NasdaqCM:STKS

Stock Analysis Report

Executive Summary

The ONE Group Hospitality, Inc., a hospitality company, develops, owns, and operates restaurants and lounges worldwide.

Rewards

Earnings are forecast to grow 30.06% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($92M)



Snowflake Analysis

High growth potential with proven track record.


Similar Companies

Share Price & News

How has ONE Group Hospitality's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: STKS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

STKS

-0.04%

US Hospitality

-0.3%

US Market


1 Year Return

24.9%

STKS

13.4%

US Hospitality

18.6%

US Market

Return vs Industry: STKS exceeded the US Hospitality industry which returned 13.4% over the past year.

Return vs Market: STKS exceeded the US Market which returned 18.6% over the past year.


Shareholder returns

STKSIndustryMarket
7 Day-0.3%-0.04%-0.3%
30 Day2.5%2.9%2.2%
90 Day13.6%4.0%5.6%
1 Year24.9%24.9%16.4%13.4%21.1%18.6%
3 Year27.9%27.9%33.3%24.1%45.6%36.2%
5 Year-31.4%-31.4%48.8%33.1%71.1%52.2%

Price Volatility Vs. Market

How volatile is ONE Group Hospitality's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ONE Group Hospitality undervalued compared to its fair value and its price relative to the market?

22.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STKS ($3.26) is trading above our estimate of fair value ($0.36)

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


Price To Earnings Ratio

PE vs Industry: STKS is poor value based on its PE Ratio (22.3x) compared to the Hospitality industry average (22.3x).

PE vs Market: STKS is poor value based on its PE Ratio (22.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: STKS is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: STKS is overvalued based on its PB Ratio (6.6x) compared to the US Hospitality industry average (2.4x).


Next Steps

Future Growth

How is ONE Group Hospitality forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

30.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STKS's forecast earnings growth (30.1% per year) is above the savings rate (1.7%).

Earnings vs Market: STKS's earnings (30.1% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: STKS's revenue (39.9% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: STKS's revenue (39.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if STKS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has ONE Group Hospitality performed over the past 5 years?

-5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STKS has high quality earnings.

Growing Profit Margin: STKS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: STKS has become profitable over the past 5 years, growing earnings by -5.6% per year.

Accelerating Growth: STKS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: STKS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (-16.7%).


Return on Equity

High ROE: STKS's Return on Equity (34.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ONE Group Hospitality's financial position?


Financial Position Analysis

Short Term Liabilities: STKS's short term assets ($11.9M) do not cover its short term liabilities ($13.6M).

Long Term Liabilities: STKS's short term assets ($11.9M) do not cover its long term liabilities ($68.0M).


Debt to Equity History and Analysis

Debt Level: STKS's debt to equity ratio (96.3%) is considered high.

Reducing Debt: STKS's debt to equity ratio has increased from 63.1% to 96.3% over the past 5 years.

Debt Coverage: STKS's debt is well covered by operating cash flow (45.1%).

Interest Coverage: STKS's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet

Inventory Level: STKS has a high level of physical assets or inventory.

Debt Coverage by Assets: STKS's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is ONE Group Hospitality's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate STKS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate STKS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if STKS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if STKS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of STKS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of ONE Group Hospitality's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Manny Hilario (51yo)

2.2yrs

Tenure

US$615,592

Compensation

Mr. Emanuel P. N. Hilario, also known as Manny, has been the Chief Executive Officer and President of The ONE Group Hospitality, Inc. since October 30, 2017. He has been Director of TransAct Technologies I ...


CEO Compensation Analysis

Compensation vs Market: Manny's total compensation ($USD615.59K) is about average for companies of similar size in the US market ($USD508.62K).

Compensation vs Earnings: Manny's compensation has been consistent with company performance over the past year.


Management Age and Tenure

0.9yrs

Average Tenure

54.5yo

Average Age

Experienced Management: STKS's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

2.7yrs

Average Tenure

55yo

Average Age

Experienced Board: STKS's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$358,22622 May 19
Argyle Street Management Limited
EntityCompany
Shares95,273
Max PriceUS$3.76

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.7%.


Management Team

  • Manny Hilario (51yo)

    President

    • Tenure: 2.2yrs
    • Compensation: US$615.59k
  • Linda Siluk (62yo)

    Chief Administrative Officer

    • Tenure: 0.7yrs
    • Compensation: US$396.98k
  • Jonathan Segal (58yo)

    Executive Chairman

    • Tenure: 2.2yrs
    • Compensation: US$466.33k
  • Tyler Loy (39yo)

    Chief Financial Officer

    • Tenure: 0.7yrs
  • Caroline Baker

    Vice President of Operations

    • Tenure: 1.2yrs

Board Members

  • Gene Bullis (74yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$90.00k
  • Manny Hilario (51yo)

    President

    • Tenure: 2.2yrs
    • Compensation: US$615.59k
  • Mike Serruya (55yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$90.00k
  • Dimitrios Angelis (49yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$70.00k
  • Jonathan Segal (58yo)

    Executive Chairman

    • Tenure: 2.2yrs
    • Compensation: US$466.33k

Company Information

The ONE Group Hospitality, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The ONE Group Hospitality, Inc.
  • Ticker: STKS
  • Exchange: NasdaqCM
  • Founded: 2004
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$92.105m
  • Shares outstanding: 28.87m
  • Website: https://www.togrp.com

Number of Employees


Location

  • The ONE Group Hospitality, Inc.
  • 411 West 14th Street
  • 2nd Floor
  • New York
  • New York
  • 10014
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STKSNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDOct 2013

Biography

The ONE Group Hospitality, Inc., a hospitality company, develops, owns, and operates restaurants and lounges worldwide. It operates in three segments: Owned Restaurants; Owned Food, Beverage and Other; and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 00:20
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.