FIRST WATCH RESTAURANT GROUP (FWRG) Stock Fundamental Analysis
USA - NASDAQ:FWRG - US33748L1017 - Common Stock
18 USD
-0.66 (-3.54%)
18 USD
0 (0%)
Taking everything into account, FWRG scores 2 out of 10 in our fundamental rating. FWRG was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. FWRG may be in some trouble as it scores bad on both profitability and health. FWRG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FWRG was profitable.
FWRG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: FWRG reported negative net income in multiple years.
Of the past 5 years FWRG 4 years had a positive operating cash flow.
1.2 Ratios
FWRG's Return On Assets of 0.24% is on the low side compared to the rest of the industry. FWRG is outperformed by 63.43% of its industry peers.
With a Return On Equity value of 0.68%, FWRG perfoms like the industry average, outperforming 50.75% of the companies in the same industry.
The Return On Invested Capital of FWRG (1.19%) is worse than 75.37% of its industry peers.
FWRG had an Average Return On Invested Capital over the past 3 years of 2.26%. This is significantly below the industry average of 10.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.24% | ||
| ROE | 0.68% | ||
| ROIC | 1.19% |
ROA(3y)1.29%
ROA(5y)-0.25%
ROE(3y)3.01%
ROE(5y)-1.38%
ROIC(3y)2.26%
ROIC(5y)N/A
1.3 Margins
FWRG has a worse Profit Margin (0.37%) than 64.18% of its industry peers.
With a Operating Margin value of 2.37%, FWRG is not doing good in the industry: 71.64% of the companies in the same industry are doing better.
FWRG's Operating Margin has improved in the last couple of years.
FWRG's Gross Margin of 61.79% is fine compared to the rest of the industry. FWRG outperforms 74.63% of its industry peers.
FWRG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.37% | ||
| PM (TTM) | 0.37% | ||
| GM | 61.79% |
OM growth 3Y3.02%
OM growth 5Y16.3%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.64%
GM growth 5Y-0.07%
2. Health
2.1 Basic Checks
FWRG 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 FWRG has been increased compared to 1 year ago.
The number of shares outstanding for FWRG has been increased compared to 5 years ago.
The debt/assets ratio for FWRG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.20, we must say that FWRG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.20, FWRG is doing worse than 61.94% of the companies in the same industry.
FWRG has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
FWRG has a Debt to Equity ratio of 0.42. This is in the better half of the industry: FWRG outperforms 69.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.2 |
ROIC/WACC0.15
WACC8.18%
2.3 Liquidity
FWRG has a Current Ratio of 0.27. This is a bad value and indicates that FWRG is not financially healthy enough and could expect problems in meeting its short term obligations.
FWRG's Current ratio of 0.27 is on the low side compared to the rest of the industry. FWRG is outperformed by 91.79% of its industry peers.
FWRG has a Quick Ratio of 0.27. This is a bad value and indicates that FWRG is not financially healthy enough and could expect problems in meeting its short term obligations.
FWRG has a Quick ratio of 0.23. This is amonst the worse of the industry: FWRG underperforms 90.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
The earnings per share for FWRG have decreased strongly by -83.59% in the last year.
FWRG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.53%.
Measured over the past years, FWRG shows a quite strong growth in Revenue. The Revenue has been growing by 18.41% on average per year.
EPS 1Y (TTM)-83.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-78.57%
Revenue 1Y (TTM)14.53%
Revenue growth 3Y19.11%
Revenue growth 5Y18.41%
Sales Q2Q%19.08%
3.2 Future
FWRG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.59% yearly.
FWRG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.50% yearly.
EPS Next Y-45.57%
EPS Next 2Y9.49%
EPS Next 3Y21%
EPS Next 5Y20.59%
Revenue Next Year19.67%
Revenue Next 2Y17.92%
Revenue Next 3Y15.98%
Revenue Next 5Y14.5%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 300.00 indicates a quite expensive valuation of FWRG.
Compared to the rest of the industry, the Price/Earnings ratio of FWRG indicates a slightly more expensive valuation: FWRG is more expensive than 65.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.67. FWRG is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 49.39 indicates a quite expensive valuation of FWRG.
Based on the Price/Forward Earnings ratio, FWRG is valued a bit more expensive than 60.45% of the companies in the same industry.
