POTBELLY CORP (PBPB) Stock Fundamental Analysis
NASDAQ:PBPB - Nasdaq - US73754Y1001 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to PBPB. PBPB was compared to 131 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of PBPB get a neutral evaluation. Nothing too spectacular is happening here. PBPB is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PBPB had positive earnings in the past year.
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.
1.2 Ratios
PBPB's Return On Assets of 16.18% is amongst the best of the industry. PBPB outperforms 93.89% of its industry peers.
PBPB has a Return On Equity of 73.04%. This is amongst the best in the industry. PBPB outperforms 97.71% of its industry peers.
PBPB has a Return On Invested Capital of 6.32%. This is comparable to the rest of the industry: PBPB outperforms 57.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PBPB is significantly below the industry average of 15.87%.
The 3 year average ROIC (4.13%) for PBPB is below the current ROIC(6.32%), indicating increased profibility in the last year.
| Industry Rank | Sector 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
1.3 Margins
With a decent Profit Margin value of 9.24%, PBPB is doing good in the industry, outperforming 70.99% of the companies in the same industry.
With a Operating Margin value of 3.12%, PBPB is not doing good in the industry: 69.47% of the companies in the same industry are doing better.
PBPB has a better Gross Margin (74.37%) than 90.84% 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 | 3.12% | ||
| 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%
2. Health
2.1 Basic Checks
PBPB 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 PBPB has been increased compared to 1 year ago.
The number of shares outstanding for PBPB has been increased compared to 5 years ago.
PBPB has a better debt/assets ratio than last year.
2.2 Solvency
PBPB has an Altman-Z score of 1.29. This is a bad value and indicates that PBPB is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.29, PBPB is doing worse than 60.31% of the companies in the same industry.
The Debt to FCF ratio of PBPB is 0.62, which is an excellent value as it means it would take PBPB, only 0.62 years of fcf income to pay off all of its debts.
PBPB has a Debt to FCF ratio of 0.62. This is amongst the best in the industry. PBPB outperforms 90.84% 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 83.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.62 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.66
WACC9.53%
2.3 Liquidity
PBPB has a Current Ratio of 0.53. This is a bad value and indicates that PBPB is not financially healthy enough and could expect problems in meeting its short term obligations.
PBPB has a Current ratio of 0.53. This is in the lower half of the industry: PBPB underperforms 74.05% of its industry peers.
PBPB has a Quick Ratio of 0.53. This is a bad value and indicates that PBPB is not financially healthy enough and could expect problems in meeting its short term obligations.
PBPB has a worse Quick ratio (0.48) than 71.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 107.14% over the past year.
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
The Earnings Per Share is expected to grow by 10.63% on average over the next years. This is quite good.
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 2Y10.63%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 42.38, PBPB can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as PBPB.
Compared to an average S&P500 Price/Earnings ratio of 27.91, PBPB is valued quite expensively.
A Price/Forward Earnings ratio of 33.47 indicates a quite expensive valuation of PBPB.
The rest of the industry has a similar Price/Forward Earnings ratio as PBPB.
PBPB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 37.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.38 | ||
| Fwd PE | 33.47 |
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.
PBPB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.9 | ||
| EV/EBITDA | 12.53 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.63%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PBPB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:PBPB (7/30/2025, 11:53:29 AM)
12.29
+0.37 (+3.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners79.05%
Inst Owner Change0.37%
Ins Owners10.09%
Ins Owner Change8.09%
Market Cap370.79M
Analysts80
Price Target17.34 (41.09%)
Short Float %4.74%
Short Ratio5.52
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)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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.9%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.38 | ||
| Fwd PE | 33.47 | ||
| P/S | 0.8 | ||
| P/FCF | 50.9 | ||
| P/OCF | 13.43 | ||
| P/B | 6.3 | ||
| P/tB | 6.94 | ||
| EV/EBITDA | 12.53 |
EPS(TTM)0.29
EY2.36%
EPS(NY)0.37
Fwd EY2.99%
FCF(TTM)0.24
FCFY1.96%
OCF(TTM)0.91
OCFY7.44%
SpS15.42
BVpS1.95
TBVpS1.77
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.29 |
F-Score7
WACC9.53%
ROIC/WACC0.66
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 2Y10.63%
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%