First Watch Restaurant Group, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Brinker International, Inc.

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Sweetgreen, Inc.

Cheesecake Factory, Inc.

Shake Shack, Inc.

First Watch Restaurant Group, Inc.

Bloomin' Brands, Inc.

Cracker Barrel Old Country Store, Inc.

Cannae Holdings, Inc.

Jack in the Box, Inc.

Papa John's International, Inc.

Why is First Watch Restaurant Group, Inc. ?

Healthy long term growth as Net Sales has grown by an annual rate of 34.11% and Operating profit at 104.49%

Flat results in Jun 26

NET SALES(HY) At USD 330.96 MM has Grown at -43.92%
PRE-TAX PROFIT(Q) At USD 0 MM has Fallen at -100%
ROCE(HY) Lowest at 0%

With ROCE of 3.54%, it has a expensive valuation with a 1.00 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -30.19%, its profits have risen by 1.9% ; the PEG ratio of the company is 22.8

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -30.19% 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 hold?

Overall Portfolio exposure to First Watch Restaurant Group, Inc. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is First Watch Restaurant Group, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

First Watch Restaurant Group, Inc.

-30.19%

-0.60

52.32%

S&P 500

22.36%

1.70

13.18%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

34.11%

EBIT Growth (5y)

104.49%

EBIT to Interest (avg)

2.88

Debt to EBITDA (avg)

1.56

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

1.21

Tax Ratio

33.95%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

4.70%

ROE (avg)

2.66%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.01

EV to EBIT

28.36

EV to EBITDA

8.80

EV to Capital Employed

1.00

EV to Sales

0.78

PEG Ratio

22.79

Dividend Yield

ROCE (Latest)

3.54%

ROE (Latest)

3.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-17What is not working for the Company

NET SALES(HY)

At USD 330.96 MM has Grown at -43.92%

PRE-TAX PROFIT(Q)

At USD 0 MM has Fallen at -100%

ROCE(HY)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 108.01% (YoY

CASH AND EQV(HY)

Lowest at USD 23.57 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

OPERATING PROFIT(Q)

Lowest at USD 0 MM

Here's what is not working for First Watch Restaurant Group, Inc.

Net Sales

At USD 330.96 MM has Grown at -43.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Pre-Tax Profit

At USD 0 MM has Fallen at -100%

over average net sales of the previous four periods of USD 4.01 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Operating Profit

Lowest at USD 0 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Cash and Eqv

Lowest at USD 23.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 108.01% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales