Logo image of PBPB

POTBELLY CORP (PBPB) Stock Fundamental Analysis

NASDAQ:PBPB - Nasdaq - US73754Y1001 - Common Stock - Currency: USD

10.86  +0.16 (+1.5%)

Fundamental Rating

4

Overall PBPB gets a fundamental rating of 4 out of 10. We evaluated PBPB against 133 industry peers in the Hotels, Restaurants & Leisure industry. PBPB has an average financial health and profitability rating. While showing a medium growth rate, PBPB is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

In the past year PBPB was profitable.
PBPB had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PBPB reported negative net income in multiple years.
In multiple years PBPB reported negative operating cash flow during the last 5 years.
PBPB Yearly Net Income VS EBIT VS OCF VS FCFPBPB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M -40M -60M

1.2 Ratios

PBPB's Return On Assets of 16.18% is amongst the best of the industry. PBPB outperforms 93.98% of its industry peers.
PBPB has a better Return On Equity (73.04%) than 97.74% of its industry peers.
The Return On Invested Capital of PBPB (6.32%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PBPB is significantly below the industry average of 13.97%.
The 3 year average ROIC (4.13%) for PBPB is below the current ROIC(6.32%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 16.18%
ROE 73.04%
ROIC 6.32%
ROA(3y)6.36%
ROA(5y)-2.68%
ROE(3y)66.47%
ROE(5y)N/A
ROIC(3y)4.13%
ROIC(5y)N/A
PBPB Yearly ROA, ROE, ROICPBPB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500 -500 1K -1K

1.3 Margins

PBPB's Profit Margin of 9.24% is fine compared to the rest of the industry. PBPB outperforms 72.93% of its industry peers.
PBPB has a worse Operating Margin (3.12%) than 70.68% of its industry peers.
Looking at the Gross Margin, with a value of 74.37%, PBPB belongs to the top of the industry, outperforming 90.98% of the companies in the same industry.
PBPB's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 3.12%
PM (TTM) 9.24%
GM 74.37%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.78%
GM growth 5Y0.13%
PBPB Yearly Profit, Operating, Gross MarginsPBPB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PBPB is destroying value.
The number of shares outstanding for PBPB has been increased compared to 1 year ago.
PBPB has more shares outstanding than it did 5 years ago.
PBPB has a better debt/assets ratio than last year.
PBPB Yearly Shares OutstandingPBPB Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M 25M
PBPB Yearly Total Debt VS Total AssetsPBPB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

2.2 Solvency

Based on the Altman-Z score of 1.18, we must say that PBPB is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PBPB (1.18) is worse than 60.15% of its industry peers.
PBPB has a debt to FCF ratio of 0.62. This is a very positive value and a sign of high solvency as it would only need 0.62 years to pay back of all of its debts.
PBPB has a better Debt to FCF ratio (0.62) than 90.98% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that PBPB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.08, PBPB belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF 0.62
Altman-Z 1.18
ROIC/WACC0.64
WACC9.84%
PBPB Yearly LT Debt VS Equity VS FCFPBPB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M

2.3 Liquidity

A Current Ratio of 0.53 indicates that PBPB may have some problems paying its short term obligations.
The Current ratio of PBPB (0.53) is worse than 72.18% of its industry peers.
A Quick Ratio of 0.48 indicates that PBPB may have some problems paying its short term obligations.
With a Quick ratio value of 0.48, PBPB is not doing good in the industry: 69.92% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.53
Quick Ratio 0.48
PBPB Yearly Current Assets VS Current LiabilitesPBPB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M

4

3. Growth

3.1 Past

PBPB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 107.14%, which is quite impressive.
Looking at the last year, PBPB shows a decrease in Revenue. The Revenue has decreased by -3.96% in the last year.
The Revenue has been growing slightly by 2.46% on average over the past years.
EPS 1Y (TTM)107.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-100%
Revenue 1Y (TTM)-3.96%
Revenue growth 3Y6.77%
Revenue growth 5Y2.46%
Sales Q2Q%2.27%

3.2 Future

Based on estimates for the next years, PBPB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.31% on average per year.
Based on estimates for the next years, PBPB will show a small growth in Revenue. The Revenue will grow by 3.61% on average per year.
EPS Next Y-9.33%
EPS Next 2Y8.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.74%
Revenue Next 2Y3.61%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

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.
PBPB Yearly Revenue VS EstimatesPBPB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M 400M 500M
PBPB Yearly EPS VS EstimatesPBPB Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 -0.5 -1 -1.5

