Gourmet Master
Market Cap
NT$28.1b
Last Updated
2021/03/07 08:35 UTC
Data Sources
Company Financials +
Executive Summary
Gourmet Master Co. Ltd., an investment holding company, operates and franchises a chain of cafes in China, Taiwan, the United States, and internationally. More Details
Rewards
Risk Analysis
No risks detected for 2723 from our risk checks.
Snowflake Analysis
Flawless balance sheet and fair value.
Similar Companies
Share Price & News
How has Gourmet Master's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 2723 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: 2723's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
1.0%
2723
-0.2%
TW Hospitality
-0.7%
TW Market
1 Year Return
69.2%
2723
19.7%
TW Hospitality
39.3%
TW Market
Return vs Industry: 2723 exceeded the TW Hospitality industry which returned 19.7% over the past year.
Return vs Market: 2723 exceeded the TW Market which returned 39.3% over the past year.
Shareholder returns
| 2723 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.0% | -0.2% | -0.7% |
| 30 Day | 19.1% | 11.6% | 1.0% |
| 90 Day | 8.0% | 3.7% | 10.8% |
| 1 Year | 74.2%69.2% | 23.3%19.7% | 44.2%39.3% |
| 3 Year | -53.1%-56.5% | -5.9%-14.6% | 61.9%43.7% |
| 5 Year | -0.2%-9.6% | 6.4%-8.8% | 116.6%78.5% |
Long-Term Price Volatility Vs. Market
How volatile is Gourmet Master's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Does Gourmet Master Co. Ltd.'s (TPE:2723) Weak Fundamentals Mean That The Market Could Correct Its Share Price?1 month ago | Simply Wall St
Here's Why We Think Gourmet Master's (TPE:2723) Statutory Earnings Might Be Conservative1 month ago | Simply Wall St
Gourmet Master (TPE:2723) Seems To Use Debt Quite SensiblyValuation
Is Gourmet Master undervalued compared to its fair value and its price relative to the market?
41.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 2723 (NT$156) is trading below our estimate of fair value (NT$265.17)
Significantly Below Fair Value: 2723 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 2723 is good value based on its PE Ratio (33.9x) compared to the TW Hospitality industry average (34.5x).
PE vs Market: 2723 is poor value based on its PE Ratio (33.9x) compared to the TW market (19.3x).
Price to Earnings Growth Ratio
PEG Ratio: 2723 is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: 2723 is overvalued based on its PB Ratio (2.7x) compared to the TW Hospitality industry average (2.5x).
Next Steps
Future Growth
How is Gourmet Master forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
22.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2723's forecast earnings growth (22.4% per year) is above the savings rate (0.8%).
Earnings vs Market: 2723's earnings (22.4% per year) are forecast to grow faster than the TW market (18.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 2723's revenue (6.9% per year) is forecast to grow slower than the TW market (10.9% per year).
High Growth Revenue: 2723's revenue (6.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 2723's Return on Equity is forecast to be low in 3 years time (11.3%).
Next Steps
Past Performance
How has Gourmet Master performed over the past 5 years?
-8.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2723 has high quality earnings.
Growing Profit Margin: 2723's current net profit margins (4.1%) are lower than last year (4.6%).
Past Earnings Growth Analysis
Earnings Trend: 2723's earnings have declined by 8.2% per year over the past 5 years.
Accelerating Growth: 2723's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 2723 had negative earnings growth (-21.9%) over the past year, making it difficult to compare to the Hospitality industry average (-28.3%).
Return on Equity
High ROE: 2723's Return on Equity (8.1%) is considered low.
Next Steps
Financial Health
How is Gourmet Master's financial position?
Financial Position Analysis
Short Term Liabilities: 2723's short term assets (NT$7.7B) exceed its short term liabilities (NT$7.4B).
Long Term Liabilities: 2723's short term assets (NT$7.7B) exceed its long term liabilities (NT$4.7B).
Debt to Equity History and Analysis
Debt Level: 2723's debt to equity ratio (11.2%) is considered satisfactory.
Reducing Debt: 2723's debt to equity ratio has reduced from 14.2% to 11.2% over the past 5 years.
Debt Coverage: 2723's debt is well covered by operating cash flow (328.1%).
Interest Coverage: 2723's interest payments on its debt are well covered by EBIT (16.9x coverage).
Balance Sheet
Next Steps
Dividend
What is Gourmet Master current dividend yield, its reliability and sustainability?
1.92%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 2723's dividend (1.92%) isn’t notable compared to the bottom 25% of dividend payers in the TW market (2.01%).
High Dividend: 2723's dividend (1.92%) is low compared to the top 25% of dividend payers in the TW market (4.99%).
Stability and Growth of Payments
Stable Dividend: 2723's dividend payments have been volatile in the past 10 years.
Growing Dividend: 2723's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (65.1%), 2723's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 2723's dividends in 3 years are forecast to be covered by earnings (54.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average board tenure
CEO
Cheng Hsueh Wu
5.92yrs
Tenure
Mr. Cheng Hsueh Wu serves as the President of Comestibles Master Co., Ltd. Mr. Wu serves as Chairman of Gourmet Master Company Ltd. and Chief Executive Officer since April 1, 2015 and also has been a Direc...
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 5.92yrs | no data | 16.43% NT$ 4.6b | |
| Director | 11.17yrs | no data | no data | |
| Director | 4.75yrs | no data | no data | |
| Independent Director | 4.75yrs | no data | no data | |
| Independent Director | 4.75yrs | no data | no data | |
| Director | 3yrs | no data | 0.000030% NT$ 8.4k | |
| Independent Director | 1.75yrs | no data | no data | |
| Director | no data | no data | no data |
4.8yrs
Average Tenure
Experienced Board: 2723's board of directors are considered experienced (4.8 years average tenure).
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
Gourmet Master Co. Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Gourmet Master Co. Ltd.
- Ticker: 2723
- Exchange: TSEC
- Founded: 2005
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: NT$28.080b
- Shares outstanding: 180.00m
- Website: https://www.85cafe.com
Location
- Gourmet Master Co. Ltd.
- 408, No. 35, 23rd., Industrial Park
- Taichung
- 408
- Taiwan
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 2723 | TSEC (Taiwan Stock Exchange) | Yes | Common Stock | TW | TWD | Nov 2010 |
Biography
Gourmet Master Co. Ltd., an investment holding company, operates and franchises a chain of cafes in China, Taiwan, the United States, and internationally. The company operates its cafes under the 85°C name...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/07 08:35 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.