Potbelly Corporation Fundamental Analysis (NASDAQ: PBPB)
Potbelly Corporation (NASDAQ: PBPB) shows weak financial fundamentals with a PE ratio of 12.68, profit margin of 8.71%, and ROE of 1.10%. The company generates $0.5B 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 36.4/100 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
ExcellentPBPB demonstrates superior asset utilization.
Valuation Score
ExcellentPBPB trades at attractive valuation levels.
Growth Score
ModeratePBPB shows steady but slowing expansion.
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 12.68 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PBPB's PEG of -0.18 indicates potential undervaluation.
Price to Book
The market values Potbelly Corporation at 8.75 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.61 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 $8.71 as profit after all expenses.
Operating Margin
Core operations generate 2.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.10 in profit for every $100 of shareholder equity.
ROA
Potbelly Corporation generates $15.31 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 $19.94M, signaling weaker underlying cash strength.
Free Cash Flow
Potbelly Corporation generates weak or negative free cash flow of $384.31K, restricting financial flexibility.
FCF Per Share
Each share generates $0.01 in free cash annually.
FCF Yield
PBPB converts 0.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.10
vs 25 benchmark
ROA
Return on assets percentage
0.15
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 | 12.68 | 24.00 | Better (Cheaper) |
| ROE | 110.27% | 980.00% | Weak |
| Net Margin | 8.71% | -3386.00% (disorted) | Weak |
| Debt/Equity | 2.65 | 0.60 | Weak (High Leverage) |
| Current Ratio | 0.51 | 2.34 | Weak Liquidity |
| ROA | 15.31% | 350.00% | Weak |
PBPB outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
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
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