POTBELLY CORP (PBPB)
US73754Y1001 - Common Stock
Taking everything into account, PBPB scores 3 out of 10 in our fundamental rating. PBPB was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. While PBPB is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, PBPB is valued expensive at the moment.
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.
In multiple years PBPB reported negative net income over the last 5 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 of 1.61%. This is comparable to the rest of the industry: PBPB outperforms 42.54% of its industry peers.
PBPB has a Return On Equity of 25.58%. This is in the better half of the industry: PBPB outperforms 79.10% of its industry peers.
With a Return On Invested Capital value of 5.84%, PBPB perfoms like the industry average, outperforming 52.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.61% | ||
| ROE | 25.58% | ||
| ROIC | 5.84% |
ROA(3y)-1.87%
ROA(5y)-7.18%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PBPB has a Profit Margin of 0.76%. This is in the lower half of the industry: PBPB underperforms 65.67% of its industry peers.
PBPB has a Operating Margin of 2.14%. This is in the lower half of the industry: PBPB underperforms 70.90% of its industry peers.
PBPB's Operating Margin has improved in the last couple of years.
PBPB has a better Gross Margin (73.08%) than 85.07% of its industry peers.
PBPB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.14% | ||
| PM (TTM) | 0.76% | ||
| GM | 73.08% |
OM growth 3YN/A
OM growth 5Y26.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.46%
GM growth 5Y-0.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PBPB is destroying value.
Compared to 1 year ago, PBPB has more shares outstanding
Compared to 5 years ago, PBPB has more shares outstanding
The debt/assets ratio for PBPB is higher compared to a year ago.
2.2 Solvency
PBPB has an Altman-Z score of 0.76. 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 0.76, PBPB is doing worse than 70.90% of the companies in the same industry.
PBPB has a debt to FCF ratio of 1.60. This is a very positive value and a sign of high solvency as it would only need 1.60 years to pay back of all of its debts.
The Debt to FCF ratio of PBPB (1.60) is better than 84.33% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that PBPB is not too dependend on debt financing.
PBPB has a better Debt to Equity ratio (0.35) than 71.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.6 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.6
WACC9.75%
2.3 Liquidity
PBPB has a Current Ratio of 0.48. 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 0.48. This is in the lower half of the industry: PBPB underperforms 77.61% of its industry peers.
PBPB has a Quick Ratio of 0.48. 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 Quick ratio of 0.43. This is in the lower half of the industry: PBPB underperforms 78.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
PBPB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.00%, which is quite impressive.
Measured over the past years, PBPB shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.94% on average per year.
The Revenue has been growing slightly by 2.58% in the past year.
PBPB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.06% yearly.
EPS 1Y (TTM)100%
EPS 3YN/A
EPS 5Y-12.94%
EPS growth Q2Q-50%
Revenue 1Y (TTM)2.58%
Revenue growth 3Y19.04%
Revenue growth 5Y3.06%
Revenue growth Q2Q-6.02%
3.2 Future
The Earnings Per Share is expected to grow by 41.23% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -0.81% on average over the next years.
EPS Next Y59.8%
EPS Next 2Y41.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.62%
Revenue Next 2Y-0.81%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 62.00, PBPB can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of PBPB indicates a slightly more expensive valuation: PBPB is more expensive than 61.94% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.52, PBPB is valued quite expensively.
PBPB is valuated quite expensively with a Price/Forward Earnings ratio of 29.01.
Based on the Price/Forward Earnings ratio, PBPB is valued a bit more expensive than 61.19% of the companies in the same industry.
PBPB's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62 | ||
| Fwd PE | 29.01 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PBPB.
PBPB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 82.2 | ||
| EV/EBITDA | 11.12 |
4.3 Compensation for Growth
PBPB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as PBPB's earnings are expected to grow with 41.23% in the coming years.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y41.23%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PBPB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
POTBELLY CORP
NASDAQ:PBPB (5/21/2024, 7:00:02 PM)
After market: 8.68 0 (0%)8.68
-0.03 (-0.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap257.62M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62 | ||
| Fwd PE | 29.01 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.61% | ||
| ROE | 25.58% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.14% | ||
| PM (TTM) | 0.76% | ||
| GM | 73.08% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)100%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y59.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.58%
Revenue growth 3Y19.04%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y