First Watch Restaurant Group, Inc.
First Watch Restaurant Group, Inc. Fundamental Analysis
First Watch Restaurant Group, Inc. (FWRG) shows weak financial fundamentals with a PE ratio of 39.00, profit margin of 1.47%, and ROE of 2.96%. The company generates $1.2B in annual revenue with strong year-over-year growth of 13.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FWRG's fundamental strength across five key dimensions:
Efficiency Score
WeakFWRG struggles to generate sufficient returns from assets.
Valuation Score
ModerateFWRG shows balanced valuation metrics.
Growth Score
ModerateFWRG shows steady but slowing expansion.
Financial Health Score
WeakFWRG carries high financial risk with limited liquidity.
Profitability Score
WeakFWRG struggles to sustain strong margins.
Key Financial Metrics
Is FWRG Expensive or Cheap?
P/E Ratio
FWRG trades at 39.00 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FWRG's PEG of 0.13 indicates potential undervaluation.
Price to Book
The market values First Watch Restaurant Group, Inc. at 1.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.13 times EBITDA. This is generally considered low.
How Well Does FWRG Make Money?
Net Profit Margin
For every $100 in sales, First Watch Restaurant Group, Inc. keeps $1.47 as profit after all expenses.
Operating Margin
Core operations generate 2.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.96 in profit for every $100 of shareholder equity.
ROA
First Watch Restaurant Group, Inc. generates $1.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
First Watch Restaurant Group, Inc. produces operating cash flow of $126.27M, showing steady but balanced cash generation.
Free Cash Flow
First Watch Restaurant Group, Inc. generates weak or negative free cash flow of $-31.08M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.51 in free cash annually.
FCF Yield
FWRG converts -4.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
39.00
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How FWRG Stacks Against Its Sector Peers
| Metric | FWRG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 39.00 | 23.49 | Worse (Expensive) |
| ROE | 2.96% | 1160.00% | Weak |
| Net Margin | 1.47% | 672.00% | Weak |
| Debt/Equity | 1.18 | 0.73 | Weak (High Leverage) |
| Current Ratio | 0.29 | 2.56 | Weak Liquidity |
| ROA | 1.03% | -8277.00% (disorted) | Weak |
FWRG 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 First Watch Restaurant Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
127.73%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
140.71%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
427.14%
Industry Style: Cyclical, Growth, Discretionary
High Growth