OTCPK:JBFC.F

Stock Analysis Report

Executive Summary

Jollibee Foods Corporation, doing business as Jollibee, together with its subsidiaries, develops, operates, and franchises quick service restaurants.


Snowflake Analysis

Mediocre balance sheet second-rate dividend payer.

Share Price & News

How has Jollibee Foods's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

3.5%

JBFC.F

-5.4%

US Hospitality

-1.2%

US Market


1 Year Return

-30.8%

JBFC.F

12.4%

US Hospitality

22.3%

US Market

Return vs Industry: JBFC.F underperformed the US Hospitality industry which returned 20.1% over the past year.

Return vs Market: JBFC.F underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

JBFC.FIndustryMarket
7 Day3.5%-5.4%-1.2%
30 Day-0.4%-2.4%1.6%
90 Day-1.2%7.9%8.8%
1 Year-30.8%-30.8%15.3%12.4%25.0%22.3%
3 Year0.8%0.8%36.6%27.5%49.9%40.3%
5 Year-18.3%-18.3%51.1%35.0%77.6%58.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Jollibee Foods undervalued compared to its fair value and its price relative to the market?

34.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JBFC.F ($4.23) is trading above our estimate of fair value ($2.55)

Significantly Below Fair Value: JBFC.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JBFC.F is poor value based on its PE Ratio (34.1x) compared to the Hospitality industry average (25.1x).

PE vs Market: JBFC.F is poor value based on its PE Ratio (34.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: JBFC.F is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: JBFC.F is overvalued based on its PB Ratio (4.5x) compared to the US Hospitality industry average (2.4x).


Next Steps

Future Growth

How is Jollibee Foods forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JBFC.F's forecast earnings growth (13.7% per year) is above the savings rate (1.7%).

Earnings vs Market: JBFC.F's earnings (13.7% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: JBFC.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: JBFC.F's revenue (14.1% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: JBFC.F's revenue (14.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JBFC.F's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Jollibee Foods performed over the past 5 years?

9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JBFC.F has a large one-off gain of PHP4.4B impacting its September 30 2019 financial results.

Growing Profit Margin: JBFC.F's current net profit margins (4%) are lower than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: JBFC.F's earnings have grown by 9.5% per year over the past 5 years.

Accelerating Growth: JBFC.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JBFC.F had negative earnings growth (-16.2%) over the past year, making it difficult to compare to the Hospitality industry average (-18.9%).


Return on Equity

High ROE: JBFC.F's Return on Equity (12.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Jollibee Foods's financial position?


Financial Position Analysis

Short Term Liabilities: JBFC.F's short term assets (PHP44.6B) do not cover its short term liabilities (PHP57.4B).

Long Term Liabilities: JBFC.F's short term assets (PHP44.6B) exceed its long term liabilities (PHP29.9B).


Debt to Equity History and Analysis

Debt Level: JBFC.F's debt to equity ratio (84.7%) is considered high.

Reducing Debt: JBFC.F's debt to equity ratio has increased from 19.8% to 84.7% over the past 5 years.

Debt Coverage: JBFC.F's debt is well covered by operating cash flow (25.8%).

Interest Coverage: JBFC.F's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet

Inventory Level: JBFC.F has a high level of physical assets or inventory.

Debt Coverage by Assets: JBFC.F's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Jollibee Foods's current dividend yield, its reliability and sustainability?

1.19%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: JBFC.F's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: JBFC.F's dividend (1.22%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: JBFC.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: JBFC.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.4%), JBFC.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JBFC.F's dividends in 3 years are forecast to be well covered by earnings (35% payout ratio).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Ernesto Tanmantiong (61yo)

6yrs

Tenure

0

Mr. Ernesto Tanmantiong has been the Chief Executive Officer and President of Jollibee Foods Corp. since January 1, 2014. Mr. Tanmantiong served as Chief Operating Officer of Jollibee Foods Corp. from Janu ...


Management Age and Tenure

6.0yrs

Average Tenure

53yo

Average Age

Experienced Management: JBFC.F's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

16.8yrs

Average Tenure

67.5yo

Average Age

Experienced Board: JBFC.F's board of directors are seasoned and experienced ( 16.8 years average tenure).


Insider Trading

Insider Buying: JBFC.F insiders have only sold shares in the past 3 months.


