POTBELLY CORP (PBPB) Stock Fundamental Analysis
NASDAQ:PBPB - US73754Y1001 - Common Stock
12.65 USD
+0.02 (+0.16%)
12.65 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to PBPB. PBPB was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. PBPB has only an average score on both its financial health and profitability. PBPB is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PBPB was profitable.
In the past year PBPB had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PBPB reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: PBPB reported negative operating cash flow in multiple years.
1.2 Ratios
PBPB has a Return On Assets (4.06%) which is in line with its industry peers.
PBPB has a better Return On Equity (17.56%) than 75.37% of its industry peers.
PBPB has a Return On Invested Capital (6.48%) which 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 16.00%.
The 3 year average ROIC (4.13%) for PBPB is below the current ROIC(6.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 17.56% | ||
| ROIC | 6.48% |
ROA(3y)6.36%
ROA(5y)-2.68%
ROE(3y)66.47%
ROE(5y)N/A
ROIC(3y)4.13%
ROIC(5y)N/A
1.3 Margins
PBPB has a Profit Margin (2.30%) which is in line with its industry peers.
PBPB has a worse Operating Margin (3.08%) than 70.90% of its industry peers.
PBPB has a better Gross Margin (74.63%) than 89.55% of its industry peers.
In the last couple of years the Gross Margin of PBPB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.08% | ||
| PM (TTM) | 2.3% | ||
| GM | 74.63% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.78%
GM growth 5Y0.13%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PBPB is destroying value.
Compared to 1 year ago, PBPB has more shares outstanding
PBPB has more shares outstanding than it did 5 years ago.
PBPB has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.38, we must say that PBPB is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.38, PBPB perfoms like the industry average, outperforming 42.54% of the companies in the same industry.
There is no outstanding debt for PBPB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.73
WACC8.9%
2.3 Liquidity
A Current Ratio of 0.50 indicates that PBPB may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.50, PBPB is doing worse than 75.37% of the companies in the same industry.
PBPB has a Quick Ratio of 0.50. This is a bad value and indicates that PBPB is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.45, PBPB is not doing good in the industry: 75.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 100.00% over the past year.
The Revenue has decreased by -1.73% in the past year.
Measured over the past years, PBPB shows a small growth in Revenue. The Revenue has been growing by 2.46% on average per year.
EPS 1Y (TTM)100%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%12.5%
Revenue 1Y (TTM)-1.73%
Revenue growth 3Y6.77%
Revenue growth 5Y2.46%
Sales Q2Q%3.35%
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 14.66% on average per year.
Based on estimates for the next years, PBPB will show a small growth in Revenue. The Revenue will grow by 3.78% on average per year.
EPS Next Y-5.93%
EPS Next 2Y14.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.27%
Revenue Next 2Y3.78%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 42.17, which means the current valuation is very expensive for PBPB.
Compared to the rest of the industry, the Price/Earnings ratio of PBPB is on the same level as its industry peers.
PBPB is valuated expensively when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 32.07, the valuation of PBPB can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PBPB is on the same level as its industry peers.
PBPB is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.17 | ||
| Fwd PE | 32.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PBPB is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, PBPB is valued a bit cheaper than the industry average as 72.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.84 | ||
| EV/EBITDA | 12.73 |
4.3 Compensation for Growth
A more expensive valuation may be justified as PBPB's earnings are expected to grow with 14.66% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PBPB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.65
+0.02 (+0.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners80.66%
Inst Owner Change4.95%
Ins Owners10.08%
Ins Owner Change8.06%
Market Cap382.79M
Analysts80
Price Target18.53 (46.48%)
Short Float %4.76%
Short Ratio4.71
Dividend
| Industry Rank | Sector 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)1
Avg EPS beat(2)49.02%
Min EPS beat(2)-1.96%
Max EPS beat(2)100%
EPS beat(4)3
Avg EPS beat(4)69.67%
Min EPS beat(4)-1.96%
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)-0.66%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)-0.45%
Revenue beat(4)0
Avg Revenue beat(4)-0.84%
Min Revenue beat(4)-1.75%
Max Revenue beat(4)-0.3%
Revenue beat(8)0
Avg Revenue beat(8)-1.32%
Revenue beat(12)0
Avg Revenue beat(12)-1.6%
Revenue beat(16)2
Avg Revenue beat(16)-1.06%
PT rev (1m)3.92%
PT rev (3m)3.92%
EPS NQ rev (1m)-11.6%
EPS NQ rev (3m)-4.81%
EPS NY rev (1m)3.75%
EPS NY rev (3m)3.75%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.17 | ||
| Fwd PE | 32.07 | ||
| P/S | 0.82 | ||
| P/FCF | 22.84 | ||
| P/OCF | 10.03 | ||
| P/B | 6.24 | ||
| P/tB | 6.85 | ||
| EV/EBITDA | 12.73 |
EPS(TTM)0.3
EY2.37%
EPS(NY)0.39
Fwd EY3.12%
FCF(TTM)0.55
FCFY4.38%
OCF(TTM)1.26
OCFY9.97%
SpS15.5
BVpS2.03
TBVpS1.85
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 17.56% | ||
| ROCE | 7.54% | ||
| ROIC | 6.48% | ||
| ROICexc | 7.08% | ||
| ROICexgc | 7.31% | ||
| OM | 3.08% | ||
| PM (TTM) | 2.3% | ||
| GM | 74.63% | ||
| FCFM | 3.57% |
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 Turnover1.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 149.89% | ||
| Cap/Sales | 4.57% | ||
| Interest Coverage | 33.55 | ||
| Cash Conversion | 132.79% | ||
| Profit Quality | 155.54% | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 1.38 |
F-Score7
WACC8.9%
ROIC/WACC0.73
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)100%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%12.5%
EPS Next Y-5.93%
EPS Next 2Y14.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.73%
Revenue growth 3Y6.77%
Revenue growth 5Y2.46%
Sales Q2Q%3.35%
Revenue Next Year3.27%
Revenue Next 2Y3.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y35.52%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year172.86%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y68.77%
FCF growth 3YN/A
FCF growth 5Y-36.94%
OCF growth 1Y69.53%
OCF growth 3YN/A
OCF growth 5Y1.59%