Potbelly Corporation
Potbelly Corporation Fundamental Analysis
Potbelly Corporation (PBPB) shows weak financial fundamentals with a PE ratio of 47.97, profit margin of 2.30%, and ROE of 18.62%. The company generates $0.5B in annual revenue with weak year-over-year growth of -5.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 17.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PBPB's fundamental strength across five key dimensions:
Efficiency Score
WeakPBPB struggles to generate sufficient returns from assets.
Valuation Score
ModeratePBPB shows balanced valuation metrics.
Growth Score
WeakPBPB faces weak or negative growth trends.
Financial Health Score
WeakPBPB carries high financial risk with limited liquidity.
Profitability Score
ModeratePBPB maintains healthy but balanced margins.
Key Financial Metrics
Is PBPB Expensive or Cheap?
P/E Ratio
PBPB trades at 47.97 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PBPB's PEG of -0.64 indicates potential undervaluation.
Price to Book
The market values Potbelly Corporation at 8.42 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.46 times EBITDA. This signals the market has high growth expectations.
How Well Does PBPB Make Money?
Net Profit Margin
For every $100 in sales, Potbelly Corporation keeps $2.30 as profit after all expenses.
Operating Margin
Core operations generate 2.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.62 in profit for every $100 of shareholder equity.
ROA
Potbelly Corporation generates $4.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Potbelly Corporation generates limited operating cash flow of $38.26M, signaling weaker underlying cash strength.
Free Cash Flow
Potbelly Corporation produces free cash flow of $16.79M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.56 in free cash annually.
FCF Yield
PBPB converts 3.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
47.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How PBPB Stacks Against Its Sector Peers
| Metric | PBPB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 47.97 | 25.25 | Worse (Expensive) |
| ROE | 18.62% | 1170.00% | Weak |
| Net Margin | 2.30% | 742.00% | Weak |
| Debt/Equity | 2.41 | 0.77 | Weak (High Leverage) |
| Current Ratio | 0.50 | 9.19 | Weak Liquidity |
| ROA | 4.06% | -6467.00% (disorted) | Weak |
PBPB 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 Potbelly Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-9.75%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
236.56%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-13.49%
Industry Style: Cyclical, Growth, Discretionary
Declining