Recent Insider Transactions

BuyUS$196,57122 Nov 19
Honeyworth Corporation
EntityCompany
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Max PriceUS$3.97
SellUS$27,60208 Nov 19
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Max PriceUS$4.63
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Max PriceUS$4.63
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Poe Chua
EntityIndividual
Role
Member of the Board of Directors
Director
Shares77,170
Max PriceUS$4.56
BuyUS$184,86313 Aug 19
William Untiong
EntityIndividual
Role
Member of the Board of Directors
Chief Real Estate Executive
Shares53,333
Max PriceUS$3.47
BuyUS$19,25013 Aug 19
Artemio Panganiban
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Role
Member of the Board of Directors
Director
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Max PriceUS$4.50
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Honeyworth Corporation
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Honeyworth Corporation
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Shares60,000
Max PriceUS$5.88
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Ysmael Baysa
EntityIndividual
Role
Chief Financial Officer
CFO, Compliance Officer & VP of Corporate Finance
Shares324,266
Max PriceUS$6.11
BuyUS$649,88607 Feb 19
Ysmael Baysa
EntityIndividual
Role
Chief Financial Officer
CFO, Compliance Officer & VP of Corporate Finance
Shares324,266
Max PriceUS$2.01
SellUS$1,486,73101 Feb 19
Ysmael Baysa
EntityIndividual
Role
Chief Financial Officer
CFO, Compliance Officer & VP of Corporate Finance
Shares242,400
Max PriceUS$6.19
BuyUS$485,65701 Feb 19
Ysmael Baysa
EntityIndividual
Role
Chief Financial Officer
CFO, Compliance Officer & VP of Corporate Finance
Shares242,400
Max PriceUS$2.01
SellUS$311,05730 Jan 19
Honeyworth Corporation
EntityCompany
Shares50,000
Max PriceUS$6.24

Ownership Breakdown

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


Management Team

  • Susana Tanmantiong (61yo)

    Chief Procurement Officer

    • Ernesto Tanmantiong (61yo)

      President

      • Tenure: 6yrs
    • Jose Maria Miñana (55yo)

      Head of Foreign Franchised Brands & Country Head of North America - US & Canada

      • Ysmael Baysa (63yo)

        CFO, Compliance Officer & VP of Corporate Finance

        • Daniel Rafael Ramon Gomez (47yo)

          Chief Marketing Officer

          • Valerie Amante (45yo)

            Head of Corporate Legal & Ethics

            • Carl Tan Caktiong (39yo)

              Chairman of JFC China

              • Polly Yang (52yo)

                Head of Corporate Research & Development and VP

                • Tenure: 12yrs
              • Corazon Palomar

                Director of Investor Relations

                • Arsenio Sabado (53yo)

                  Chief Human Resources Officer

                  • Tenure: 1.1yrs

                Board Members

                • Ernesto Tanmantiong (61yo)

                  President

                  • Tenure: 6yrs
                • Antonio Chua (72yo)

                  Director

                  • Tenure: 42yrs
                • Tony Tan (66yo)

                  Chairman of the Board

                  • Tenure: 6yrs
                • Monico Jacob (74yo)

                  Lead Independent Director

                  • Tenure: 1.6yrs
                • William Untiong (66yo)

                  Chief Real Estate Executive

                  • Tenure: 27yrs
                • Cho Ang (69yo)

                  Director

                  • Tenure: 42yrs
                • Ngo Chiong Ang (96yo)

                  Chairman Emeritus

                  • Tenure: 24yrs
                • Bong Consing (60yo)

                  Independent Director

                  • Tenure: 9.6yrs
                • Artemio Panganiban (83yo)

                  Director

                  • Tenure: 7.6yrs
                • Joseph Tanbuntiong (56yo)

                  Treasurer

                  • Tenure: 7yrs

                Company Information

                Jollibee Foods Corporation's company bio, employee growth, exchange listings and data sources


                Key Information

                • Name: Jollibee Foods Corporation
                • Ticker: JBFC.F
                • Exchange: OTCPK
                • Founded: 1975
                • Industry: Restaurants
                • Sector: Consumer Services
                • Market Cap: ₱238.072b
                • Listing Market Cap: ₱4.684b
                • Shares outstanding: 1.10b
                • Website: https://www.jollibee.com.ph

                Number of Employees


                Location

                • Jollibee Foods Corporation
                • Jollibee Plaza Building
                • 10th Floor
                • Pasig City
                • 1605
                • Philippines

                Listings

                TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                JBFC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 1994
                JFCPSE (Philippines Stock Exchange)YesCommon SharesPHPHPFeb 1994
                JBFC.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMay 2012

                Biography

                Jollibee Foods Corporation, doing business as Jollibee, together with its subsidiaries, develops, operates, and franchises quick service restaurants. The company operates quick service restaurants under the Jollibee, Chowking, Greenwich, Red Ribbon, Yong He King, Hong Zhuang Yuan, Mang Inasal, Burger King, Highlands Coffee, Pho24, Hard Rock Cafe, Dunkin’ Donuts, Smashburger, Tim Ho Wan, and Tortas Frontera names. As of December 20, 2019, it operated approximately 5,800 stores in the Philippines, the United States, Canada, the People’s Republic of China, Hong Kong, Macau, the United Kingdom, Italy, Vietnam, Brunei, Singapore, Saudi Arabia, the United Arab Emirates, Qatar, Oman, Kuwait, Bahrain, Indonesia, Costa Rica, Egypt, El Salvador, Panama, and Malaysia. The company also offers property leasing, manufacturing, digital printing, advertising, financial accounting, human resources and logistics, business management, and other services. Jollibee Foods Corporation was founded in 1975 and is headquartered in Pasig City, the Philippines. 


                Company Analysis and Financial Data Status

                All financial data provided by Standard & Poor's Capital IQ.
                DataLast Updated (UTC time)
                Company Analysis2020/01/26 23:53
                End of Day Share Price2020/01/24 00:00
                Earnings2019/09/30
                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.