Super Hi International Holding Ltd. (NASDAQ: HDL)

Sector: Consumer Cyclical Industry: Restaurants CIK: 0001995306
Market Cap 721.74 Mn
P/B 1.90
P/E 35.00
P/S 0.88
ROIC (Qtr) 4.15
Div Yield % 0.00
Rev 1y % (Qtr) 7.77
Total Debt (Qtr) 221.48 Mn
Debt/Equity (Qtr) 0.58
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About

Investment thesis

Bull case

  • Strong operating cash flow of 111.43M provides robust 0.50x coverage of total debt 221.48M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 217.77M provide 5.12x coverage of short-term debt 42.52M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 111.43M provides exceptional 10.28x coverage of interest expenses 10.84M, showing strong debt service capability.
  • Strong operating cash flow of 111.43M provides 15.32x coverage of SG&A expenses 7.27M, showing efficient operational cost management.
  • Tangible assets of 340.46M provide exceptional 25.63x coverage of deferred revenue 13.28M, showing strong service capability backing.

Bear case

  • Operating cash flow of 111.43M barely covers its investment activities of (57.26M), with a coverage ratio of -1.95, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 111.43M barely covers operating expenses of 164.62M with a 0.68 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Operating cash flow of 111.43M shows concerning coverage of minority interest expenses of (365000), which is -305.29x, suggesting complex corporate structure risks.
  • Tax assets of 4.82M provide limited offset against tax liabilities of 10.79M, which is 0.45x, indicating potential future cash flow pressure from tax obligations.
  • Other non-current assets of 26.87M provide minimal coverage for long-term debt of 178.96M, which is 0.15x, indicating potential asset-liability mismatch.

Geographical areas [axis] Breakdown of Revenue (2024)

Products and services [axis] Breakdown of Revenue (2024)

Peer comparison

Companies in the Restaurants
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MCD Mcdonalds Corp 346.46 Bn 68.40 14.10 55.82 Bn
2 SBUX Starbucks Corp 139.76 Bn 47.22 6.36 25.47 Bn
3 CMG Chipotle Mexican Grill Inc 50.59 Bn 32.94 4.24 5.08 Bn
4 YUM Yum Brands Inc 45.22 Bn 31.73 5.84 11.55 Bn
5 DRI Darden Restaurants Inc 28.92 Bn 43.38 4.50 6.41 Bn
6 QSR Restaurant Brands International Inc. 22.20 Bn 24.07 2.40 15.64 Bn
7 DPZ Dominos Pizza Inc 21.88 Bn 221.01 13.28 -
8 YUMC Yum China Holdings, Inc. 20.52 Bn 22.69 1.77 1.84 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.99 2.21
EV to Cash from Ops. EV/CFO 6.09 312.98
EV to Debt EV to Debt 3.06 5.62
EV to EBIT EV/EBIT 15.57 3.91
EV to EBITDA EV/EBITDA 5.53 21.20
EV to Free Cash Flow [EV/FCF] EV/FCF 8.83 45.95
EV to Market Cap EV to Market Cap 0.94 2.53
EV to Revenue EV/Rev 0.83 3.79
Price to Book Value [P/B] P/B 1.90 0.71
Price to Earnings [P/E] P/E 35.00 29.80
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -9.75
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 21.96
Dividend per Basic Share Div per Share (Qtr) 0.00 0.94
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 34.43
Interest Coverage Int. cover (Qtr) 4.02 -92.90
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -11.60 -26.40
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1.21 32.62
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 3.33
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -56.87 -129.85
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 -17.63
EBIT Growth (1y) % EBIT 1y % (Qtr) -42.67 6.64
EBT Growth (1y) % EBT 1y % (Qtr) -51.61 -48.75
EPS Growth (1y) % EPS 1y % (Qtr) -44.44 -142.91
FCF Growth (1y) % FCF 1y % (Qtr) -12.78 11.75
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.72 24.30
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 2.41 1.02
Cash Payout Ratio Cash Payout Ratio 0.00 0.09
Cash Ratio Cash Ratio (Qtr) 1.62 0.80
Current Ratio Curr Ratio (Qtr) 1.89 1.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.58 0.61
Interest Cover Ratio Int Coverage (Qtr) 4.02 -92.90
Times Interest Earned Times Interest Earned (Qtr) 4.02 -92.90
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 8.16
EBIT Margin % EBIT Margin % (Qtr) 5.32 -2.09
EBT Margin % EBT Margin % (Qtr) 3.99 -0.93
Gross Margin % Gross Margin % (Qtr) 26.20 34.54
Net Profit Margin % Net Margin % (Qtr) 2.50 -2.80