Biglari Holdings Inc

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BH : NYSE : Services
$467.0 up 7.75 | 1.69%
Today's Range: 457.09 - 470.0
Avg. Daily Volume: 4800.0
12/07/16 - 4:02 PM ET

Financial Analysis


BIGLARI HOLDINGS INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. BIGLARI HOLDINGS INC has weak liquidity. Currently, the Quick Ratio is 0.92 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 5.50% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)216.73218.44
EBITDA ($mil)15.4715.06
EBIT ($mil)9.68.95
Net Income ($mil)-60.139.3


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)98.1171.5
Total Assets ($mil)993.851066.24
Total Debt ($mil)291.44314.39
Equity ($mil)460.88487.74


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin21.5621.42
EBITDA Margin7.136.89
Operating Margin4.434.1
Sales Turnover0.860.0
Return on Assets-0.660.0
Return on Equity-1.430.0
Debt Q3 FY16 Q3 FY15
Current Ratio1.171.01
Debt/Capital0.390.39
Interest Expense5.245.2
Interest Coverage1.831.72


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)1.211.26
Div / share0.00.0
EPS-49.487.35
Book value / share382.16386.79
Institutional Own % n/a n/a
Avg Daily Volume4681.05447.0

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.20 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 7.47. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, BIGLARI HOLDINGS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BH NM Peers 30.85   BH 7.57 Peers 15.58

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

BH's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

BH is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BH 36.30 Peers 29.37   BH NA Peers 1.56

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

BH is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BH 1.20 Peers 7.47   BH -144.26 Peers 70.73

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

BH is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, BH is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BH 0.64 Peers 2.94   BH 32.97 Peers 4.73

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

BH is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

BH has a sales growth rate that significantly exceeds its peers.

 

 

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