City Lodge Hotels (JSE:CLH) - Share price, News & Analysis

CLH fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

CLH Overview

City Lodge Hotels Limited operates hotels in South Africa and internationally.

Risk Analysis

Earnings have declined by 66% per year over past 5 years

Debt is not well covered by operating cash flow

City Lodge Hotels Competitors

Sun International

JSE:SUI

R7.1b

Price History & Performance

Summary of all time highs, changes and price drops for City Lodge Hotels
Historical stock prices
Current Share Price	R5.29
52 Week High	R2.22
52 Week Low	R5.51
Beta	0.74
1 Month Change	40.32%
3 Month Change	49.44%
1 Year Change	105.84%
3 Year Change	-95.82%
5 Year Change	-96.50%
Change since IPO	-59.31%

Shareholder Returns

	CLH	ZA Hospitality	ZA Market
7D	9.3%	6.3%	1.6%
1Y	105.8%	104.7%	21.3%

Return vs Industry: CLH exceeded the ZA Hospitality industry which returned 104.7% over the past year.

Return vs Market: CLH exceeded the ZA Market which returned 21.3% over the past year.

Price Volatility

Is CLH's price volatile compared to industry and market?
CLH volatility
CLH Beta	0.74
Industry Beta	1.23
Market Beta	1

Stable Share Price: CLH is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CLH's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1985	1,488	Andrew Widegger	https://www.clhg.com

City Lodge Hotels Limited operates hotels in South Africa and internationally. The company operates hotels under the Courtyard, City Lodge, Fairview, Town Lodge, and Road Lodge brand names. It operates 5 Courtyard hotels with 381 rooms; 20 City Lodge hotels with 3,531 rooms; 14 Town Lodge hotels with 1,804 rooms; 22 Road Lodge hotels with 2,059 rooms; and 1 Fairview hotel with 127 rooms.

City Lodge Hotels Fundamentals Summary

How do City Lodge Hotels's earnings and revenue compare to its market cap?
CLH fundamental statistics
Market Cap	R3.19b
Earnings (TTM)	-R804.61m
Revenue (TTM)	R509.99m

6.3x

P/S Ratio

-4.0x

P/E Ratio

Is CLH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CLH income statement (TTM)
Revenue	R509.99m
Cost of Revenue	R570.41m
Gross Profit	-R60.42m
Expenses	R744.19m
Earnings	-R804.61m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-1.33
Gross Margin	-11.85%
Net Profit Margin	-157.77%
Debt/Equity Ratio	79.0%

How did CLH perform over the long term?

See historical performance and comparison

Valuation

Is City Lodge Hotels undervalued compared to its fair value and its price relative to the market?

3.41x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CLH's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CLH's fair value to establish if it is undervalued.

Price To Earnings Ratio

PE vs Industry: CLH is unprofitable, so we can't compare its PE Ratio to the African Hospitality industry average.

PE vs Market: CLH is unprofitable, so we can't compare its PE Ratio to the ZA market.

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: CLH is overvalued based on its PB Ratio (3.4x) compared to the ZA Hospitality industry average (2.7x).

Future Growth

How is City Lodge Hotels forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

46.5%

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 City Lodge Hotels 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.

Past Performance

How has City Lodge Hotels performed over the past 5 years?

-66.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CLH is currently unprofitable.

Growing Profit Margin: CLH is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: CLH is unprofitable, and losses have increased over the past 5 years at a rate of 66% per year.

Accelerating Growth: Unable to compare CLH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CLH is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (23.9%).

Return on Equity

High ROE: CLH has a negative Return on Equity (-85.93%), as it is currently unprofitable.

Financial Health

How is City Lodge Hotels's financial position?

Financial Position Analysis

Short Term Liabilities: CLH's short term assets (ZAR613.5M) exceed its short term liabilities (ZAR373.2M).

Long Term Liabilities: CLH's short term assets (ZAR613.5M) do not cover its long term liabilities (ZAR2.0B).

Debt to Equity History and Analysis

Debt Level: CLH's debt to equity ratio (79%) is considered high.

Reducing Debt: CLH's debt to equity ratio has reduced from 85.9% to 79% over the past 5 years.

Debt Coverage: CLH's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if CLH's interest payments on its debt are well covered by EBIT.

Balance Sheet

Dividend

What is City Lodge Hotels's current dividend yield, its reliability and sustainability?

Dividend Yield vs Market

Notable Dividend: Unable to evaluate CLH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CLH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CLH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CLH's dividend payments have been increasing.

Current Payout to Shareholders

Dividend Coverage: CLH is not paying a notable dividend for the ZA market.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CLH's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.

Next Steps

Explore strong dividend paying companies in the Consumer Services industry.

Management

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

3.5yrs

Average management tenure

CEO

Andrew Widegger (55 yo)

3.25yrs

Tenure

R6,705,000

Compensation

Mr. Andrew Crawford Widegger, CA (SA), has been Chief Executive Officer of City Lodge Hotels Ltd. since July 1, 2018. Mr. Widegger served as Group Financial Director of City Lodge Hotels Ltd.until July 1...

CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD458.54K) is about average for companies of similar size in the ZA market ($USD494.06K).

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

Leadership Team

Experienced Management: CLH's management team is considered experienced (3.5 years average tenure).

Board Members

Experienced Board: CLH's board of directors are considered experienced (5.8 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2021/10/17 17:03
End of Day Share Price	2021/10/15 00:00
Earnings	2021/06/30
Annual Earnings	2021/06/30

Market Cap

7D

1Y

Updated

Data