Good Times Restaurants Inc.
Good Times Restaurants Inc. Fundamental Analysis
Good Times Restaurants Inc. (GTIM) shows weak financial fundamentals with a PE ratio of 12.27, profit margin of 0.75%, and ROE of 3.18%. The company generates $0.1B in annual revenue with weak year-over-year growth of -0.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 13.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GTIM's fundamental strength across five key dimensions:
Efficiency Score
WeakGTIM struggles to generate sufficient returns from assets.
Valuation Score
ModerateGTIM shows balanced valuation metrics.
Growth Score
WeakGTIM faces weak or negative growth trends.
Financial Health Score
WeakGTIM carries high financial risk with limited liquidity.
Profitability Score
WeakGTIM struggles to sustain strong margins.
Key Financial Metrics
Is GTIM Expensive or Cheap?
P/E Ratio
GTIM trades at 12.27 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GTIM's PEG of 6.96 indicates potential overvaluation.
Price to Book
The market values Good Times Restaurants Inc. at 0.38 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -5.24 times EBITDA. This is generally considered low.
How Well Does GTIM Make Money?
Net Profit Margin
For every $100 in sales, Good Times Restaurants Inc. keeps $0.75 as profit after all expenses.
Operating Margin
Core operations generate 0.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.18 in profit for every $100 of shareholder equity.
ROA
Good Times Restaurants Inc. generates $1.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Good Times Restaurants Inc. generates limited operating cash flow of $3.55M, signaling weaker underlying cash strength.
Free Cash Flow
Good Times Restaurants Inc. generates weak or negative free cash flow of $1.71M, restricting financial flexibility.
FCF Per Share
Each share generates $0.16 in free cash annually.
FCF Yield
GTIM converts 13.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.96
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.45
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
0.008
vs 25 benchmark
How GTIM Stacks Against Its Sector Peers
| Metric | GTIM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.27 | 24.85 | Better (Cheaper) |
| ROE | 3.18% | 1165.00% | Weak |
| Net Margin | 0.75% | 749.00% | Weak |
| Debt/Equity | 1.20 | 0.76 | Weak (High Leverage) |
| Current Ratio | 0.45 | 9.23 | Weak Liquidity |
| ROA | 1.26% | 1271.00% | Weak |
GTIM outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Good Times Restaurants Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.01%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
108.73%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-77.13%
Industry Style: Cyclical, Growth, Discretionary
Declining