RAVE Restaurant Group, Inc.
RAVE Restaurant Group, Inc. Fundamental Analysis
RAVE Restaurant Group, Inc. (RAVE) shows moderate financial fundamentals with a PE ratio of 15.05, profit margin of 23.04%, and ROE of 19.70%. The company generates $0.0B in annual revenue with weak year-over-year growth of -0.91%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RAVE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentRAVE demonstrates superior asset utilization.
Valuation Score
ExcellentRAVE trades at attractive valuation levels.
Growth Score
ModerateRAVE shows steady but slowing expansion.
Financial Health Score
ExcellentRAVE maintains a strong and stable balance sheet.
Profitability Score
ExcellentRAVE achieves industry-leading margins.
Key Financial Metrics
Is RAVE Expensive or Cheap?
P/E Ratio
RAVE trades at 15.05 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RAVE's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values RAVE Restaurant Group, Inc. at 2.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.05 times EBITDA. This signals the market has high growth expectations.
How Well Does RAVE Make Money?
Net Profit Margin
For every $100 in sales, RAVE Restaurant Group, Inc. keeps $23.04 as profit after all expenses.
Operating Margin
Core operations generate 28.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.70 in profit for every $100 of shareholder equity.
ROA
RAVE Restaurant Group, Inc. generates $16.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RAVE Restaurant Group, Inc. generates strong operating cash flow of $3.09M, reflecting robust business health.
Free Cash Flow
RAVE Restaurant Group, Inc. generates strong free cash flow of $3.05M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.21 in free cash annually.
FCF Yield
RAVE converts 6.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
8.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How RAVE Stacks Against Its Sector Peers
| Metric | RAVE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.05 | 25.25 | Better (Cheaper) |
| ROE | 19.70% | 1170.00% | Weak |
| Net Margin | 23.04% | 742.00% | Weak |
| Debt/Equity | 0.03 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 8.50 | 9.19 | Strong Liquidity |
| ROA | 16.25% | -6467.00% (disorted) | Strong |
RAVE outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RAVE 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
25.39%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
166.67%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
1085.01%
Industry Style: Cyclical, Growth, Discretionary
High Growth