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Biglari Holdings

NYSE:BH
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BH
NYSE
$312M
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

Biglari Holdings Inc., through its subsidiaries, primarily operates and franchises restaurants in the United States. The last earnings update was 80 days ago. More info.


Add to Portfolio Compare Print
  • Biglari Holdings has significant price volatility in the past 3 months.
BH Share Price and Events
7 Day Returns
-1.6%
NYSE:BH
-1.6%
US Hospitality
-1.2%
US Market
1 Year Returns
-47.1%
NYSE:BH
-5.2%
US Hospitality
3.3%
US Market
BH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Biglari Holdings (BH) -1.6% -3.8% -35.8% -47.1% - -
US Hospitality -1.6% 1.7% -2.5% -5.2% 40.6% 20.6%
US Market -1.2% 0.8% 0.9% 3.3% 35.9% 41.7%
1 Year Return vs Industry and Market
  • BH underperformed the Hospitality industry which returned -5.2% over the past year.
  • BH underperformed the Market in United States of America which returned 3.3% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

BH Value

 Is Biglari Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Biglari Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Biglari Holdings.

NYSE:BH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 11.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:BH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.921 (1 + (1- 21%) (110.2%))
1.485
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.48
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.485 * 5.96%)
11.58%

Discounted Cash Flow Calculation for NYSE:BH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Biglari Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:BH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.58%)
2020 2.01 Est @ -65.54% 1.80
2021 1.10 Est @ -45.06% 0.89
2022 0.77 Est @ -30.72% 0.55
2023 0.61 Est @ -20.69% 0.39
2024 0.52 Est @ -13.66% 0.30
2025 0.48 Est @ -8.74% 0.25
2026 0.45 Est @ -5.3% 0.21
2027 0.44 Est @ -2.89% 0.18
2028 0.43 Est @ -1.21% 0.16
2029 0.43 Est @ -0.03% 0.15
Present value of next 10 years cash flows $4.88
NYSE:BH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $0.43 × (1 + 2.73%) ÷ (11.58% – 2.73%)
$5.04
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $5.04 ÷ (1 + 11.58%)10
$1.69
NYSE:BH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4.88 + $1.69
$6.57
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6.57 / 0.62
$10.58
NYSE:BH Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NYSE:BH represents 0.19443x of NYSE:BH.A
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.19443x
Value per Share
(Listing Adjusted, USD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 10.58 x 0.19443
$2.06
Value per share (USD) From above. $2.06
Current discount Discount to share price of $99.55
= -1 x ($99.55 - $2.06) / $2.06
-4737.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Biglari Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Biglari Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Biglari Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:BH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $89.51
NYSE:BH.A Share Price ** NYSE (2019-07-19) in USD $512
United States of America Hospitality Industry PE Ratio Median Figure of 74 Publicly-Listed Hospitality Companies 22.4x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.86x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Biglari Holdings.

NYSE:BH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:BH.A Share Price ÷ EPS (both in USD)

= 512 ÷ 89.51

5.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Biglari Holdings is good value based on earnings compared to the US Hospitality industry average.
  • Biglari Holdings is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Biglari Holdings's expected growth come at a high price?
Raw Data
NYSE:BH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.72x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
23.8%per year
United States of America Hospitality Industry PEG Ratio Median Figure of 56 Publicly-Listed Hospitality Companies 1.88x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Biglari Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Biglari Holdings's assets?
Raw Data
NYSE:BH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $936.77
NYSE:BH.A Share Price * NYSE (2019-07-19) in USD $512
United States of America Hospitality Industry PB Ratio Median Figure of 112 Publicly-Listed Hospitality Companies 2.16x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.79x
NYSE:BH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:BH.A Share Price ÷ Book Value per Share (both in USD)

= 512 ÷ 936.77

0.55x

* Primary Listing of Biglari Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Biglari Holdings is good value based on assets compared to the US Hospitality industry average.
X
Value checks
We assess Biglari Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Biglari Holdings has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BH Future Performance

