AmRest Holdings SE
AmRest Holdings SE Fundamental Analysis
AmRest Holdings SE (ARHOF) shows weak financial fundamentals with a PE ratio of 69.28, profit margin of 0.87%, and ROE of 6.04%. The company generates $2.6B in annual revenue with moderate year-over-year growth of 5.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 15.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ARHOF's fundamental strength across five key dimensions:
Efficiency Score
WeakARHOF struggles to generate sufficient returns from assets.
Valuation Score
ModerateARHOF shows balanced valuation metrics.
Growth Score
ModerateARHOF shows steady but slowing expansion.
Financial Health Score
WeakARHOF carries high financial risk with limited liquidity.
Profitability Score
WeakARHOF struggles to sustain strong margins.
Key Financial Metrics
Is ARHOF Expensive or Cheap?
P/E Ratio
ARHOF trades at 69.28 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ARHOF's PEG of -2.45 indicates potential undervaluation.
Price to Book
The market values AmRest Holdings SE at 4.07 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 0.25 times EBITDA. This is generally considered low.
How Well Does ARHOF Make Money?
Net Profit Margin
For every $100 in sales, AmRest Holdings SE keeps $0.87 as profit after all expenses.
Operating Margin
Core operations generate 4.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.04 in profit for every $100 of shareholder equity.
ROA
AmRest Holdings SE generates $0.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AmRest Holdings SE produces operating cash flow of $392.53M, showing steady but balanced cash generation.
Free Cash Flow
AmRest Holdings SE produces free cash flow of $214.58M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.00 in free cash annually.
FCF Yield
ARHOF converts 13.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
69.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How ARHOF Stacks Against Its Sector Peers
| Metric | ARHOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 69.28 | 24.93 | Worse (Expensive) |
| ROE | 6.04% | 1149.00% | Weak |
| Net Margin | 0.87% | 749.00% | Weak |
| Debt/Equity | 4.15 | 0.76 | Weak (High Leverage) |
| Current Ratio | 0.43 | 9.21 | Weak Liquidity |
| ROA | 0.97% | 1274.00% | Weak |
ARHOF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AmRest Holdings SE's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
42.90%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-85.68%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
37.53%
Industry Style: Cyclical, Growth, Discretionary
High Growth