Biglari Holdings Inc. Fundamental Analysis (NYSE: BH)
Biglari Holdings Inc. (NYSE: BH) shows moderate financial fundamentals with a PE ratio of -40.05, profit margin of -7.33%, and ROE of -5.49%. The company generates $0.4B in annual revenue with moderate year-over-year growth of 9.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BH's fundamental strength across five key dimensions:
Efficiency Score
WeakBH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBH trades at attractive valuation levels.
Growth Score
ModerateBH shows steady but slowing expansion.
Financial Health Score
ExcellentBH maintains a strong and stable balance sheet.
Profitability Score
WeakBH struggles to sustain strong margins.
Key Financial Metrics
Is BH Expensive or Cheap?
P/E Ratio
BH trades at -40.05 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BH's PEG of 0.42 indicates potential undervaluation.
Price to Book
The market values Biglari Holdings Inc. at 2.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 45.87 times EBITDA. This signals the market has high growth expectations.
How Well Does BH Make Money?
Net Profit Margin
For every $100 in sales, Biglari Holdings Inc. keeps $-7.33 as profit after all expenses.
Operating Margin
Core operations generate 9.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-5.49 in profit for every $100 of shareholder equity.
ROA
Biglari Holdings Inc. generates $-2.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Biglari Holdings Inc. produces operating cash flow of $83.92M, showing steady but balanced cash generation.
Free Cash Flow
Biglari Holdings Inc. generates strong free cash flow of $49.94M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $15.91 in free cash annually.
FCF Yield
BH converts 4.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-40.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.003
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.05
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How BH Stacks Against Its Sector Peers
| Metric | BH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -40.05 | 26.29 | Better (Cheaper) |
| ROE | -5.49% | 966.00% | Weak |
| Net Margin | -7.33% | -4927.00% (disorted) | Weak |
| Debt/Equity | 0.53 | 0.60 | Neutral |
| Current Ratio | 2.45 | 2.32 | Strong Liquidity |
| ROA | -2.81% | 295.00% | Weak |
BH outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Biglari Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-49.30%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
45.11%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-49.39%
Industry Style: Cyclical, Growth, Discretionary
Declining