NYSE:BH

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with worrying 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

21.5%

BH

6.1%

US Hospitality

1.2%

US Market


1 Year Return

-17.1%

BH

-21.4%

US Hospitality

16.8%

US Market

Return vs Industry: BH exceeded the US Hospitality industry which returned -23.6% over the past year.

Return vs Market: BH underperformed the US Market which returned 16.4% over the past year.


Shareholder returns

BHIndustryMarket
7 Day21.5%6.1%1.2%
30 Day39.0%7.3%4.9%
90 Day58.1%24.8%20.0%
1 Year-17.1%-17.1%-19.7%-21.4%19.3%16.8%
3 Yearn/a-13.9%-19.6%43.7%34.4%
5 Yearn/a1.5%-9.4%75.5%56.6%

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 ($83.39) is trading below our estimate of fair value ($5743.78)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BH is good value based on its PB Ratio (0.6x) compared to the US Hospitality industry average (2x).


Next Steps

Future Growth

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

69.2%

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?

-29.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BH is currently unprofitable.

Growing Profit Margin: BH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BH is unprofitable, and losses have increased over the past 5 years at a rate of 29.2% per year.

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

Earnings vs Industry: BH is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-41.9%).


Return on Equity

High ROE: BH has a negative Return on Equity (-15.66%), as it is currently unprofitable.


Next Steps

Financial Health

How is Biglari Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BH's short term assets ($149.5M) do not cover its short term liabilities ($301.6M).

Long Term Liabilities: BH's short term assets ($149.5M) do not cover its long term liabilities ($164.7M).


Debt to Equity History and Analysis

Debt Level: BH's debt to equity ratio (45.5%) is considered high.

Reducing Debt: BH's debt to equity ratio has increased from 30% to 45.5% over the past 5 years.

Debt Coverage: BH's debt is well covered by operating cash flow (84.3%).

Interest Coverage: BH is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if BH'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'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?

11.3yrs

Average board tenure


CEO

Sardar Biglari (42 yo)

10.58yrs

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 ($USD900.00K) is below average for companies of similar size in the US market ($USD1.30M).

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


Board Members

NamePositionTenureCompensationOwnership
Sardar Biglari
Chairman & CEO10.58yrsUS$900.00k0.00016%
$ 424.0
Ruth Person
Independent Director18.58yrsUS$72.50k0.025%
$ 65.3k
Philip Cooley
Vice Chairman of the Board11.33yrsUS$254.50k0.36%
$ 955.5k
Kenneth Cooper
Independent Director9.83yrsUS$82.50k0.015%
$ 41.0k
John Cardwell
Independent Director0.83yrUS$10.00kno data

11.3yrs

Average Tenure

75yo

Average Age

Experienced Board: BH's board of directors are seasoned and experienced ( 11.3 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

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


Key Information

  • Name: Biglari Holdings Inc.
  • Ticker: BH
  • Exchange: NYSE
  • Founded: 1934
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$264.970m
  • 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 Weste ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 00:02
End of Day Share Price2020/08/10 00:00
Earnings2020/06/30
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.