OTCPK:BTKG.F

Stock Analysis Report

Executive Summary

BreadTalk Group Limited, an investment holding company, engages in bakery, food court, restaurant, and food and beverage businesses in Singapore, Mainland China, Hong Kong, Taiwan, Southeast Asia, and internationally.

Snowflake

Fundamentals

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:BTKG.F

1.4%

US Hospitality

1.1%

US Market


1 Year Return

n/a

OTCPK:BTKG.F

-3.6%

US Hospitality

4.7%

US Market

No trading data on BTKG.F.

No trading data on BTKG.F.


Share holder returns

BTKG.FIndustryMarket
7 Day0%1.4%1.1%
30 Day-7.7%3.5%4.3%
90 Dayn/a-1.1%2.9%
1 Yearn/a-1.3%-3.6%7.0%4.7%
3 Year-35.1%-35.1%55.9%46.3%47.4%37.7%
5 Year-48.4%-48.4%41.6%25.8%61.6%43.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

25.91x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

BreadTalk Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

BreadTalk Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

BreadTalk Group is overvalued based on earnings compared to the US Hospitality industry average.

BreadTalk Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

BreadTalk Group is poor value based on expected growth next year.


Price Based on Value of Assets

BreadTalk Group is overvalued based on assets compared to the US Hospitality industry average.


Next Steps

Future Growth

How is BreadTalk Group expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

BreadTalk Group's revenue is expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).

BreadTalk Group's earnings are expected to grow by 16.6% yearly, however this is not considered high growth (20% yearly).

BreadTalk Group's revenue growth is expected to exceed the United States of America market average.

BreadTalk Group's earnings growth is expected to exceed the United States of America market average.

BreadTalk Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

BreadTalk Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has BreadTalk Group performed over the past 5 years?

-1.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

BreadTalk Group's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

BreadTalk Group's 1-year earnings growth exceeds its 5-year average (27.1% vs -1.8%)

BreadTalk Group's earnings growth has exceeded the US Hospitality industry average in the past year (27.1% vs -0.5%).


Return on Equity

BreadTalk Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

BreadTalk Group used its assets less efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

BreadTalk Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

  • Explore strong past performing companies in the consumer services industry.

Financial Health

How is BreadTalk Group's financial position?


Financial Position Analysis

BreadTalk Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

BreadTalk Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

BreadTalk Group's level of debt (141.8%) 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 (171.8% vs 141.8% today).

Debt is well covered by operating cash flow (35.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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

3.01%

Expected Dividend Yield


Dividend Yield and Payments Analysis

BreadTalk Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).

BreadTalk Group's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Henry Chu

2.0yrs

Tenure

Mr. Heng Hwee Chu, also known as Henry, serves as Group Chief Executive Officer since July 01, 2017 & had been Group Managing Director of BreadTalk Group Limited since October 17, 2017. Mr. Chu served as t ...


Management Age and Tenure

4.1yrs

Average Tenure

52yo

Average Age

The tenure for the BreadTalk Group management team is about average.


Board Age and Tenure

12.9yrs

Average Tenure

62yo

Average Age

The average tenure for the BreadTalk Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • George Quek (62yo)

    Founder & Group Chairman

  • Ying-Jian Chan (36yo)

    Group Chief Financial Officer

    • Tenure: 4.1yrs
  • Xiao Feng Hu

    Chief Operating Officer of China

  • Glenn Huang

    Group Vice-President of Corporate Affairs & Communications

  • Vincent Ho

    Group Senior Vice President of Information Technology

  • Wing Chan

    Head of Group Human Resources

  • Henry Chu

    Group CEO & Group MD

    • Tenure: 2.0yrs
  • Leong Ruth

    Group Legal Counsel

  • Frankie Quek (52yo)

    Chief Executive Officer of ASEAN Region

  • William Cheng

    Chief Executive Officer of Restaurant Division

    • Tenure: 8.5yrs

Board Members

  • George Quek (62yo)

    Founder & Group Chairman

  • Katherine Lee (54yo)

    Deputy Chairman

    • Tenure: 13.1yrs
  • Kian Min Ong (56yo)

    Lead Independent Non-Executive Director

  • Khee Giap Tan (62yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
  • Soo Sen Chan (63yo)

    Independent Non-Executive Director

    • Tenure: 12.9yrs

Company Information

BreadTalk Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BreadTalk Group Limited
  • Ticker: BTKG.F
  • Exchange: OTCPK
  • Founded: 2000
  • Industry: restaurants
  • Sector: consumer services
  • Market Cap: S$397.452m
  • Listing Market Cap: S$292.983m
  • Shares outstanding: 563.76m
  • Website: Click here

Number of Employees


Location

  • BreadTalk Group Limited
  • No. 09-01 BreadTalk IHQ
  • 30 Tai Seng Street
  • Singapore
  • 534013
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BTKG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2003
CTNSGX (Singapore Exchange)YesOrdinary SharesSGSGDJun 2003

Biography

BreadTalk Group Limited, an investment holding company, engages in bakery, food court, restaurant, and food and beverage businesses in Singapore, Mainland China, Hong Kong, Taiwan, Southeast Asia, and inte ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/15 23:56
End of Day Share Price2019/07/02 00:00
Earnings2019/03/31
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.