FAT Brands Inc. Fundamental Analysis (NASDAQ: FAT)
FAT Brands Inc. (NASDAQ: FAT) shows moderate financial fundamentals with a PE ratio of -0.02, profit margin of -39.19%, and ROE of 20.03%. The company generates $0.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FAT's fundamental strength across five key dimensions:
Efficiency Score
WeakFAT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFAT trades at attractive valuation levels.
Growth Score
WeakFAT faces weak or negative growth trends.
Financial Health Score
ModerateFAT shows balanced financial health with some risks.
Profitability Score
WeakFAT struggles to sustain strong margins.
Key Financial Metrics
Is FAT Expensive or Cheap?
P/E Ratio
FAT trades at -0.02 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FAT's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values FAT Brands Inc. at -0.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 91.70 times EBITDA. This signals the market has high growth expectations.
How Well Does FAT Make Money?
Net Profit Margin
For every $100 in sales, FAT Brands Inc. keeps $-39.19 as profit after all expenses.
Operating Margin
Core operations generate -11.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.03 in profit for every $100 of shareholder equity.
ROA
FAT Brands Inc. generates $-9.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
FAT Brands Inc. generates limited operating cash flow of $-43.03M, signaling weaker underlying cash strength.
Free Cash Flow
FAT Brands Inc. generates weak or negative free cash flow of $-47.94M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.58 in free cash annually.
FCF Yield
FAT converts -15.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-0.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
-0.00
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.01
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
-0.09
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How FAT Stacks Against Its Sector Peers
| Metric | FAT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -0.02 | 24.00 | Better (Cheaper) |
| ROE | 20.03% | 980.00% | Weak |
| Net Margin | -39.19% | -3386.00% (disorted) | Weak |
| Debt/Equity | -2.53 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 0.03 | 2.34 | Weak Liquidity |
| ROA | -9.29% | 350.00% | Weak |
FAT outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews FAT Brands Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary