OTCPK:DBMX.F

Stock Analysis Report

Executive Summary

FibraHotel is a Mexican trust created primarily to acquire, develop and operate hotels in Mexico.

Rewards

Trading at 60.7% below its fair value

Earnings are forecast to grow 12.97% per year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Profit margins (10.1%) are lower than last year (16.3%)

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued average dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

DBMX.F

0.9%

US REITs

0.6%

US Market


1 Year Return

-9.5%

DBMX.F

18.9%

US REITs

24.6%

US Market

Return vs Industry: DBMX.F underperformed the US REITs industry which returned 17.9% over the past year.

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


Shareholder returns

DBMX.FIndustryMarket
7 Day0%0.9%0.6%
30 Dayn/a3.9%3.0%
90 Dayn/a0.1%10.6%
1 Year-9.5%-9.5%23.8%18.9%27.3%24.6%
3 Year-33.4%-33.4%35.5%18.4%50.5%40.8%
5 Year-64.8%-64.8%46.8%16.5%78.9%59.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is FibraHotel 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: DBMX.F ($0.47) is trading below our estimate of fair value ($1.19)

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


Price To Earnings Ratio

PE vs Industry: DBMX.F is good value based on its PE Ratio (16.4x) compared to the REITs industry average (37.8x).

PE vs Market: DBMX.F is good value based on its PE Ratio (16.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: DBMX.F is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: DBMX.F is good value based on its PB Ratio (0.5x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is FibraHotel forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DBMX.F's forecast earnings growth (13% per year) is above the savings rate (1.7%).

Earnings vs Market: DBMX.F's earnings (13% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: DBMX.F's revenue (4.5% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: DBMX.F's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DBMX.F's Return on Equity is forecast to be low in 3 years time (3.5%).


Next Steps

Past Performance

How has FibraHotel performed over the past 5 years?

21.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DBMX.F has a large one-off gain of MX$101.9M impacting its September 30 2019 financial results.

Growing Profit Margin: DBMX.F's current net profit margins (10.1%) are lower than last year (16.3%).


Past Earnings Growth Analysis

Earnings Trend: DBMX.F's earnings have grown significantly by 21.8% per year over the past 5 years.

Accelerating Growth: DBMX.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: DBMX.F had negative earnings growth (-32.4%) over the past year, making it difficult to compare to the REITs industry average (8.1%).


Return on Equity

High ROE: DBMX.F's Return on Equity (3.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is FibraHotel's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: DBMX.F's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: DBMX.F's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if DBMX.F has a sufficient allowance for bad loans.

Low Risk Liabilities: DBMX.F reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if DBMX.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: DBMX.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if DBMX.F has an appropriate level of bad loans.


Next Steps

Dividend

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

11.14%

Current Dividend Yield


Dividend Yield vs Market

company11.1%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years10.4%

Current dividend yield vs market & industry

Notable Dividend: DBMX.F's dividend (12.02%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: DBMX.F's dividend (12.02%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: DBMX.F has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: DBMX.F's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.6%), DBMX.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DBMX.F's dividends in 3 years are forecast to be thoroughly covered by earnings (0.09% payout ratio).


Next Steps

Management

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


CEO

Eduardo López García 0

0yrs

Tenure

0

Mr. Eduardo López García serves as Chief Executive Officer of Fibra Hotelera S.C., the Administrator of Concentradora Fibra Hotelera Mexicana, S.A. de C.V. and FibraHotel. Mr. García is Managing Director o ...


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 40.8%.


Management Team

  • Eduardo López García

    MD & CEO of Fibra Hotelera S.C.

    • Edouard Boudrant

      Chief Financial Officer of Fibrahotelera S.C.

      • Guillermo Bravo Escobosa

        Chief Investment Officer

        • Claudia Lorena García Núñez

          Legal Counsel

          • José Luis Jácome Herrera

            Resort Portfolio Asset Management Director

            • César Chávez Gonzalez

              Full Service & Marriott Portfolio Asset Management Director

              • Isaac Aguilar

                Limited & Selected Service Portfolio Asset Management Director


                Board Members

                • Manuel Zepeda Payeras (73yo)

                  Technical Committee Member

                  • Jaime E. Zabludowsky Kuper (63yo)

                    Technical Committee Member

                    • Felipe De Iturbe y Bernal (73yo)

                      Technical Committee Member

                      • Simón Galante Zaga (47yo)

                        Technical Committee Member

                        • Roberto Galante Totah (83yo)

                          Technical Committee Member

                          • Alberto Galante Zaga (57yo)

                            Technical Committee Member

                            • Adolfo Benjamín Fastlicht Kurián (52yo)

                              Technical Committee Member

                              • Albert Saadia (61yo)

                                Technical Committee Member

                                • Mayer Zaga Bucay (63yo)

                                  Technical Committee Member

                                  • Pablo de la Peza Berríos

                                    Technical Committee Member

                                    Company Information

                                    FibraHotel's company bio, employee growth, exchange listings and data sources


                                    Key Information

                                    • Name: FibraHotel
                                    • Ticker: DBMX.F
                                    • Exchange: OTCPK
                                    • Founded: 2012
                                    • Industry: Hotel and Resort REITs
                                    • Sector: Real Estate
                                    • Market Cap: Mex$7.441b
                                    • Listing Market Cap: Mex$398.215m
                                    • Shares outstanding: 785.72m
                                    • Website: https://www.fibrahotel.com

                                    Location

                                    • FibraHotel
                                    • Torre Corporativo World Plaza
                                    • Avenida Santa Fe No. 481-Piso 7
                                    • Mexico City
                                    • Distrito Federal
                                    • 5349
                                    • Mexico

                                    Listings

                                    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                                    DBMX.FOTCPK (Pink Sheets LLC)YesCBFI CertificatesUSUSDDec 2012
                                    FIHO 12BMV (Bolsa Mexicana de Valores)YesCBFI CertificatesMXMXNDec 2012

                                    Biography

                                    FibraHotel is a Mexican trust created primarily to acquire, develop and operate hotels in Mexico. Our objective is to provide attractive returns to our CBFI holders through stable cash distributions and the appreciation of our real estate assets. Also, we will aim to have a high quality hotel portfolio, through the affiliation to different hotel brands and renowned operators, as well as geographic and segment diversification. 


                                    Company Analysis and Financial Data Status

                                    All financial data provided by Standard & Poor's Capital IQ.
                                    DataLast Updated (UTC time)
                                    Company Analysis2020/01/23 00:47
                                    End of Day Share Price2020/01/14 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.