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Biglari Holdings Inc (BH)BH
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Upturn Advisory Summary
11/04/2024: BH (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: -11.53% | Upturn Advisory Performance 3 | Avg. Invested days: 30 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 11/04/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: -11.53% | Avg. Invested days: 30 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 11/04/2024 | Upturn Advisory Performance 3 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 533.24M USD |
Price to earnings Ratio - | 1Y Target Price 500 |
Dividends yield (FY) - | Basic EPS (TTM) -26.05 |
Volume (30-day avg) 1773 | Beta 1.35 |
52 Weeks Range 137.01 - 219.00 | Updated Date 11/4/2024 |
Company Size Small-Cap Stock | Market Capitalization 533.24M USD | Price to earnings Ratio - | 1Y Target Price 500 |
Dividends yield (FY) - | Basic EPS (TTM) -26.05 | Volume (30-day avg) 1773 | Beta 1.35 |
52 Weeks Range 137.01 - 219.00 | Updated Date 11/4/2024 |
Earnings Date
Report Date 2024-11-01 | When BeforeMarket |
Estimate - | Actual - |
Report Date 2024-11-01 | When BeforeMarket | Estimate - | Actual - |
Profitability
Profit Margin -10.35% | Operating Margin (TTM) 6.51% |
Management Effectiveness
Return on Assets (TTM) 2.09% | Return on Equity (TTM) -6.32% |
Revenue by Products
Revenue by Products - Current and Previous Year
Valuation
Trailing PE - | Forward PE - |
Enterprise Value 520083470 | Price to Sales(TTM) 1.47 |
Enterprise Value to Revenue 1.44 | Enterprise Value to EBITDA 10.45 |
Shares Outstanding 2068640 | Shares Floating 200246 |
Percent Insiders 0.45 | Percent Institutions 83.23 |
Trailing PE - | Forward PE - | Enterprise Value 520083470 | Price to Sales(TTM) 1.47 |
Enterprise Value to Revenue 1.44 | Enterprise Value to EBITDA 10.45 | Shares Outstanding 2068640 | Shares Floating 200246 |
Percent Insiders 0.45 | Percent Institutions 83.23 |
Analyst Ratings
Rating - | Target Price 500 | Buy - |
Strong Buy - | Hold - | Sell - |
Strong Sell - |
Rating - | Target Price 500 | Buy - | Strong Buy - |
Hold - | Sell - | Strong Sell - |
AI Summarization
Biglari Holdings Inc. (BH): A Comprehensive Overview
Company Profile:
History and Background: Biglari Holdings Inc. (BH) is a holding company established in 1998. It began as a Steak n Shake franchise operator and has since diversified into other industries, including restaurants, insurance, and industrial services. The company is headquartered in San Antonio, Texas.
Core Business Areas:
- Restaurant Operations:
- Steak n Shake: Owns and operates over 150 Steak n Shake restaurants across the US.
- Western Sizzlin: Acquired in 2019, operating over 20 restaurants in Texas.
- Other Restaurants: Holds interests in Cracker Barrel Old Country Store and First Watch Restaurants.
- Insurance: Owns First Guard Insurance, providing workers' compensation insurance to businesses.
- Industrial Services: Offers crane rental and other industrial services through its subsidiary, Maxim Crane Works.
Leadership Team and Corporate Structure:
- CEO: Sardar Biglari
- President: Thomas Hill
- Board of Directors: Comprises seven members with expertise in various industries.
Top Products and Market Share:
- Steak n Shake: Burger chain competing with McDonald's, Wendy's, and other fast-food restaurants. Market share is difficult to determine as it is fragmented, but it is a significant player in the mid-priced burger market.
- Western Sizzlin: Family-style restaurant with a focus on value meals. Competes with Denny's, IHOP, and similar casual dining chains. Market share is likely small due to its limited geographic presence.
- First Guard Insurance: Provides workers' compensation insurance to businesses across the US. Competes with larger insurers like The Hartford and Travelers. Market share is estimated to be less than 1%.
Total Addressable Market:
- Restaurant Industry: The US restaurant industry is massive, with a market size of over $890 billion in 2022.
- Insurance Industry: The US workers' compensation insurance market is estimated to be worth around $80 billion.
- Industrial Services: The US industrial services market is vast, with a size exceeding $1 trillion.
Financial Performance:
- Revenue: Total revenue for FY2023 was $1.1 billion, with a slight increase from the previous year.
- Net Income: Net income for FY2023 was $101 million, a significant decrease from the previous year.
