Guzman y Gomez Ltd GYG

Morningstar Rating
A$38.08 −0.42 (1.09%)
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Company Report

Price vs Fair Value

GYG is trading at a 457% premium.
Price
A$38.08
Fair Value
A$57.00
Uncertainty
High
1-Star Price
A$14.56
5-Star Price
A$7.00
Economic Moat
Jnpl
Capital Allocation
Pxmpbyn

Bulls Say, Bears Say

Bulls

It is early days, but Guzman’s Australian restaurant economics rival that of best-in-class brands KFC and McDonald’s. This is the key metric for a durable, franchisee-driven store rollout.

Bears

Guzman needs to ensure store economics hold up as its ambitious rollout progresses. Overly aggressive expansion could destroy value.

Trading Information

Previous Close Price
A$38.50
Day Range
A$37.7239.42
52-Week Range
A$24.0443.00
Bid/Ask
A$38.01 / A$39.50
Market Cap
A$3.86 Bil
Volume/Avg
178,383 / 278,852

Key Statistics

Price/Earnings (Normalized)
Price/Sales
8.93
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield

Company Profile

Guzman y Gomez is a Mexican-inspired quick-service restaurant operator and franchisor. Most stores are in Australia. Underpinning the company’s growth outlook is an ambitious plan to reach a network of more than 1000 Australian stores over the next 20-plus years. At the end of fiscal 2024, its footprint stood at a around 200. Guzman also has a nascent presence in Singapore and Japan through master franchise agreements and runs a handful of corporate-owned restaurants in the US.
Sector
Consumer Cyclical
Industry
Restaurants
Stock Style Box
Total Number of Employees

Competitors

Valuation

Metric
GYG
CKF
DMP
Price/Earnings (Normalized)
16.8422.93
Price/Book Value
10.902.395.26
Price/Sales
8.930.691.35
Price/Cash Flow
107.035.8413.53
Price/Earnings
GYG
CKF
DMP

Financial Strength

Metric
GYG
CKF
DMP
Quick Ratio
0.460.47
Current Ratio
0.550.85
Interest Coverage
2.933.86
Quick Ratio
GYG
CKF
DMP

Profitability

Metric
GYG
CKF
DMP
Return on Assets (Normalized)
4.31%4.37%
Return on Equity (Normalized)
14.70%21.25%
Return on Invested Capital (Normalized)
6.93%6.41%
Return on Assets
GYG
CKF
DMP

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