0.26 USD
-0.13 (-33.67%)
0.25 USD
-0.01 (-3.85%)
We assign a fundamental rating of 1 out of 10 to FAT. FAT was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. FAT has a bad profitability rating. Also its financial health evaluation is rather negative. FAT does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- FAT had negative earnings in the past year.
- FAT had a negative operating cash flow in the past year.
- FAT had negative earnings in each of the past 5 years.
- FAT had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a Return On Assets value of -19.39%, FAT is not doing good in the industry: 90.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -19.39% | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)-10.91%
ROA(5y)-9.5%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- FAT does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- FAT does not have a ROIC to compare to the WACC, probably because it is not profitable.
- FAT has more shares outstanding than it did 1 year ago.
- FAT has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, FAT has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of -1.87, we must say that FAT is in the distress zone and has some risk of bankruptcy.
- FAT has a Altman-Z score of -1.87. This is amonst the worse of the industry: FAT underperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -1.87 |
ROIC/WACCN/A
WACC7.86%
2.3 Liquidity
- A Current Ratio of 0.03 indicates that FAT may have some problems paying its short term obligations.
- FAT's Current ratio of 0.03 is on the low side compared to the rest of the industry. FAT is outperformed by 94.70% of its industry peers.
- FAT has a Quick Ratio of 0.03. This is a bad value and indicates that FAT is not financially healthy enough and could expect problems in meeting its short term obligations.
- FAT has a worse Quick ratio (0.03) than 94.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 |
3. Growth
3.1 Past
- FAT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.89%.
- The Revenue has decreased by -5.26% in the past year.
- Measured over the past years, FAT shows a very strong growth in Revenue. The Revenue has been growing by 92.36% on average per year.
EPS 1Y (TTM)-38.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1.82%
Revenue 1Y (TTM)-5.26%
Revenue growth 3Y70.82%
Revenue growth 5Y92.36%
Sales Q2Q%-2.34%
3.2 Future
- Based on estimates for the next years, FAT will show a small growth in Earnings Per Share. The EPS will grow by 3.74% on average per year.
- Based on estimates for the next years, FAT will show a decrease in Revenue. The Revenue will decrease by -0.32% on average per year.
EPS Next Y-10.32%
EPS Next 2Y3.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.19%
Revenue Next 2Y-0.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- FAT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for FAT. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.74%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- FAT has a Yearly Dividend Yield of 9.49%, which is a nice return.
- In the last 3 months the price of FAT has falen by -85.31%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 1.21, FAT pays a better dividend. On top of this FAT pays more dividend than 98.48% of the companies listed in the same industry.
- FAT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.49% |
5.2 History
- FAT has been paying a dividend for over 5 years, so it has already some track record.
- The dividend of FAT decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- FAT has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-3.14%
EPS Next 2Y3.74%
EPS Next 3YN/A
FAT BRANDS INC-CL A / FAT FAQ
What is the fundamental rating for FAT stock?
ChartMill assigns a fundamental rating of 1 / 10 to FAT.
What is the valuation status for FAT stock?
ChartMill assigns a valuation rating of 0 / 10 to FAT BRANDS INC-CL A (FAT). This can be considered as Overvalued.
What is the profitability of FAT stock?
FAT BRANDS INC-CL A (FAT) has a profitability rating of 0 / 10.
How sustainable is the dividend of FAT BRANDS INC-CL A (FAT) stock?
The dividend rating of FAT BRANDS INC-CL A (FAT) is 5 / 10 and the dividend payout ratio is -3.14%.