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

  • No analysts cover Biglari Holdings, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
23.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Biglari Holdings expected to grow at an attractive rate?
  • Biglari Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Biglari Holdings's earnings growth is expected to exceed the United States of America market average.
  • Unable to compare Biglari Holdings's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NYSE:BH Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:BH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 23.8%
United States of America Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 17.1%
United States of America Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 7.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:BH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:BH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
NYSE:BH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 790 20 31
2018-12-31 810 21 19
2018-09-30 824 3 46
2018-06-30 834 9 35
2018-03-31 839 6 64
2017-12-31 840 26 50
2017-09-30 837 24 52
2017-06-30 839 39 16
2017-03-31 845 56 32
2016-12-31 850 63 99
2016-09-30 859 74 -7
2016-06-30 861 70 63

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Biglari Holdings's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Biglari Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:BH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Biglari Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
NYSE:BH Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 89.51
2018-12-31 55.71
2018-09-30 38.30
2018-06-30 29.10
2018-03-31 176.23
2017-12-31 136.01
2017-09-30 89.02
2017-06-30 20.35
2017-03-31 32.32
2016-12-31 271.22
2016-09-30 -5.34
2016-06-30 50.44

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Biglari Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Biglari Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Biglari Holdings has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BH Past Performance

  How has Biglari Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Biglari Holdings's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Biglari Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Biglari Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Biglari Holdings's 1-year earnings growth is negative, it can't be compared to the US Hospitality industry average.
Earnings and Revenue History
Biglari Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Biglari Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 789.53 31.02 127.57
2018-12-31 809.89 19.39 127.23
2018-09-30 823.77 46.41 135.10
2018-06-30 834.42 35.41 135.27
2018-03-31 838.64 64.08 133.97
2017-12-31 839.80 50.07 130.81
2017-09-30 836.57 51.51 126.33
2017-06-30 839.07 16.08 125.15
2017-03-31 845.23 32.47 126.38
2016-12-31 850.08 99.45 127.26
2016-09-30 859.31 -6.60 129.29
2016-06-30 861.02 62.83 129.73
2016-03-31 863.87 25.34 133.04
2015-12-31 861.45 -15.84 135.13
2015-09-30 870.68 110.36 131.24
2015-06-30 860.35 109.51 136.79
2015-03-31 846.57 138.24 133.42
2014-12-31 828.08 100.83 130.36
2014-09-24 793.81 28.80 128.47
2014-07-02 779.64 47.11 136.75
2014-04-09 771.01 144.22 126.41
2013-12-18 761.65 152.20 125.42
2013-09-25 755.82 140.27 123.93
2013-07-03 750.68 116.86 116.41
2013-04-10 741.85 15.01 112.64
2012-12-19 740.33 17.36 108.81
2012-09-26 740.21 21.59 108.65

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Biglari Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Biglari Holdings used its assets less efficiently than the US Hospitality industry average last year based on Return on Assets.
  • It is difficult to establish if Biglari Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Biglari Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Biglari Holdings has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BH Health

 How is Biglari Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Biglari Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Biglari Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Biglari Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Biglari Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Biglari Holdings Company Filings, last reported 3 months ago.

