AMEX:BWL.A

Stock Analysis Report

Executive Summary

Bowl America Incorporated, together with its subsidiaries, operates bowling centers in the United States.


Snowflake Analysis

Flawless balance sheet average dividend payer.

Share Price & News

How has Bowl America's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

17.4%

BWL.A

20.7%

US Hospitality

9.4%

US Market


1 Year Return

-38.7%

BWL.A

-40.8%

US Hospitality

-6.8%

US Market

Return vs Industry: BWL.A exceeded the US Hospitality industry which returned -40.8% over the past year.

Return vs Market: BWL.A underperformed the US Market which returned -6.8% over the past year.


Shareholder returns

BWL.AIndustryMarket
7 Day17.4%20.7%9.4%
30 Day-18.3%-19.9%-3.9%
90 Dayn/a-45.3%-16.5%
1 Year-35.8%-38.7%-39.2%-40.8%-4.8%-6.8%
3 Year-21.8%-31.9%-25.7%-30.7%23.4%15.2%
5 Year-15.9%-32.4%-20.1%-28.9%41.3%25.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Bowl America undervalued compared to its fair value and its price relative to the market?

0.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BWL.A ($9.81) is trading below our estimate of fair value ($9.86)

Significantly Below Fair Value: BWL.A is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BWL.A is poor value based on its PE Ratio (15.7x) compared to the Hospitality industry average (13.1x).

PE vs Market: BWL.A is poor value based on its PE Ratio (15.7x) compared to the US market (13.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BWL.A is overvalued based on its PB Ratio (2.2x) compared to the US Hospitality industry average (1.3x).


Next Steps

Future Growth

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

16.6%

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 Bowl America 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 Bowl America performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BWL.A has a large one-off gain of $1.1M impacting its December 29 2019 financial results.

Growing Profit Margin: BWL.A's current net profit margins (13.4%) are higher than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: BWL.A's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: BWL.A's earnings growth over the past year (1.7%) is below its 5-year average (16.5% per year).

Earnings vs Industry: BWL.A earnings growth over the past year (1.7%) exceeded the Hospitality industry 1.6%.


Return on Equity

High ROE: BWL.A's Return on Equity (13.8%) is considered low.


Next Steps

Financial Health

How is Bowl America's financial position?


Financial Position Analysis

Short Term Liabilities: BWL.A's short term assets ($10.1M) exceed its short term liabilities ($3.9M).

Long Term Liabilities: BWL.A's short term assets ($10.1M) exceed its long term liabilities ($3.3M).


Debt to Equity History and Analysis

Debt Level: BWL.A is debt free.

Reducing Debt: BWL.A had no debt 5 years ago.

Debt Coverage: BWL.A has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BWL.A has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Bowl America's current dividend yield, its reliability and sustainability?

7.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BWL.A's dividend (7.14%) is higher than the bottom 25% of dividend payers in the US market (1.87%).

High Dividend: BWL.A's dividend (7.14%) is in the top 25% of dividend payers in the US market (5.12%)


Stability and Growth of Payments

Stable Dividend: BWL.A's dividends per share have been stable in the past 10 years.

Growing Dividend: BWL.A's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (112.4%), BWL.A's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

23.2yrs

Average board tenure


CEO

Cheryl Dragoo (71yo)

1.25s

Tenure

US$186,359

Compensation

Ms. Cheryl A. Dragoo has been the President and Chief Executive Officer at Bowl America Incorporated since December 3, 2019. Ms. Dragoo has been the Chief Financial Officer of Bowl America Incorporated sin ...


CEO Compensation Analysis

Compensation vs Market: Cheryl's total compensation ($USD186.36K) is below average for companies of similar size in the US market ($USD607.70K).

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


Board Members

NamePositionTenureCompensationOwnership
Cheryl Dragoo
President1.25yrsUS$186.36k0.27% $137.4k
Ruth Macklin
Senior VP42.17yrsUS$8.50k7.13% $3.6m
Merle Fabian
Director30.08yrsUS$4.60k33.94% $17.2m
Allan Sher
Independent Director23.17yrsUS$8.00k1.02% $514.8k
Nancy Hull
Independent Director5.83yrsUS$8.00k7.87% $4.0m

23.2yrs

Average Tenure

81yo

Average Age

Experienced Board: BWL.A's board of directors are seasoned and experienced ( 23.2 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

Bowl America Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bowl America Incorporated
  • Ticker: BWL.A
  • Exchange: AMEX
  • Founded: 1958
  • Industry: Leisure Facilities
  • Sector: Consumer Services
  • Market Cap: US$50.608m
  • Shares outstanding: 5.16m
  • Website: https://www.bowl-america.com

Number of Employees


Location

  • Bowl America Incorporated
  • PO Box 1288
  • Springfield
  • Virginia
  • 22151
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BWL.AAMEX (NYSE MKT LLC)YesClass A Common SharesUSUSDDec 1972

Biography

Bowl America Incorporated, together with its subsidiaries, operates bowling centers in the United States. Its bowling centers offer bowling lanes and other facilities; food and beverages, game rooms, rental lockers, and meeting room facilities; and shoes for rental, as well as retail bowling accessories. As of September 1, 2019, the company operated 17 bowling centers, including 9 bowling centers in Washington, D.C.; 1 bowling center in Baltimore, Maryland; 3 bowling centers in Jacksonville, Florida; and 4 bowling centers in Richmond, Virginia. Bowl America Incorporated was founded in 1958 and is headquartered in Springfield, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 04:00
End of Day Share Price2020/04/09 00:00
Earnings2019/12/29
Annual Earnings2019/06/30


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.