RAVE RESTAURANT GROUP INC (RAVE) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:RAVE • US7541981095

3.34 USD

-0.05 (-1.47%)

Last: Jan 30, 2026, 08:15 PM

Fundamental Rating

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. RAVE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RAVE has a valuation in line with the averages, but on the other hand it scores bad on growth.

Quickly go to:

1. Profitability

1.1 Basic Checks

In the past year RAVE was profitable.
In the past year RAVE had a positive cash flow from operations.
RAVE had positive earnings in each of the past 5 years.
Each year in the past 5 years RAVE had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 16.59%, RAVE belongs to the top of the industry, outperforming 94.70% of the companies in the same industry.
With a decent Return On Equity value of 19.01%, RAVE is doing good in the industry, outperforming 77.27% of the companies in the same industry.
RAVE has a better Return On Invested Capital (17.10%) than 86.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RAVE is significantly above the industry average of 10.37%.
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 has a Profit Margin of 23.12%. This is amongst the best in the industry. RAVE outperforms 93.94% of its industry peers.
In the last couple of years the Profit Margin of RAVE has declined.
RAVE's Operating Margin of 27.91% is amongst the best of the industry. RAVE outperforms 94.70% of its industry peers.
In the last couple of years the Operating Margin of RAVE has grown nicely.

		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

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

RAVE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, RAVE has less shares outstanding
The number of shares outstanding for RAVE has been reduced compared to 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

An Altman-Z score of 16.14 indicates that RAVE is not in any danger for bankruptcy at the moment.
RAVE has a better Altman-Z score (16.14) than 98.48% of its industry peers.
RAVE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	16.14

ROIC/WACC1.92

WACC8.9%

2.3 Liquidity

A Current Ratio of 7.57 indicates that RAVE has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 7.57, RAVE belongs to the top of the industry, outperforming 97.73% of the companies in the same industry.
RAVE has a Quick 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 Quick ratio (7.57) than 97.73% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	7.57
Quick Ratio	7.57

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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
The Revenue has been growing slightly by 0.35% in the past year.
Measured over the past years, RAVE shows a small growth in Revenue. The Revenue has been growing by 3.72% on average per year.

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 16.70, which indicates a correct valuation of RAVE.
75.00% of the companies in the same industry are more expensive than RAVE, based on the Price/Earnings ratio.
RAVE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.30.

		Industry Rank	Sector Rank
PE	16.7
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 81.82% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RAVE is valued cheaply inside the industry as 84.85% of the companies are valued more expensively.