Guzman y Gomez Ltd. (GYG) AI Stock Analysis

• Market Cap: AU$2.82B
• Dividend Yield: N/A
• Average Volume (3M): 265.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: 26.77%
• EPS Growth: 51.19%
• Country: AU
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Restaurants
• EPS (TTM): 0.07
• Shares Outstanding: 102,667,915
• 10 Day Avg. Volume: 270,119
• 30 Day Avg. Volume: 265,562
• PEG Ratio: 0.00
• Price to Book (P/B): 61.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 512.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$36.27
• Price Target Upside: 31.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 55 Neutral
• Price Target: AU$29.00 ▲(5.45%Upside)

Guzman y Gomez Ltd. scores moderately due to strong revenue growth and improving cash flows but is weighed down by negative earnings and weak technical indicators. The absence of earnings call data and challenging valuation metrics also impact the score.

Guzman y Gomez Ltd. Business Overview & Revenue Model

Company Description

Guzman y Gomez Limited owns, operates, and franchises quick service restaurants in Australia, Singapore, Japan, and the United States. Its restaurants offer Mexican-inspired food in various formats, including drive thru and strips, as well as delivery and catering services. Guzman y Gomez Limited was founded in 2005 and is headquartered in Surry Hills, Australia.

How the Company Makes Money

Guzman y Gomez Ltd. generates revenue primarily through the sale of food and beverages at its restaurant locations. The company employs a franchise model, allowing it to expand its brand presence while minimizing capital expenditure on new locations. Franchisees pay initial franchise fees and ongoing royalties, contributing to GYG's revenue. Additionally, GYG may earn income through catering services, branded merchandise sales, and strategic partnerships with delivery platforms, which help to increase order volume and reach a broader customer base.

Guzman y Gomez Ltd. Financial Statement Overview

Summary

Guzman y Gomez Ltd. exhibits strong revenue growth and improving cash flows. However, profitability challenges persist due to negative EBIT and net income. The balance sheet is stable, with a solid equity position and manageable leverage, but operational improvements are needed to enhance net margins and return on equity.

Income Statement

Guzman y Gomez Ltd. has demonstrated a strong revenue growth with a 40.8% increase YOY. However, the company has faced challenges with profitability as indicated by a negative EBIT and net income. Gross profit margin remains robust at 76%, but the net profit margin is negative, indicating operational challenges.

Balance Sheet

The balance sheet shows a solid equity position with a high equity ratio of 53.5%. The company's debt-to-equity ratio stands at 0.68, reflecting manageable leverage. Despite a significant increase in stockholders' equity, there are potential risks due to the negative net income affecting return on equity.

Cash Flow

The company has shown positive trends in cash flow, with a turnaround in free cash flow from negative to positive. Operating cash flow is strong relative to net income, indicating efficient cash generation. However, high capital expenditures may continue to pressure free cash flow.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	305.38M	364.76M	259.04M	171.79M	119.53M
Gross Profit	224.62M	277.18M	188.62M	126.89M	84.67M
EBITDA	32.29M	33.29M	34.21M	27.08M	18.33M
Net Income	-5.11M	-13.75M	-2.27M	3.90M	3.99M
Balance Sheet
Total Assets	330.51M	661.80M	324.51M	248.43M	210.38M
Cash, Cash Equivalents and Short-Term Investments	13.62M	294.48M	36.50M	54.43M	62.09M
Total Debt	211.07M	239.50M	184.72M	129.93M	115.94M
Total Liabilities	256.53M	307.82M	236.54M	167.33M	144.06M
Stockholders Equity	73.98M	353.98M	87.97M	81.10M	66.32M
Cash Flow
Free Cash Flow	-9.84M	9.31M	-11.53M	-6.76M	7.90M
Operating Cash Flow	31.57M	42.87M	31.13M	19.64M	23.07M
Investing Cash Flow	-41.76M	-311.82M	-48.40M	-31.70M	-17.56M
Financing Cash Flow	-20.60M	254.93M	-651.00K	4.39M	32.22M

Guzman y Gomez Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GYG, the sentiment is Negative. The current price of 27.5 is below the 20-day moving average (MA) of 29.23, below the 50-day MA of 30.86, and below the 200-day MA of 36.32, indicating a bearish trend. The MACD of -0.76 indicates Positive momentum. The RSI at 29.86 is Positive, neither overbought nor oversold. The STOCH value of 14.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:GYG.

