BJ'S RESTAURANTS INC (BJRI) Stock Fundamental Analysis
NASDAQ:BJRI - Nasdaq - US09180C1062 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to BJRI. BJRI was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. The financial health of BJRI is average, but there are quite some concerns on its profitability. BJRI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BJRI was profitable.
In the past year BJRI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BJRI reported negative net income in multiple years.
BJRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BJRI has a Return On Assets (2.20%) which is in line with its industry peers.
The Return On Equity of BJRI (6.04%) is better than 63.70% of its industry peers.
BJRI's Return On Invested Capital of 3.56% is on the low side compared to the rest of the industry. BJRI is outperformed by 63.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.04% | ||
| ROIC | 3.56% |
ROA(3y)1.28%
ROA(5y)-0.39%
ROE(3y)3.69%
ROE(5y)-1.94%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 1.64%, BJRI perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
BJRI's Profit Margin has declined in the last couple of years.
BJRI has a Operating Margin of 2.82%. This is in the lower half of the industry: BJRI underperforms 71.85% of its industry peers.
In the last couple of years the Operating Margin of BJRI has declined.
BJRI's Gross Margin of 37.97% is on the low side compared to the rest of the industry. BJRI is outperformed by 68.89% of its industry peers.
In the last couple of years the Gross Margin of BJRI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.82% | ||
| PM (TTM) | 1.64% | ||
| GM | 37.97% |
OM growth 3YN/A
OM growth 5Y-10.42%
PM growth 3YN/A
PM growth 5Y-20.58%
GM growth 3Y0.99%
GM growth 5Y-0.21%
2. Health
2.1 Basic Checks
BJRI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BJRI has been reduced compared to 1 year ago.
The number of shares outstanding for BJRI has been increased compared to 5 years ago.
Compared to 1 year ago, BJRI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.61 indicates that BJRI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.61, BJRI is doing good in the industry, outperforming 74.81% of the companies in the same industry.
The Debt to FCF ratio of BJRI is 7.09, which is on the high side as it means it would take BJRI, 7.09 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.09, BJRI is in the better half of the industry, outperforming 68.89% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that BJRI is not too dependend on debt financing.
BJRI has a better Debt to Equity ratio (0.23) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 7.09 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.39
WACC9.02%
2.3 Liquidity
A Current Ratio of 0.39 indicates that BJRI may have some problems paying its short term obligations.
The Current ratio of BJRI (0.39) is worse than 79.26% of its industry peers.
BJRI has a Quick Ratio of 0.39. This is a bad value and indicates that BJRI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.31, BJRI is not doing good in the industry: 79.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 65.00% over the past year.
The Earnings Per Share has been decreasing by -6.78% on average over the past years.
The Revenue has been growing slightly by 2.91% in the past year.
Measured over the past years, BJRI shows a small growth in Revenue. The Revenue has been growing by 3.16% on average per year.
EPS 1Y (TTM)65%
EPS 3YN/A
EPS 5Y-6.78%
EPS Q2Q%84.37%
Revenue 1Y (TTM)2.91%
Revenue growth 3Y7.68%
Revenue growth 5Y3.16%
Sales Q2Q%3.15%
3.2 Future
Based on estimates for the next years, BJRI will show a very strong growth in Earnings Per Share. The EPS will grow by 26.28% on average per year.
The Revenue is expected to grow by 4.51% on average over the next years.
EPS Next Y48.12%
EPS Next 2Y31.88%
EPS Next 3Y26.28%
EPS Next 5YN/A
Revenue Next Year4.07%
Revenue Next 2Y3.53%
Revenue Next 3Y3.66%
Revenue Next 5Y4.51%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
BJRI is valuated quite expensively with a Price/Earnings ratio of 25.72.
BJRI's Price/Earnings is on the same level as the industry average.
BJRI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.82.
A Price/Forward Earnings ratio of 17.68 indicates a rather expensive valuation of BJRI.
63.70% of the companies in the same industry are more expensive than BJRI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, BJRI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.72 | ||
| Fwd PE | 17.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BJRI is valued a bit cheaper than 70.37% of the companies in the same industry.