1

4. Valuation

4.1 Price/Earnings Ratio

PBPB is valuated quite expensively with a Price/Earnings ratio of 37.45.
Compared to the rest of the industry, the Price/Earnings ratio of PBPB is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PBPB to the average of the S&P500 Index (26.30), we can say PBPB is valued slightly more expensively.
PBPB is valuated quite expensively with a Price/Forward Earnings ratio of 30.86.
PBPB's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of PBPB to the average of the S&P500 Index (22.06), we can say PBPB is valued slightly more expensively.
Industry RankSector Rank
PE 37.45
Fwd PE 30.86
PBPB Price Earnings VS Forward Price EarningsPBPB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as PBPB.
The rest of the industry has a similar Price/Free Cash Flow ratio as PBPB.
Industry RankSector Rank
P/FCF 44.98
EV/EBITDA 11.21
PBPB Per share dataPBPB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.31%
EPS Next 3YN/A

0

5. Dividend

5.1 Amount

No dividends for PBPB!.
Industry RankSector Rank
Dividend Yield N/A

POTBELLY CORP

NASDAQ:PBPB (6/6/2025, 10:52:48 AM)

10.86

+0.16 (+1.5%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-06 2025-08-06
Inst Owners80.19%
Inst Owner Change4.35%
Ins Owners8.75%
Ins Owner Change3.18%
Market Cap327.65M
Analysts80
Price Target17.34 (59.67%)
Short Float %3.85%
Short Ratio3.98
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)98.04%
Min EPS beat(2)96.08%
Max EPS beat(2)100%
EPS beat(4)4
Avg EPS beat(4)77.84%
Min EPS beat(4)30.72%
Max EPS beat(4)100%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-1.75%
Max Revenue beat(2)-0.45%
Revenue beat(4)0
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-1.9%
Max Revenue beat(4)-0.3%
Revenue beat(8)0
Avg Revenue beat(8)-1.5%
Revenue beat(12)0
Avg Revenue beat(12)-1.55%
Revenue beat(16)2
Avg Revenue beat(16)-1.27%
PT rev (1m)0%
PT rev (3m)10.87%
EPS NQ rev (1m)-12.9%
EPS NQ rev (3m)-6.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.6%
Revenue NQ rev (1m)-0.86%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.88%
Valuation
Industry RankSector Rank
PE 37.45
Fwd PE 30.86
P/S 0.7
P/FCF 44.98
P/OCF 11.87
P/B 5.57
P/tB 6.13
EV/EBITDA 11.21
EPS(TTM)0.29
EY2.67%
EPS(NY)0.35
Fwd EY3.24%
FCF(TTM)0.24
FCFY2.22%
OCF(TTM)0.91
OCFY8.42%
SpS15.42
BVpS1.95
TBVpS1.77
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 16.18%
ROE 73.04%
ROCE 7.35%
ROIC 6.32%
ROICexc 6.83%
ROICexgc 7.04%
OM 3.12%
PM (TTM) 9.24%
GM 74.37%
FCFM 1.57%
ROA(3y)6.36%
ROA(5y)-2.68%
ROE(3y)66.47%
ROE(5y)N/A
ROIC(3y)4.13%
ROIC(5y)N/A
ROICexc(3y)4.69%
ROICexc(5y)N/A
ROICexgc(3y)4.85%
ROICexgc(5y)N/A
ROCE(3y)4.81%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.78%
GM growth 5Y0.13%
F-Score7
Asset Turnover1.75
Health
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF 0.62
Debt/EBITDA 0.16
Cap/Depr 151.84%
Cap/Sales 4.37%
Interest Coverage 30.11
Cash Conversion 98.96%
Profit Quality 16.94%
Current Ratio 0.53
Quick Ratio 0.48
Altman-Z 1.18
F-Score7
WACC9.84%
ROIC/WACC0.64
Cap/Depr(3y)121.2%
Cap/Depr(5y)95.11%
Cap/Sales(3y)3.17%
Cap/Sales(5y)3.13%
Profit Quality(3y)47.56%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)107.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-100%
EPS Next Y-9.33%
EPS Next 2Y8.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.96%
Revenue growth 3Y6.77%
Revenue growth 5Y2.46%
Sales Q2Q%2.27%
Revenue Next Year2.74%
Revenue Next 2Y3.61%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y39.81%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year171.84%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-20.82%
FCF growth 3YN/A
FCF growth 5Y-36.94%
OCF growth 1Y41.1%
OCF growth 3YN/A
OCF growth 5Y1.59%