GAMEHOST INC (GH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:GH - CA36468B1040 - Common Stock
11.82 CAD
+0.01 (+0.08%)
GH gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 19 industry peers in the Hotels, Restaurants & Leisure industry. GH has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GH is cheap, but on the other hand it scores bad on growth. These ratings could make GH a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- In the past year GH was profitable.
- In the past year GH had a positive cash flow from operations.
- GH had positive earnings in each of the past 5 years.
- Each year in the past 5 years GH had a positive operating cash flow.
1.2 Ratios
- GH has a better Return On Assets (11.95%) than 100.00% of its industry peers.
- GH has a Return On Equity of 17.87%. This is amongst the best in the industry. GH outperforms 89.47% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.46%, GH belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for GH is above the industry average of 8.63%.
- The 3 year average ROIC (12.99%) for GH is below the current ROIC(14.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.95% | ||
| ROE | 17.87% | ||
| ROIC | 14.46% |
ROA(3y)9.95%
ROA(5y)7.17%
ROE(3y)16.26%
ROE(5y)11.79%
ROIC(3y)12.99%
ROIC(5y)9.72%
1.3 Margins
- GH's Profit Margin of 25.02% is amongst the best of the industry. GH outperforms 89.47% of its industry peers.
- In the last couple of years the Profit Margin of GH has remained more or less at the same level.
- GH has a Operating Margin of 34.99%. This is amongst the best in the industry. GH outperforms 89.47% of its industry peers.
- GH's Operating Margin has been stable in the last couple of years.
- GH has a Gross Margin (40.26%) which is in line with its industry peers.
- GH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.99% | ||
| PM (TTM) | 25.02% | ||
| GM | 40.26% |
OM growth 3Y5.22%
OM growth 5Y0.6%
PM growth 3Y12.36%
PM growth 5Y1.17%
GM growth 3Y15.87%
GM growth 5Y0.37%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GH is creating value.
- Compared to 1 year ago, GH has less shares outstanding
- The number of shares outstanding for GH has been reduced compared to 5 years ago.
- Compared to 1 year ago, GH has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.41 indicates that GH is not in any danger for bankruptcy at the moment.
- GH has a Altman-Z score of 3.41. This is amongst the best in the industry. GH outperforms 89.47% of its industry peers.
- GH has a debt to FCF ratio of 0.92. This is a very positive value and a sign of high solvency as it would only need 0.92 years to pay back of all of its debts.
- The Debt to FCF ratio of GH (0.92) is better than 89.47% of its industry peers.
- A Debt/Equity ratio of 0.27 indicates that GH is not too dependend on debt financing.
- GH has a better Debt to Equity ratio (0.27) than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | 3.41 |
ROIC/WACC2.01
WACC7.18%
2.3 Liquidity
- GH has a Current Ratio of 1.01. This is a normal value and indicates that GH is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of GH (1.01) is better than 63.16% of its industry peers.
- GH has a Quick Ratio of 1.01. This is a bad value and indicates that GH is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 0.97, GH is doing good in the industry, outperforming 63.16% of the companies in the same industry.
- GH does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
- GH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.82%.
- GH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.01% yearly.
- GH shows a small growth in Revenue. In the last year, the Revenue has grown by 1.01%.
- The Revenue has been growing slightly by 3.92% on average over the past years.
EPS 1Y (TTM)6.82%
EPS 3Y56.85%
EPS 5Y8.01%
EPS Q2Q%4.07%
Revenue 1Y (TTM)1.01%
Revenue growth 3Y35.25%
Revenue growth 5Y3.92%
Sales Q2Q%-0.84%
3.2 Future
- The Earnings Per Share is expected to grow by 3.58% on average over the next years.
- Based on estimates for the next years, GH will show a small growth in Revenue. The Revenue will grow by 0.18% on average per year.
EPS Next Y7.29%
EPS Next 2Y3.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.6%
Revenue Next 2Y0.18%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 11.82, which indicates a very decent valuation of GH.
- Compared to the rest of the industry, the Price/Earnings ratio of GH indicates a rather cheap valuation: GH is cheaper than 84.21% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of GH to the average of the S&P500 Index (27.21), we can say GH is valued rather cheaply.
- GH is valuated reasonably with a Price/Forward Earnings ratio of 11.14.
- Based on the Price/Forward Earnings ratio, GH is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of GH to the average of the S&P500 Index (24.26), we can say GH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 11.14 |
4.2 Price Multiples
- 73.68% of the companies in the same industry are more expensive than GH, based on the Enterprise Value to EBITDA ratio.
- 94.74% of the companies in the same industry are more expensive than GH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.01 | ||
| EV/EBITDA | 8.24 |
4.3 Compensation for Growth
- GH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of GH may justify a higher PE ratio.
PEG (NY)1.62
PEG (5Y)1.48
EPS Next 2Y3.58%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.05%, GH is a good candidate for dividend investing.
- GH's Dividend Yield is a higher than the industry average which is at 2.39.
- GH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.05% |
5.2 History
- The dividend of GH decreases each year by -6.63%.
- GH has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of GH decreased in the last 3 years.
Dividend Growth(5Y)-6.63%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 58.14% of the earnings are spent on dividend by GH. This is a bit on the high side, but may be sustainable.
DP58.14%
EPS Next 2Y3.58%
EPS Next 3YN/A
GAMEHOST INC / GH.CA FAQ
What is the ChartMill fundamental rating of GAMEHOST INC (GH.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to GH.CA.
What is the valuation status for GH stock?
ChartMill assigns a valuation rating of 8 / 10 to GAMEHOST INC (GH.CA). This can be considered as Undervalued.
What is the profitability of GH stock?
GAMEHOST INC (GH.CA) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for GH stock?
The Price/Earnings (PE) ratio for GAMEHOST INC (GH.CA) is 11.82 and the Price/Book (PB) ratio is 2.09.
Can you provide the financial health for GH stock?
The financial health rating of GAMEHOST INC (GH.CA) is 9 / 10.