BJRI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.54 | ||
| EV/EBITDA | 8.89 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BJRI's earnings are expected to grow with 26.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y31.88%
EPS Next 3Y26.28%
5. Dividend
5.1 Amount
BJRI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
42.445
+0.95 (+2.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners97.81%
Inst Owner Change3.31%
Ins Owners1.84%
Ins Owner Change-15.88%
Market Cap947.37M
Analysts73.75
Price Target42.69 (0.58%)
Short Float %7.2%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0.04%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)43.01%
Min EPS beat(2)34.73%
Max EPS beat(2)51.29%
EPS beat(4)3
Avg EPS beat(4)-145.05%
Min EPS beat(4)-704.03%
Max EPS beat(4)51.29%
EPS beat(8)6
Avg EPS beat(8)-311.48%
EPS beat(12)9
Avg EPS beat(12)-191.75%
EPS beat(16)11
Avg EPS beat(16)-191.74%
Revenue beat(2)1
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)0.12%
Revenue beat(4)1
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.12%
Revenue beat(12)3
Avg Revenue beat(12)-1.59%
Revenue beat(16)3
Avg Revenue beat(16)-1.91%
PT rev (1m)-1.68%
PT rev (3m)5.78%
EPS NQ rev (1m)4.8%
EPS NQ rev (3m)19.55%
EPS NY rev (1m)18.79%
EPS NY rev (3m)35.88%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.72 | ||
| Fwd PE | 17.68 | ||
| P/S | 0.69 | ||
| P/FCF | 78.54 | ||
| P/OCF | 11.31 | ||
| P/B | 2.55 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 8.89 |
EPS(TTM)1.65
EY3.89%
EPS(NY)2.4
Fwd EY5.65%
FCF(TTM)0.54
FCFY1.27%
OCF(TTM)3.75
OCFY8.84%
SpS61.29
BVpS16.64
TBVpS16.43
PEG (NY)0.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.04% | ||
| ROCE | 4.51% | ||
| ROIC | 3.56% | ||
| ROICexc | 3.64% | ||
| ROICexgc | 3.66% | ||
| OM | 2.82% | ||
| PM (TTM) | 1.64% | ||
| GM | 37.97% | ||
| FCFM | 0.88% |
ROA(3y)1.28%
ROA(5y)-0.39%
ROE(3y)3.69%
ROE(5y)-1.94%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-5.99%
ROICexc growth 3YN/A
ROICexc growth 5Y-6%
OM growth 3YN/A
OM growth 5Y-10.42%
PM growth 3YN/A
PM growth 5Y-20.58%
GM growth 3Y0.99%
GM growth 5Y-0.21%
F-Score7
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 7.09 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 98.02% | ||
| Cap/Sales | 5.24% | ||
| Interest Coverage | 8.83 | ||
| Cash Conversion | 74.97% | ||
| Profit Quality | 53.71% | ||
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 2.61 |
F-Score7
WACC9.02%
ROIC/WACC0.39
Cap/Depr(3y)118.9%
Cap/Depr(5y)94.78%
Cap/Sales(3y)6.4%
Cap/Sales(5y)5.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)65%
EPS 3YN/A
EPS 5Y-6.78%
EPS Q2Q%84.37%
EPS Next Y48.12%
EPS Next 2Y31.88%
EPS Next 3Y26.28%
EPS Next 5YN/A
Revenue 1Y (TTM)2.91%
Revenue growth 3Y7.68%
Revenue growth 5Y3.16%
Sales Q2Q%3.15%
Revenue Next Year4.07%
Revenue Next 2Y3.53%
Revenue Next 3Y3.66%
Revenue Next 5Y4.51%
EBIT growth 1Y47.92%
EBIT growth 3YN/A
EBIT growth 5Y-7.58%
EBIT Next Year359.22%
EBIT Next 3Y74.94%
EBIT Next 5YN/A
FCF growth 1Y208.67%
FCF growth 3Y3.6%
FCF growth 5Y-6.18%
OCF growth 1Y1.65%
OCF growth 3Y16.42%
OCF growth 5Y-2.64%