GTSM:2732

Stock Analysis Report

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Executive Summary

La Kaffa International Co., Ltd. operates cafes that provides tea, Taiwanese traditional desserts, set meals, coffee and bakery products, and Chinese food products in Taiwan and internationally. More Details


Snowflake Analysis

Adequate balance sheet unattractive dividend payer.

Share Price & News

How has La Kaffa International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2732 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 2732's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.5%

2732

1.6%

TW Hospitality

-0.1%

TW Market


1 Year Return

-8.3%

2732

20.0%

TW Hospitality

41.5%

TW Market

Return vs Industry: 2732 underperformed the TW Hospitality industry which returned 20% over the past year.

Return vs Market: 2732 underperformed the TW Market which returned 41.5% over the past year.


Shareholder returns

2732IndustryMarket
7 Day-2.5%1.6%-0.1%
30 Day19.4%14.6%5.6%
90 Day7.8%3.6%15.0%
1 Year-3.1%-8.3%23.5%20.0%46.5%41.5%
3 Year86.1%63.5%-3.7%-12.6%67.1%48.2%
5 Year149.3%97.8%8.3%-7.2%123.0%83.7%

Long-Term Price Volatility Vs. Market

How volatile is La Kaffa International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is La Kaffa International undervalued compared to its fair value and its price relative to the market?

35.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2732 (NT$138.5) is trading above our estimate of fair value (NT$83.93)

Significantly Below Fair Value: 2732 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2732 is poor value based on its PE Ratio (35.4x) compared to the TW Hospitality industry average (35.1x).

PE vs Market: 2732 is poor value based on its PE Ratio (35.4x) compared to the TW market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2732's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2732 is overvalued based on its PB Ratio (4.1x) compared to the TW Hospitality industry average (2.4x).


Next Steps

Future Growth

How is La Kaffa International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

73.8%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as La Kaffa International has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has La Kaffa International performed over the past 5 years?

17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2732 has a large one-off gain of NT$48.2M impacting its September 30 2020 financial results.

Growing Profit Margin: 2732's current net profit margins (3.7%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: 2732's earnings have grown by 17% per year over the past 5 years.

Accelerating Growth: 2732's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2732 had negative earnings growth (-55.4%) over the past year, making it difficult to compare to the Hospitality industry average (-28.3%).


Return on Equity

High ROE: 2732's Return on Equity (10.5%) is considered low.


Next Steps

Financial Health

How is La Kaffa International's financial position?


Financial Position Analysis

Short Term Liabilities: 2732's short term assets (NT$2.1B) exceed its short term liabilities (NT$2.0B).

Long Term Liabilities: 2732's short term assets (NT$2.1B) exceed its long term liabilities (NT$519.1M).


Debt to Equity History and Analysis

Debt Level: 2732's debt to equity ratio (55.4%) is considered high.

Reducing Debt: 2732's debt to equity ratio has increased from 9.3% to 55.4% over the past 5 years.

Debt Coverage: 2732's debt is well covered by operating cash flow (77.6%).

Interest Coverage: 2732's interest payments on its debt are well covered by EBIT (28.3x coverage).


Balance Sheet


Next Steps

Dividend

What is La Kaffa International current dividend yield, its reliability and sustainability?

6.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2732's dividend (6.14%) is higher than the bottom 25% of dividend payers in the TW market (1.98%).

High Dividend: 2732's dividend (6.14%) is in the top 25% of dividend payers in the TW market (4.97%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 2732 has been paying a dividend for less than 10 years.

Growing Dividend: 2732's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (217.1%), 2732's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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


CEO

Guo Qiang Zhang

no data

Tenure

Guo Qiang Zhang serves as the General Manager at La Kaffa International Co., LTD.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

La Kaffa International Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: La Kaffa International Co., Ltd.
  • Ticker: 2732
  • Exchange: GTSM
  • Founded: 2004
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: NT$5.635b
  • Shares outstanding: 40.69m
  • Website: https://www.lakaffagroup.com

Location

  • La Kaffa International Co., Ltd.
  • No. 98, Gaotie 9th Road
  • Zhubei City
  • 302
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2732GTSM (Taipei Exchange)YesCommon StockTWTWDDec 2012

Biography

La Kaffa International Co., Ltd. operates cafes that provides tea, Taiwanese traditional desserts, set meals, coffee and bakery products, and Chinese food products in Taiwan and internationally. Its brand ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 08:32
End of Day Share Price2021/03/03 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.