NYSE:BH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 581.35 180.93 71.81
2018-12-31 570.46 181.52 84.11
2018-09-30 528.42 181.84 78.39
2018-06-30 542.73 182.21 75.01
2018-03-31 551.71 182.62 71.89
2017-12-31 571.33 182.99 81.87
2017-09-30 511.32 183.25 76.89
2017-06-30 535.74 183.65 87.90
2017-03-31 514.97 183.87 89.26
2016-12-31 531.94 199.19 98.11
2016-09-30 460.88 199.54 98.11
2016-06-30 524.51 199.94 87.62
2016-03-31 491.68 205.83 79.92
2015-12-31 451.37 207.89 80.27
2015-09-30 487.74 215.76 71.50
2015-06-30 726.57 216.39 89.59
2015-03-31 731.06 216.98 134.16
2014-12-31 725.55 217.35 140.47
2014-09-24 638.72 218.63 145.81
2014-07-02 553.47 218.64 121.99
2014-04-09 543.82 218.19 134.48
2013-12-18 584.96 107.69 169.73
2013-09-25 564.59 120.65 180.11
2013-07-03 482.05 122.95 153.57
2013-04-10 451.91 131.14 405.11
2012-12-19 398.43 145.63 337.76
2012-09-26 401.21 132.74 330.22
  • Biglari Holdings's level of debt (46.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (58.4% vs 46.7% today).
  • Debt is not well covered by operating cash flow (7.4%, less than 20% of total debt).
  • Unable to confirm if the interest payments on Biglari Holdings's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Biglari Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Biglari Holdings has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BH Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Biglari Holdings dividends.
If you bought $2,000 of Biglari Holdings shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Biglari Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Biglari Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:BH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 47 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:BH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Biglari Holdings has not reported any payouts.
  • Unable to verify if Biglari Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Biglari Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Biglari Holdings has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Biglari Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Biglari Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Biglari Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BH Management

 What is the CEO of Biglari Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sardar Biglari
COMPENSATION $900,000
AGE 41
TENURE AS CEO 9.5 years
CEO Bio

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-Chief at Maxim Inc. He has been the Chief Executive Officer of Biglari Holdings Inc. since 2010. He has been Chief Executive Officer and President of Steak n Shake Operations, Inc. since August 2008. Mr. Biglari serves Chief Executive Officer at Steak n Shake Enterprises Inc. Mr. Biglari is the sole owner of Biglari Capital. Mr. Biglari was Chairman of the Board of the Predecessor of Biglari Holdings in June 2008 and served as Chief Executive Officer in August 2008. He served as the Chief Executive Officer and President at Western Sizzlin Corporation since May 16, 2007. Mr. Biglari has been Chairman of the Board at Biglari Holdings Inc. since June 2008. He served as the Chairman of Western Sizzlin Corp., since March 21, 2006. Mr. Biglari served as the Chairman of Austins Steaks & Saloon Inc. He served as Co-Chairman of Insignia Systems Inc. from January 11, 2016 to March 1, 2017. Mr. Biglari has been a Director of Steak n Shake since March 2008. He has been a Director of CCA Industries Inc. since October 2, 2015. Mr. Biglari served as an Independent Director of Insignia Systems Inc. since December 7, 2015 until March 2017. He serves on the Board of Directors of Consumer Credit Counseling Service of Greater San Antonio and CFA Society of San Antonio. Mr. Biglari was elected to the Board of the Predecessor of Biglari Holdings in March 2008. He served as a Director of Western Sizzlin Corp. since December 1, 2005. Mr. Biglari served as a Director of CCA Industries Inc. from August 4, 2011 to July 1, 2014. He served as a Director of Austins Steaks & Saloon Inc. since December 1, 2005. Mr. Biglari is serving on the boards of directors of public companies. Mr. Biglari is a Chartered Financial Analyst.

CEO Compensation
  • Sardar's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Sardar's remuneration is lower than average for companies of similar size in United States of America.
Management Team

Sardar Biglari

TITLE
Chairman & CEO
COMPENSATION
$900K
AGE
41
TENURE
9.5 yrs

Bruce Lewis

TITLE
Controller
COMPENSATION
$895K
AGE
54
TENURE
7.5 yrs
Board of Directors Tenure

Average tenure and age of the Biglari Holdings board of directors in years:

10.3
Average Tenure
74
Average Age
  • The average tenure for the Biglari Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Sardar Biglari