Guzman y Gomez Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	56 Neutral	HK$23.97B	4.08	-1.57%	8.88%	0.06%	-64.88%
GYG	55 Neutral	AU$2.82B	―	-1.13%	―	26.77%	51.19%
WOLWF		$24.74B	23.13	32.27%	2.17%	―	―
CLLFF		$722.27M	95.18	2.40%	3.03%	―	―
NNA		€809.25M	6.03	23.27%	6.22%	―	―
RFGPF		$86.32M	16.90	4.31%	―	―	―
EDV	73 Outperform	AU$7.18B	15.65	11.71%	6.23%	1.78%	-11.07%

Guzman y Gomez Ltd. Corporate Events

Guzman y Gomez Unveils Strategic Plans at Macquarie Conference

Guzman y Gomez Limited announced its presentation at the 2025 Macquarie Australia Conference, highlighting its strategic initiatives and future growth plans. This announcement is significant for stakeholders as it underscores the company’s commitment to expanding its market presence and enhancing its competitive positioning in the fast-casual dining industry.

Mitsubishi UFJ Financial Group Ceases Substantial Holding in Guzman Y Gomez

Mitsubishi UFJ Financial Group, Inc. has ceased to be a substantial holder in Guzman Y Gomez Ltd. This change in substantial holding involves various transactions, including purchases and sales of securities by entities controlled by First Sentier Investors Holdings Pty Ltd and Morgan Stanley, affecting the voting securities of the company.

Guzman y Gomez Ltd. Announces Change in Substantial Holding Status

Guzman y Gomez Ltd. has announced a change in its substantial holding status, as a significant holder has ceased to be associated with the company as of April 15, 2025. This change in association could impact the company’s voting securities and potentially alter its strategic direction or stakeholder relationships.

MUFG Acquires Substantial Holding in Guzman y Gomez Ltd.

Guzman y Gomez Ltd. has seen a significant transaction involving its shares, with Morgan Stanley Australia Securities Limited entering into a Block Trade Agreement to sell 2,451,221 fully paid ordinary shares, representing approximately 2.4% of the company’s issued capital. Mitsubishi UFJ Financial Group, Inc. (MUFG) has acquired a substantial holding in Guzman y Gomez Ltd. through its interest in Morgan Stanley, which holds a significant stake in the company. This transaction highlights MUFG’s increased influence within Guzman y Gomez Ltd., potentially impacting its strategic direction and stakeholder interests.

First Sentier Investors Becomes Substantial Holder in Guzman y Gomez Ltd.

Guzman y Gomez Ltd. has announced that First Sentier Investors Holdings Pty Limited has become a substantial holder in the company. This development indicates a significant investment and interest from First Sentier, which is part of the Mitsubishi UFJ Financial Group. The substantial holding, which includes a relevant interest in voting securities, suggests potential influence over company decisions and could impact the company’s strategic direction and stakeholder interests.

Guzman y Gomez Announces Director’s Change in Shareholding

Guzman y Gomez Limited announced a change in director Thomas Cowan’s interest in the company’s securities. The change involved the sale of 2,451,221 ordinary shares by TDM Growth Partners Pty Ltd, generating a gross consideration of $80,645,171. Additionally, 1,581,304 shares previously managed by TDM are now directly managed by the client, indicating a shift in the management of these shares. This adjustment in shareholding may impact the company’s financial structure and stakeholder interests.

Guzman y Gomez Announces Director’s Shareholding Change

Guzman y Gomez Ltd. announced a change in the director’s interest, specifically concerning Hilton Brett. The change involved the disposal of 30,778 ordinary shares through a block trade managed by TDM Growth Partners Pty Ltd, resulting in gross sale proceeds of $1,012,596.20. This transaction reflects a strategic adjustment in the director’s shareholding, potentially impacting the company’s governance and stakeholder interests.

The Capital Group Becomes Substantial Holder in Guzman y Gomez Ltd.

Guzman y Gomez Ltd. has announced that The Capital Group Companies, Inc. (CGC) has become a substantial holder in the company as of April 11, 2025. CGC, a prominent U.S.-based investment management firm, through its affiliate Capital Research and Management Company, now holds a 5.27% voting power in Guzman y Gomez Ltd., owning 5,413,874 shares of common stock. This development indicates a significant investment interest in Guzman y Gomez Ltd., potentially impacting its market positioning and signaling confidence from a major investment entity.

Guzman y Gomez Reports Robust Q3 FY25 Growth and Announces Dividend Policy

Guzman y Gomez Ltd. reported strong sales growth in Q3 FY25, driven by global network expansion and successful marketing initiatives. The company opened new restaurants in Australia and the US, introduced new menu items, and launched campaigns emphasizing healthy ingredients. With a 23.6% increase in network sales and improved guest experience metrics, GYG is set to exceed its FY25 NPAT forecast. Additionally, the company announced a new dividend policy, aiming to distribute the majority of earnings to shareholders while supporting future growth.