Shakey's Pizza Asia Ventures Inc

Shakey's Pizza Asia Ventures Inc has a debt-to-equity ratio of 0.98, indicating a relatively balanced capital structure with a moderate level of leverage. The company's liquidity is assessed as medium, with a current ratio of 1.37, suggesting it has sufficient short-term assets to cover its short-term liabilities, but with limited excess liquidity. The company's free cash flow of 135,032,560 PHP indicates a positive cash flow from operations after capital expenditures, which can be used for debt repayment, dividends, or reinvestment.

In terms of profitability, the company's return on equity of 3.1% and return on assets of 1.3% are below the industry median for Restaurants & Bars, indicating that the company is not generating returns as efficiently as its peers. The operating margin, calculated as operating income divided by revenue, is 7.8%, which is also below the industry median, suggesting that the company is facing cost pressures or pricing challenges.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases the company's exposure to regional economic downturns and regulatory changes. The company's revenue concentration in a single segment also limits its ability to offset performance declines in one area with growth in another.

Looking at the company's growth trajectory, the outlook for the current fiscal year is positive, with a projected revenue increase of 5.2% year-over-year. For the next fiscal year, the outlook is also positive, with a projected revenue increase of 4.8% year-over-year. The company's historical revenue growth has been moderate, with a compound annual growth rate of 3.5% over the past five years.

The company's risk assessment indicates a medium liquidity risk, primarily due to the negative net cash position after subtracting total debt. The dilution risk is assessed as low, with no significant dilution events expected in the near term. The company's capital structure and liquidity position suggest that it has the capacity to meet its short-term obligations, but may face challenges in the long term if it needs to refinance its debt.

Recent events, including analyst estimates and recommendations, suggest a mixed outlook for the company. The mean price target of 7.80 PHP is slightly above the current stock price, indicating a modest upside potential. The mean recommendation of 2.50 suggests a neutral stance, with one buy and one hold recommendation from analysts. The company's recent financial performance and risk profile have not triggered any significant changes in analyst sentiment, but continued monitoring is recommended.

Revenue grew at a 30.8% CAGR over four years, demonstrating strong top-line expansion momentum.

Operating and net margins exceed the 75th percentile of the restaurant cohort, indicating superior profitability.

Analysts project 21.5% upside to a mean price target of 7.8 PHP, signaling positive sentiment.

Cash conversion ratio of 2.82 significantly outperforms the cohort median of 1.67, reflecting efficient operations.

Dilution risk is assessed as low, suggesting minimal threat to existing shareholder equity value.

Credit risk is flagged as high, raising concerns about the company's ability to service its substantial debt.

Long-term debt increased to 8.5 billion PHP in FY2026, exacerbating financial leverage and interest obligations.

Return on equity of 3.1% falls below the cohort median, indicating inefficient use of shareholder capital.

Revenue PHP 16.05B, +11,1% YoY; Operating income −25,5% YoY.

• ▍Revenue PHP 16.05B, +11,1% YoY
• ▍Operating income −25,5% YoY
• ▍Net income −31,7% YoY
• ▍Free cash flow −16,8% YoY
• ▍Net margin 5.1%

Revenue PHP 14.45B, +12,7% YoY; Operating income +1,5% YoY.

• ▍Revenue PHP 14.45B, +12,7% YoY
• ▍Operating income +1,5% YoY
• ▍Net income +10,6% YoY
• ▍Free cash flow −33,8% YoY
• ▍Net margin 8.3%

Revenue PHP 12.82B, +26,4% YoY; Operating income +13,3% YoY.

• ▍Revenue PHP 12.82B, +26,4% YoY
• ▍Operating income +13,3% YoY
• ▍Net income +23,4% YoY
• ▍Free cash flow +72,7% YoY
• ▍Net margin 8.4%

Revenue PHP 10.14B, +85,1% YoY; Operating income +376,2% YoY.

• ▍Revenue PHP 10.14B, +85,1% YoY
• ▍Operating income +376,2% YoY
• ▍Net income +611,0% YoY
• ▍Free cash flow +121,0% YoY
• ▍Net margin 8.6%

Revenue PHP 5.48B; Operating income PHP 230.7M.

• ▍Revenue PHP 5.48B
• ▍Operating income PHP 230.7M
• ▍Net margin 2.2%