Rocky Mountain Chocolate Factory, Inc. (RMCF) 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

Seneca Foods Corp.

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SunOpta, Inc.

Rocky Mountain Chocolate Factory, Inc.

BRC, Inc.

Westrock Coffee Co.

Bridgford Foods Corp.

Farmer Brothers Co.

Planet Green Holdings Corp.

YanGuFang International Group Co., Ltd.

Why is Rocky Mountain Chocolate Factory, Inc. ?

Poor Management Efficiency with a low ROE of 1.70%

The company has been able to generate a Return on Equity (avg) of 1.70% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.86% and Operating profit at 0.36% over the last 5 years

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 60.74%, its profits have risen by 16.2%

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 FMCG)

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

Is Rocky Mountain Chocolate Factory, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rocky Mountain Chocolate Factory, Inc.

60.74%

-0.27

78.28%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.86%

EBIT Growth (5y)

0.36%

EBIT to Interest (avg)

-2.92

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.82

Sales to Capital Employed (avg)

2.13

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

37.24%

ROCE (avg)

2.73%

ROE (avg)

1.70%

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

3.88

EV to EBIT

-9.54

EV to EBITDA

-15.51

EV to Capital Employed

2.27

EV to Sales

1.04

PEG Ratio

Dividend Yield

ROCE (Latest)

-23.83%

ROE (Latest)

-67.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Bullish

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

19What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD -0.19 MM

RAW MATERIAL COST(Y)

Fallen by -59.95% (YoY

OPERATING PROFIT(Q)

Highest at USD 0.43 MM

OPERATING PROFIT MARGIN(Q)

Highest at 5.66 %

PRE-TAX PROFIT(Q)

Highest at USD -0.15 MM

NET PROFIT(Q)

Highest at USD -0.15 MM

EPS(Q)

Highest at USD -0.02

-9What is not working for the Company

INTEREST(HY)

At USD 0.43 MM has Grown at 94.17%

DEBT-EQUITY RATIO (HY)

Highest at 142.87 %

Here's what is working for Rocky Mountain Chocolate Factory, Inc.

Pre-Tax Profit

At USD -0.15 MM has Grown at 86.89%

over average net sales of the previous four periods of USD -1.18 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD -0.15 MM has Grown at 86.89%

over average net sales of the previous four periods of USD -1.18 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow

Highest at USD -0.19 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Operating Profit

Highest at USD 0.43 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 5.66 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD -0.15 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD -0.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD -0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -59.95% (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 Rocky Mountain Chocolate Factory, Inc.

Interest

At USD 0.43 MM has Grown at 94.17%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 142.87 % 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