Th International Intrinsic Value Calculator – TH INTERNATIONAL Reports Third Quarter Earnings Results for 2023
November 21, 2023
🌥️Earnings Overview
On November 15, 2023, TH INTERNATIONAL ($NASDAQ:THCH) announced its earnings results for the third quarter of fiscal year 2023. Total revenue was CNY 436.4 million, representing an increase of 42.7% year-over-year. Compared to the same period in the prior year, net income was CNY -160.6 million, compared to -194.4 million.
Market Price
The company opened its stock at $1.7 and closed at the same price, marking a decrease of 3.3% from the previous closing price of $1.8. Analysts are pointing towards a variety of factors that may have contributed to the lower-than-expected earnings results, including increasing competition, higher costs associated with operating expenses, and a decrease in consumer demand for the company’s products and services. The company has responded by implementing a series of cost-saving measures to help improve their bottom line. These include reducing staff, outsourcing certain operations, and streamlining administrative processes.
The company is also investing in new product and service offerings to help boost sales and engage with customers more effectively. Overall, it is clear that TH INTERNATIONAL still has some work to do if it wants to see a return to its former levels of success. Investors will be watching closely as the company continues to adjust and implement new strategies to help improve their bottom line. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Th International. More…
| Total Revenues | Net Income | Net Margin |
| 1.49k | -788.03 | -40.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Th International. More…
| Operations | Investing | Financing |
| -211.67 | 34.2 | 237.52 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Th International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.61k | 2.75k | -0.93 |
Key Ratios Snapshot
Some of the financial key ratios for Th International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 160.4% | – | -51.6% |
| FCF Margin | ROE | ROA |
| -36.8% | 759.2% | -18.4% |
Analysis – Th International Intrinsic Value Calculator
At GoodWhale, we have recently analysed the fundamentals of TH INTERNATIONAL. Our proprietary Valuation Line has determined that the fair value of TH INTERNATIONAL share is around $3.6. Interestingly, its stock is currently being traded at $1.7, which undervalues the company by 53.1%. This presents an excellent opportunity for potential investors to purchase TH INTERNATIONAL stock at a discounted price. Our analysis of TH INTERNATIONAL’s fundamentals has highlighted its potential as a long-term investment, and we recommend potential investors to take advantage of this valuable opportunity. More…
Peers
The competition between TH International Ltd and its competitors, Restaurant Brands International Inc, Yum China Holdings Inc and Starbucks Corp, is fierce as these four companies strive to gain the competitive edge in the global market. Each company is leveraging their brand recognition and offerings to draw in customers and establish a foothold in their respective markets. The competition has heated up in recent years as new products are released and each company strives to be the best in the business.
– Restaurant Brands International Inc ($TSX:QSR)
Restaurant Brands International Inc is a global restaurant company that owns, operates, and franchises some of the world’s most iconic food and beverage brands. As of 2023, the company has a market cap of 27.61 billion dollars and a Return on Equity (ROE) of 48.76%, reflecting its successful strategies and strong financial performance. Market cap is the total market value of a company’s outstanding shares, while the ROE is an indicator of the efficiency with which a company is using its assets to generate profits. A high ROE indicates that the company is using its assets to generate higher returns, which can be beneficial for shareholders. Restaurant Brands International Inc’s large market cap and impressive ROE suggest that it has a very successful business model and financial situation.
– Yum China Holdings Inc ($NYSE:YUMC)
Yum China Holdings Inc is a multinational fast food company specializing in quick service restaurant brands. As of 2023, Yum China has a market capitalization of 26.16 billion USD, making it one of the largest restaurant companies in the world. Yum China also has a Return on Equity of 6.38%, suggesting that the company is able to generate returns on investments made through equity financing. This strong financial performance indicates that the company is able to deliver good returns to its shareholders.
– Starbucks Corp ($NASDAQ:SBUX)
Starbucks Corp is a global coffee company and coffeehouse chain. It is the largest coffeehouse chain in the world, operating over 30,000 stores in more than 70 countries. As of 2023, Starbucks has a massive market cap of 120.31B. This market cap reflects the company’s success in providing high-quality products and services to customers around the world. Despite its impressive market cap, the company has seen a negative return on equity (ROE) of -34.53%, which is an indicator that the company’s investments have not been as successful as hoped.
Summary
TH International released its third quarter fiscal 2023 earnings results on November 15, 2023 reporting an impressive 42.7% year-over-year increase in total revenue to CNY 436.4 million. Net income for the quarter was CNY -160.6 million, significantly better than the -194.4 million experienced during the same period of the prior year. Despite this, the stock price dropped on the same day.
Investors appear to be focused on the company’s performance rather than the overall improvement in its financials. Going forward, investors should watch for trends in the company’s financial performance, as well as any news related to management or strategy changes that could affect future performance.
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