3.28 USD
+0.11 (+3.47%)
We assign a fundamental rating of 6 out of 10 to RAVE. RAVE was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. Both the health and profitability get an excellent rating, making RAVE a very profitable company, without any liquidiy or solvency issues. RAVE has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year RAVE was profitable.
- RAVE had a positive operating cash flow in the past year.
- Each year in the past 5 years RAVE has been profitable.
- RAVE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 16.59%, RAVE belongs to the best of the industry, outperforming 94.70% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 19.01%, RAVE is in the better half of the industry, outperforming 76.52% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 17.10%, RAVE belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for RAVE is significantly above the industry average of 10.36%.
- The last Return On Invested Capital (17.10%) for RAVE is above the 3 year average (15.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.59% | ||
| ROE | 19.01% | ||
| ROIC | 17.1% |
ROA(3y)14.42%
ROA(5y)19.59%
ROE(3y)18.02%
ROE(5y)28.08%
ROIC(3y)15.79%
ROIC(5y)12.77%
1.3 Margins
- RAVE's Profit Margin of 23.12% is amongst the best of the industry. RAVE outperforms 93.94% of its industry peers.
- RAVE's Profit Margin has declined in the last couple of years.
- RAVE has a Operating Margin of 27.91%. This is amongst the best in the industry. RAVE outperforms 94.70% of its industry peers.
- RAVE's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.91% | ||
| PM (TTM) | 23.12% | ||
| GM | N/A |
OM growth 3Y18.79%
OM growth 5Y27.74%
PM growth 3Y-33.12%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RAVE is creating value.
- The number of shares outstanding for RAVE has been reduced compared to 1 year ago.
- RAVE has less shares outstanding than it did 5 years ago.
- RAVE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- RAVE has an Altman-Z score of 15.27. This indicates that RAVE is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of RAVE (15.27) is better than 98.48% of its industry peers.
- There is no outstanding debt for RAVE. 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 | 15.27 |
ROIC/WACC1.93
WACC8.88%
2.3 Liquidity
- RAVE has a Current Ratio of 7.57. This indicates that RAVE is financially healthy and has no problem in meeting its short term obligations.
- RAVE has a better Current ratio (7.57) than 97.73% of its industry peers.
- A Quick Ratio of 7.57 indicates that RAVE has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 7.57, RAVE belongs to the best of the industry, outperforming 97.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.57 | ||
| Quick Ratio | 7.57 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 10.10% over the past year.
- The earnings per share for RAVE have been decreasing by -25.56% on average. This is quite bad
- Looking at the last year, RAVE shows a small growth in Revenue. The Revenue has grown by 0.35% in the last year.
- RAVE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.72% yearly.
EPS 1Y (TTM)10.1%
EPS 3Y-25.56%
EPS 5YN/A
EPS Q2Q%27.32%
Revenue 1Y (TTM)0.35%
Revenue growth 3Y4.04%
Revenue growth 5Y3.72%
Sales Q2Q%5.34%
3.2 Future
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 16.40, RAVE is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of RAVE indicates a somewhat cheap valuation: RAVE is cheaper than 78.79% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. RAVE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.4 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- RAVE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RAVE is cheaper than 86.36% of the companies in the same industry.
- 87.88% of the companies in the same industry are more expensive than RAVE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.68 | ||
| EV/EBITDA | 7.06 |
4.3 Compensation for Growth
- RAVE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for RAVE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
RAVE RESTAURANT GROUP INC / RAVE FAQ
Can you provide the ChartMill fundamental rating for RAVE RESTAURANT GROUP INC?
ChartMill assigns a fundamental rating of 6 / 10 to RAVE.
What is the valuation status for RAVE stock?
ChartMill assigns a valuation rating of 5 / 10 to RAVE RESTAURANT GROUP INC (RAVE). This can be considered as Fairly Valued.
Can you provide the profitability details for RAVE RESTAURANT GROUP INC?
RAVE RESTAURANT GROUP INC (RAVE) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for RAVE stock?
The Price/Earnings (PE) ratio for RAVE RESTAURANT GROUP INC (RAVE) is 16.4 and the Price/Book (PB) ratio is 3.14.