FAT Brands, Inc. (FAT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Carrols Restaurant Group, Inc.

Biglari Holdings, Inc.

El Pollo Loco Holdings, Inc.

Potbelly Corp.

TH International Ltd.

Red Robin Gourmet Burgers, Inc.

Noodles & Co.

Nathan's Famous, Inc.

FAT Brands, Inc.

The ONE Group Hospitality, Inc.

Fiesta Restaurant Group, Inc.

Why is FAT Brands, Inc. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -287.24% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared Negative results for the last 4 consecutive quarters

DEBT-EQUITY RATIO (HY) Highest at -288.75 %
DIVIDEND PER SHARE(HY) Lowest at USD 30.42
INTEREST(Q) Highest at USD 39.37 MM

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -81.15%, its profits have fallen by -75.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -81.15% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is FAT Brands, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

FAT Brands, Inc.

-83.44%

-0.94

85.91%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

97.39%

EBIT Growth (5y)

-287.24%

EBIT to Interest (avg)

Debt to EBITDA (avg)

48.71

Net Debt to Equity (avg)

-2.70

Sales to Capital Employed (avg)

0.55

Tax Ratio

2.23%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

8.80%

ROCE (avg)

0.71%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-0.09

EV to EBIT

-48.47

EV to EBITDA

103.14

EV to Capital Employed

1.64

EV to Sales

2.36

PEG Ratio

Dividend Yield

10.64%

ROCE (Latest)

-3.39%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

NET PROFIT(HY)

Higher at USD -100.01 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 30.42 times

RAW MATERIAL COST(Y)

Fallen by -0.42% (YoY

-16What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -288.75 %

DIVIDEND PER SHARE(HY)

Lowest at USD 30.42

INTEREST(Q)

Highest at USD 39.37 MM

OPERATING PROFIT(Q)

Lowest at USD -7.18 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -4.89 %

PRE-TAX PROFIT(Q)

Lowest at USD -54.91 MM

NET PROFIT(Q)

Lowest at USD -54.19 MM

Here's what is working for FAT Brands, Inc.

Debtors Turnover Ratio

Highest at 30.42 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.42% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for FAT Brands, Inc.

Pre-Tax Profit

At USD -54.91 MM has Fallen at -46.6%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -54.19 MM has Fallen at -37.68%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at -288.75 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at USD 39.37 MM

in the last five periods and Increased by 9.78% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD -7.18 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at -4.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -54.91 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -54.19 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Dividend per share

Lowest at USD 30.42

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)