BJ's Restaurants, Inc.
BJ's Restaurants, Inc. Fundamental Analysis
BJ's Restaurants, Inc. (BJRI) shows weak financial fundamentals with a PE ratio of 29.15, profit margin of 2.23%, and ROE of 8.33%. The company generates $1.4B in annual revenue with weak year-over-year growth of 1.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BJRI's fundamental strength across five key dimensions:
Efficiency Score
WeakBJRI struggles to generate sufficient returns from assets.
Valuation Score
WeakBJRI trades at a premium to fair value.
Growth Score
WeakBJRI faces weak or negative growth trends.
Financial Health Score
WeakBJRI carries high financial risk with limited liquidity.
Profitability Score
WeakBJRI struggles to sustain strong margins.
Key Financial Metrics
Is BJRI Expensive or Cheap?
P/E Ratio
BJRI trades at 29.15 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BJRI's PEG of 2.39 indicates potential overvaluation.
Price to Book
The market values BJ's Restaurants, Inc. at 2.53 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.22 times EBITDA. This is generally considered low.
How Well Does BJRI Make Money?
Net Profit Margin
For every $100 in sales, BJ's Restaurants, Inc. keeps $2.23 as profit after all expenses.
Operating Margin
Core operations generate 2.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.33 in profit for every $100 of shareholder equity.
ROA
BJ's Restaurants, Inc. generates $3.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BJ's Restaurants, Inc. generates limited operating cash flow of $124.90M, signaling weaker underlying cash strength.
Free Cash Flow
BJ's Restaurants, Inc. produces free cash flow of $49.72M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.25 in free cash annually.
FCF Yield
BJRI converts 5.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How BJRI Stacks Against Its Sector Peers
| Metric | BJRI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.15 | 25.25 | Worse (Expensive) |
| ROE | 8.33% | 1170.00% | Weak |
| Net Margin | 2.23% | 742.00% | Weak |
| Debt/Equity | 1.41 | 0.77 | Weak (High Leverage) |
| Current Ratio | 0.36 | 9.19 | Weak Liquidity |
| ROA | 3.02% | -6467.00% (disorted) | Weak |
BJRI outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BJ's Restaurants, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
2.48%
Industry Style: Cyclical, Growth, Discretionary
GrowingEPS CAGR
-67.65%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-23.29%
Industry Style: Cyclical, Growth, Discretionary
Declining