FWRG's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 300 | ||
| Fwd PE | 49.39 |
4.2 Price Multiples
FWRG's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.61 |
4.3 Compensation for Growth
A more expensive valuation may be justified as FWRG's earnings are expected to grow with 21.00% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.49%
EPS Next 3Y21%
5. Dividend
5.1 Amount
FWRG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18
-0.66 (-3.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners94.28%
Inst Owner Change-0.02%
Ins Owners2.2%
Ins Owner Change-5.58%
Market Cap1.10B
Revenue(TTM)1.11B
Net Income(TTM)4.09M
Analysts87.06
Price Target22.44 (24.67%)
Short Float %10.87%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-87.51%
Min EPS beat(2)-130.75%
Max EPS beat(2)-44.27%
EPS beat(4)0
Avg EPS beat(4)-63.63%
Min EPS beat(4)-130.75%
Max EPS beat(4)-26.42%
EPS beat(8)4
Avg EPS beat(8)-10.91%
EPS beat(12)6
Avg EPS beat(12)-15.89%
EPS beat(16)10
Avg EPS beat(16)21.62%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-2.32%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-2.55%
Min Revenue beat(4)-3.75%
Max Revenue beat(4)-1.53%
Revenue beat(8)1
Avg Revenue beat(8)-1.83%
Revenue beat(12)3
Avg Revenue beat(12)-1.31%
Revenue beat(16)7
Avg Revenue beat(16)-0.63%
PT rev (1m)0%
PT rev (3m)5.22%
EPS NQ rev (1m)1.56%
EPS NQ rev (3m)44.22%
EPS NY rev (1m)-1.68%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)1.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 300 | ||
| Fwd PE | 49.39 | ||
| P/S | 0.99 | ||
| P/FCF | N/A | ||
| P/OCF | 9.28 | ||
| P/B | 1.83 | ||
| P/tB | 556.69 | ||
| EV/EBITDA | 14.61 |
EPS(TTM)0.06
EY0.33%
EPS(NY)0.36
Fwd EY2.02%
FCF(TTM)-0.48
FCFYN/A
OCF(TTM)1.94
OCFY10.78%
SpS18.11
BVpS9.85
TBVpS0.03
PEG (NY)N/A
PEG (5Y)N/A
Graham Number3.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.24% | ||
| ROE | 0.68% | ||
| ROCE | 1.73% | ||
| ROIC | 1.19% | ||
| ROICexc | 1.21% | ||
| ROICexgc | 2.01% | ||
| OM | 2.37% | ||
| PM (TTM) | 0.37% | ||
| GM | 61.79% | ||
| FCFM | N/A |
ROA(3y)1.29%
ROA(5y)-0.25%
ROE(3y)3.01%
ROE(5y)-1.38%
ROIC(3y)2.26%
ROIC(5y)N/A
ROICexc(3y)2.35%
ROICexc(5y)N/A
ROICexgc(3y)4.37%
ROICexgc(5y)N/A
ROCE(3y)3.27%
ROCE(5y)N/A
ROICexgc growth 3Y-0.6%
ROICexgc growth 5Y21.1%
ROICexc growth 3Y7.43%
ROICexc growth 5Y27.07%
OM growth 3Y3.02%
OM growth 5Y16.3%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.64%
GM growth 5Y-0.07%
F-Score3
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.72 | ||
| Cap/Depr | 225.38% | ||
| Cap/Sales | 13.38% | ||
| Interest Coverage | 2.44 | ||
| Cash Conversion | 128.92% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 1.2 |
F-Score3
WACC8.18%
ROIC/WACC0.15
Cap/Depr(3y)204.11%
Cap/Depr(5y)162.05%
Cap/Sales(3y)10.26%
Cap/Sales(5y)8.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-83.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-78.57%
EPS Next Y-45.57%
EPS Next 2Y9.49%
EPS Next 3Y21%
EPS Next 5Y20.59%
Revenue 1Y (TTM)14.53%
Revenue growth 3Y19.11%
Revenue growth 5Y18.41%
Sales Q2Q%19.08%
Revenue Next Year19.67%
Revenue Next 2Y17.92%
Revenue Next 3Y15.98%
Revenue Next 5Y14.5%
EBIT growth 1Y-47.16%
EBIT growth 3Y22.71%
EBIT growth 5Y37.72%
EBIT Next Year195.13%
EBIT Next 3Y61.4%
EBIT Next 5Y40.23%
FCF growth 1Y-243.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y36.49%
OCF growth 3Y22.47%
OCF growth 5Y40.05%