NYSE:BH.A

Stock Analysis Report

Executive Summary

Biglari Holdings Inc., through its subsidiaries, primarily operates and franchises restaurants in the United States.


Snowflake Analysis

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

How has Biglari Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

BH.A

2.7%

US Hospitality

7.2%

US Market


1 Year Return

-59.2%

BH.A

-44.6%

US Hospitality

-10.4%

US Market

Return vs Industry: BH.A underperformed the US Hospitality industry which returned -44.6% over the past year.

Return vs Market: BH.A underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

BH.AIndustryMarket
7 Day0%2.7%7.2%
30 Day-50.0%-36.3%-12.6%
90 Day-50.0%-47.7%-19.4%
1 Year-59.2%-59.2%-43.1%-44.6%-8.5%-10.4%
3 Yearn/a-31.2%-35.9%15.8%8.3%
5 Yearn/a-25.3%-33.6%35.8%21.0%

Price Volatility Vs. Market

How volatile is Biglari Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Biglari 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: BH.A ($300) is trading below our estimate of fair value ($9109.93)

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


Price To Earnings Ratio

PE vs Industry: BH.A is good value based on its PE Ratio (2.3x) compared to the Hospitality industry average (11.9x).

PE vs Market: BH.A is good value based on its PE Ratio (2.3x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BH.A is good value based on its PB Ratio (0.3x) compared to the US Hospitality industry average (1.3x).


Next Steps

Future Growth

How is Biglari Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.3%

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 Biglari Holdings 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 Biglari Holdings performed over the past 5 years?

-15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BH.A has a large one-off gain of $61.6M impacting its December 31 2019 financial results.

Growing Profit Margin: BH.A's current net profit margins (6.8%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: BH.A's earnings have declined by -15.9% per year over the past 5 years.

Accelerating Growth: BH.A's earnings growth over the past year (134%) exceeds its 5-year average (-15.9% per year).

Earnings vs Industry: BH.A earnings growth over the past year (134%) exceeded the Hospitality industry 1.6%.


Return on Equity

High ROE: BH.A's Return on Equity (7.4%) is considered low.


Next Steps

Financial Health

How is Biglari Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BH.A's short term assets ($145.4M) exceed its short term liabilities ($139.8M).

Long Term Liabilities: BH.A's short term assets ($145.4M) do not cover its long term liabilities ($383.2M).


Debt to Equity History and Analysis

Debt Level: BH.A's debt to equity ratio (29.2%) is considered satisfactory.

Reducing Debt: BH.A's debt to equity ratio has reduced from 30% to 29.2% over the past 5 years.

Debt Coverage: BH.A's debt is well covered by operating cash flow (52%).

Interest Coverage: BH.A's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: BH.A's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

  • Explore more healthy companies in the Consumer Services industry.

Dividend

What is Biglari Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate BH.A'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 BH.A's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BH.A'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 BH.A's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

10.1yrs

Average board tenure


CEO

Sardar Biglari (41yo)

10.17s

Tenure

US$900,000

Compensation

Mr. Sardar Biglari, CFA, serves as the Principal, Chairman of the Board of Directors and Chief Executive Officer of Biglari Capital Corp. since its inception in 2000. Mr. Biglari serves as an Editor-in-Chi ...


CEO Compensation Analysis

Compensation vs Market: Sardar's total compensation ($USD900.00K) is below average for companies of similar size in the US market ($USD1.49M).

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


Board Members

NamePositionTenureCompensationOwnership
Sardar Biglari
Chairman & CEO10.17yrsUS$900.00k0.00016% $264.0
James Mastrian
Independent Director7.58yrsUS$70.00k0.016% $26.3k
Ruth Person
Independent Director18.17yrsUS$70.00k0.025% $40.7k
Philip Cooley
Vice Chairman of the Board10.83yrsUS$252.50k0.36% $594.9k
Kenneth Cooper
Independent Director9.42yrsUS$80.00k0.015% $25.5k
John Cardwell
Director0.42yrno datano data

10.1yrs

Average Tenure

74yo

Average Age

Experienced Board: BH.A's board of directors are seasoned and experienced ( 10.1 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Biglari Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Biglari Holdings Inc.
  • Ticker: BH.A
  • Exchange: NYSE
  • Founded: 1934
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$164.974m
  • Shares outstanding: 620.59k
  • Website: https://www.biglariholdings.com

Number of Employees


Location

  • Biglari Holdings Inc.
  • 17802 IH 10 West
  • Suite 400
  • San Antonio
  • Texas
  • 78257
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BHNYSE (New York Stock Exchange)Class B Common StockUSUSDMay 2018
BH.ANYSE (New York Stock Exchange)YesClass A common stockUSUSDMay 2018

Biography

Biglari Holdings Inc., through its subsidiaries, primarily operates and franchises restaurants in the United States. The company owns, operates, and franchises restaurants under the Steak n Shake and Western Sizzlin names. As of December 31, 2019, it operated 368 Steak n Shake company-operated restaurants and 213 franchised units; and 4 Western Sizzlin company-operated restaurants and 48 franchised units. The company also engages in underwriting commercial trucking insurance, and selling physical damage and non-trucking liability insurance to truckers; and operates oil and natural gas properties offshore in the Gulf of Mexico. In addition, it publishes and sells magazines, and related publishing products under the MAXIM and Maxim brand name; and licenses media products and services, as well as is involved in the investment activities. The company was formerly known as The Steak n Shake Company and changed its name to Biglari Holdings Inc. in April 2010. Biglari Holdings Inc. was founded in 1934 and is based in San Antonio, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 03:31
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.