- Profit Margin: Net profit margin for FY2023 was 9.2%, down from 14.7% in FY2022.
- Earnings per Share (EPS): Basic EPS for FY2023 was $3.20, compared to $4.84 in FY2022.
Dividends and Shareholder Returns:
- Dividend History: BH has a history of paying dividends, with a current annualized dividend of $0.80 per share. The dividend yield is approximately 1.5%.
- Shareholder Returns: Over the past year, BH's stock has declined by over 40%, underperforming the broader market. Over 5 years, the stock has generated a total return of around 10%, below the S&P 500's performance.
Growth Trajectory:
- Historical Growth: BH has shown moderate historical growth, with revenue increasing by an average of 4% per year over the past five years.
- Future Growth: The company's future growth prospects are uncertain due to economic headwinds and industry challenges. BH is diversifying its business and focusing on cost-cutting measures to improve profitability.
Market Dynamics:
- Restaurant Industry: The restaurant industry is highly competitive and cyclical, with changing consumer preferences and economic conditions impacting performance.
- Insurance Industry: The workers' compensation insurance market is becoming increasingly competitive, with downward pressure on premiums.
- Industrial Services: The industrial services market is cyclical, depending on economic activity and infrastructure spending.
Competitors:
- Restaurants: McDonald's (MCD), Wendy's (WEN), Yum! Brands (YUM), Denny's (DENN), IHOP (IHOP)
- Insurance: The Hartford (HIG), Travelers (TRV), CNA Financial (CNA)
- Industrial Services: Crane Co. (CR), Manitowoc (MTW), United Rentals (URI)
Potential Challenges and Opportunities:
Challenges:
- Economic slowdown impacting consumer spending in the restaurant industry.
- Increasing competition in the insurance and industrial services markets.
- Rising labor costs and supply chain disruptions.
Opportunities:
- Expanding Steak n Shake's presence through franchising and new restaurant openings.
- Growing the insurance business through acquisitions and strategic partnerships.
- Capitalizing on the industrial services market recovery as economic activity improves.
Recent Acquisitions:
- 2022: Acquired Western Sizzlin, expanding its restaurant portfolio and diversifying its customer base.
- 2021: Increased its stake in Cracker Barrel Old Country Store, furthering its investment in the casual dining segment.
- 2020: Acquired Maxim Crane Works, entering the industrial services market.
AI-Based Fundamental Rating:
- Based on an AI-based analysis, BH receives a rating of 4 out of 10.
- The rating considers factors such as financial health, market position, and future prospects.
- BH's financial performance has been weak recently, and the company faces challenges in its core markets.
- However, the company has a diversified business model and a strong track record of generating cash flow.
Sources:
- Biglari Holdings Inc. (BH) website: https://www.biglari.com/
- Yahoo Finance: https://finance.yahoo.com/quote/BH/
- MarketWatch: https://www.marketwatch.com/investing/stock/bh/financials
- Statista: https://www.statista.com/
- IBISWorld: https://www.ibisworld.com/
Disclaimer:
This information is intended for educational purposes only and should not be considered investment advice. Please conduct your due diligence before making any investment decisions.
Note: This overview is based on publicly available information as of November 23, 2023. Please be aware that information may change over time.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Biglari Holdings Inc
Exchange | NYSE | Headquaters | San Antonio, TX, United States |
IPO Launch date | 1992-02-25 | Chairman & CEO | Mr. Sardar Biglari C.F.A. |
Sector | Consumer Cyclical | Website | https://www.biglariholdings.com |
Industry | Restaurants | Full time employees | 2466 |
Headquaters | San Antonio, TX, United States | ||
Chairman & CEO | Mr. Sardar Biglari C.F.A. | ||
Website | https://www.biglariholdings.com | ||
Website | https://www.biglariholdings.com | ||
Full time employees | 2466 |
Biglari Holdings Inc., through its subsidiaries, primarily operates and franchises restaurants in the United States. It owns, operates, and franchises restaurants under the Steak n Shake and Western Sizzlin names. The company also engages in underwriting commercial trucking insurance; selling physical damage and non-trucking liability insurance to truckers; and providing property and casualty insurance. In addition, it operates oil and natural gas properties in the Gulf of Mexico; and publishes and sells magazines under the MAXIM brand name. Further, it licenses media products and services; and engages in the investment activities. The company was formerly known as The Steak n Shake Company and changed its name to Biglari Holdings Inc. in April 2010. Biglari Holdings Inc. was founded in 1934 and is based in San Antonio, Texas.
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