TITLE
Chairman & CEO
COMPENSATION
$900K
AGE
41
TENURE
11.1 yrs

Philip Cooley

TITLE
Vice Chairman of the Board
COMPENSATION
$253K
AGE
75
TENURE
10.3 yrs

Kenneth Cooper

TITLE
Independent Director
COMPENSATION
$80K
AGE
74
TENURE
8.8 yrs

Ruth Person

TITLE
Independent Director
COMPENSATION
$70K
AGE
74
TENURE
17.5 yrs

Jim Mastrian

TITLE
Independent Director
COMPENSATION
$70K
AGE
76
TENURE
6.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Biglari Holdings individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. Jun 19 Buy Sardar Biglari Individual 14. Jun 19 14. Jun 19 4,454 $106.90 $476,133
13. Jun 19 Buy Sardar Biglari Individual 12. Jun 19 12. Jun 19 118 $99.00 $11,682
13. Jun 19 Buy Sardar Biglari Individual 11. Jun 19 11. Jun 19 419 $99.00 $41,481
10. Jun 19 Buy Sardar Biglari Individual 06. Jun 19 07. Jun 19 3,088 $109.44 $337,067
14. Dec 18 Buy Sardar Biglari Individual 13. Dec 18 13. Dec 18 350 $125.99 $44,097
05. Jun 19 Buy Sardar Biglari Individual 03. Jun 19 05. Jun 19 13,930 $107.83 $1,433,185
28. May 19 Buy Sardar Biglari Individual 23. May 19 24. May 19 807 $98.85 $79,027
23. May 19 Buy Sardar Biglari Individual 20. May 19 22. May 19 830 $103.49 $84,730
X
Management checks
We assess Biglari Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Biglari Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BH News

Simply Wall St News

Will Biglari Holdings Inc (NYSE:BH) Continue To Underperform Its Industry?

and looking to gauge the potential return on investment in Biglari Holdings Inc (NYSE:BH). … Biglari Holdings Inc (NYSE:BH) generated a below-average return on equity of 8.76% in the past 12 months, while its industry returned 13.67%. … Knowing these components can change your views on BH's below-average returns

Simply Wall St -

Is It Too Late To Buy Biglari Holdings Inc (NYSE:BH)?

Biglari Holdings Inc (NYSE:BH), a hospitality company based in United States, saw a significant share price rise of over 20% in the past couple of months on the NYSE. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … If you are no longer interested in Biglari Holdings, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

Simply Wall St -

Is It Time To Buy Biglari Holdings Inc (BH) Based Off Its PE Ratio?

Check out our latest analysis for Biglari Holdings Breaking down the Price-Earnings ratio NYSE:BH PE PEG Gauge Nov 25th 17 P/E is often used for relative valuation since earnings power is a chief driver of investment value. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for BH Price per share = $329.88 Earnings per share = $42.047 ∴ Price-Earnings Ratio = $329.88 ÷ $42.047 = 7.8x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … Since BH's P/E of 7.8x is lower than its industry peers (25x), it means that investors are paying less than they should for each dollar of BH's earnings.

Simply Wall St -

Should Biglari Holdings Inc's (BH) Earnings Decline In Recent Times Worry You?

Below, I will examine Biglari Holdings Inc's (NYSE:BH) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers. … I prefer to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. … Biglari Holdings's most recent earnings is $16M, which, relative to last year’s figure, has dropped by a substantial -74.41%.

Simply Wall St -

BH Company Info

Description

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, 2018, it operated 413 Steak n Shake company-operated restaurants and 213 franchised units; and 4 Western Sizzlin company-operated restaurants and 55 franchised units. The company also engages in underwriting commercial trucking insurance, and selling physical damage and non-trucking liability insurance to truckers. 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.

Details
Name: Biglari Holdings Inc.
BH
Exchange: NYSE
Founded: 1934
$311,847,480
620,592
Website: http://www.biglariholdings.com
Address: Biglari Holdings Inc.
17802 IH 10 West,
Suite 400,
San Antonio,
Texas, 78257,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE BH.A Class A common stock New York Stock Exchange US USD 01. May 2018
NYSE BH Class B Common Stock New York Stock Exchange US USD 01. May 2018
Number of employees
Current staff
Staff numbers
18,684
Biglari Holdings employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 03:10
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/02/25
Last earnings filing: 2019/05/03
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.