Catalist:DRX

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

ST Group Food Industries Holdings

Executive Summary

ST Group Food Industries Holdings Limited, an investment holding company, owns, operates, and franchises restaurants. More Details


Snowflake Analysis

High growth potential with mediocre balance sheet.

Share Price & News

How has ST Group Food Industries Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: Insufficient data to determine DRX's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine DRX's volatility change over the past year.


Market Performance


7 Day Return

-5.9%

DRX

0.2%

SG Hospitality

1.2%

SG Market


1 Year Return

-54.3%

DRX

1.8%

SG Hospitality

-1.6%

SG Market

Return vs Industry: DRX underperformed the SG Hospitality industry which returned 1.8% over the past year.

Return vs Market: DRX underperformed the SG Market which returned -1.6% over the past year.


Shareholder returns

DRXIndustryMarket
7 Day-5.9%0.2%1.2%
30 Day0%-0.4%1.5%
90 Day-9.7%-0.01%6.1%
1 Year-53.7%-54.3%4.2%1.8%3.6%-1.6%
3 Yearn/a-19.1%-25.6%-7.2%-18.6%
5 Yearn/a14.1%-0.9%17.2%-4.3%

Long-Term Price Volatility Vs. Market

How volatile is ST Group Food Industries Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is ST Group Food Industries Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DRX (SGD0.11) is trading below our estimate of fair value (SGD3.56)

Significantly Below Fair Value: DRX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DRX is unprofitable, so we can't compare its PE Ratio to the SG Hospitality industry average.

PE vs Market: DRX is unprofitable, so we can't compare its PE Ratio to the SG market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DRX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DRX is overvalued based on its PB Ratio (1.3x) compared to the SG Hospitality industry average (0.7x).


Next Steps

Future Growth

How is ST Group Food Industries Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

65.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DRX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: DRX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DRX's is expected to become profitable in the next 3 years.

Revenue vs Market: DRX's revenue (22.4% per year) is forecast to grow faster than the SG market (9% per year).

High Growth Revenue: DRX's revenue (22.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DRX's Return on Equity is forecast to be low in 3 years time (17.5%).


Next Steps

  • Explore growth companies in the Consumer Services industry.

Past Performance

How has ST Group Food Industries Holdings performed over the past 5 years?

-23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DRX is currently unprofitable.

Growing Profit Margin: DRX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DRX is unprofitable, and losses have increased over the past 5 years at a rate of 23.1% per year.

Accelerating Growth: Unable to compare DRX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DRX is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-2.4%).


Return on Equity

High ROE: DRX has a negative Return on Equity (-7.62%), as it is currently unprofitable.


Next Steps

Financial Health

How is ST Group Food Industries Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: DRX's short term assets (A$17.4M) exceed its short term liabilities (A$17.2M).

Long Term Liabilities: DRX's short term assets (A$17.4M) do not cover its long term liabilities (A$23.0M).


Debt to Equity History and Analysis

Debt Level: DRX's debt to equity ratio (6.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if DRX's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: DRX's debt is well covered by operating cash flow (534.2%).

Interest Coverage: Insufficient data to determine if DRX's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is ST Group Food Industries Holdings's current dividend yield, its reliability and sustainability?

1.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DRX's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (1.99%).

High Dividend: DRX's dividend (1.38%) is low compared to the top 25% of dividend payers in the SG market (4.88%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether DRX's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if DRX's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: DRX is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: DRX's dividends in 3 years are not forecast to be well covered by earnings (2701.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Tatt Ghee Saw (40 yo)

no data

Tenure

Mr. Saw Tatt Ghee is the Executive Chairman and CEO of ST Group Food Industries Holdings Limited, and was appointed to the Board on 11 January 2018. He is responsible for overseeing the overall development...


Leadership Team

NamePositionTenureCompensationOwnership
Tatt Ghee Saw
Executive Chairman & CEOno datano data30.81%
A$ 8.4m
Hoe Keng Lim
Chief Financial Officer0.50yrno datano data
Lee Ping Saw
Chief Administrative Officer & Executive Director1.75yrsno data5.51%
A$ 1.5m
Heng Cheam
Joint Company Secretary1.25yrsno datano data
Li Toh
Joint Company Secretary1.25yrsno datano data

1.3yrs

Average Tenure

Experienced Management: DRX's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Tatt Ghee Saw
Executive Chairman & CEOno datano data30.81%
A$ 8.4m
Lee Ping Saw
Chief Administrative Officer & Executive Director1.75yrsno data5.51%
A$ 1.5m
Wee Chan
Lead Independent Director1.75yrsAU$34.91kno data
Zhi Chau Yap
Independent Director1.75yrsAU$34.91k0.60%
A$ 163.5k
Sim Swee Yam
Independent Director1.75yrsAU$33.66kno data

1.8yrs

Average Tenure

41yo

Average Age

Experienced Board: DRX's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ST Group Food Industries Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ST Group Food Industries Holdings Limited
  • Ticker: DRX
  • Exchange: Catalist
  • Founded: 2011
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: S$27.157m
  • Shares outstanding: 242.48m
  • Website: https://stgroup.net.au

Number of Employees


Location

  • ST Group Food Industries Holdings Limited
  • 120 Turner Street
  • Port Melbourne
  • Melbourne
  • Victoria
  • 3207
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DRXCatalist (Singapore Exchange Catalist Market)YesOrdinary SharesSGSGDJul 2019

Biography

ST Group Food Industries Holdings Limited, an investment holding company, owns, operates, and franchises restaurants. The company operates through Food and Beverage Retails, Supply Chain, and Franchise seg...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 11:09
End of Day Share Price2021/03/04 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.