POTBELLY CORP (PBPB) Stock Fundamental Analysis
NASDAQ:PBPB - Nasdaq - US73754Y1001 - Common Stock - Currency: USD
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.
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.
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 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
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 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
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.62 | ||
| Altman-Z | 1.18 |
ROIC/WACC0.64
WACC9.84%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.48 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.45 | ||
| Fwd PE | 30.86 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.98 | ||
| EV/EBITDA | 11.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.31%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for PBPB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)
Earnings (Next)
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 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)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 Rank | Sector 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 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 | 1.18 |
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%