ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Rocky Mountain Chocolate Factory, Inc. ?
1
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
2
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
- INTEREST(HY) At USD 0.46 MM has Grown at 29.78%
- ROCE(HY) Lowest at -74.73%
- DEBT-EQUITY RATIO (HY) Highest at 127.86 %
3
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 11.97%, its profits have risen by 16.2%
4
Underperformed the market in the last 1 year
- The stock has generated a return of 11.97% in the last 1 year, much lower than market (S&P 500) returns of 22.24%
Real-Time Research ReportHow 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.
2.74%
-0.55
76.50%
S&P 500
20.78%
1.67
13.28%
Quality
Management Risk
Growth
Capital StructureQuality 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
0
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
32.58%
ROCE (avg)
2.73%
ROE (avg)
1.70%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
3.53
EV to EBIT
-8.88
EV to EBITDA
-14.43
EV to Capital Employed
2.12
EV to Sales
0.97
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-23.83%
ROE (Latest)
-67.20%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD -1.81 MM
NET PROFIT(HY)
Higher at USD -3.57 MM
-25What is not working for the Company
INTEREST(HY)
At USD 0.46 MM has Grown at 29.78%
ROCE(HY)
Lowest at -74.73%
DEBT-EQUITY RATIO
(HY)
Highest at 127.86 %
RAW MATERIAL COST(Y)
Grown by 282.45% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 8.95 times
NET SALES(Q)
At USD 6.76 MM has Fallen at -8.79%
OPERATING PROFIT(Q)
Lowest at USD -2.68 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -39.6 %
PRE-TAX PROFIT(Q)
Lowest at USD -3.23 MM
NET PROFIT(Q)
Lowest at USD -3.42 MM
EPS(Q)
Lowest at USD -0.42
Here's what is working for Rocky Mountain Chocolate Factory, Inc.
Operating Cash Flow
Highest at USD -1.81 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Here's what is not working for Rocky Mountain Chocolate Factory, Inc.
Pre-Tax Profit
At USD -3.23 MM has Fallen at -220.32%
over average net sales of the previous four periods of USD -1.01 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD -3.42 MM has Fallen at -238.85%
over average net sales of the previous four periods of USD -1.01 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Interest
At USD 0.46 MM has Grown at 29.78%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 127.86 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Net Sales
At USD 6.76 MM has Fallen at -8.79%
over average net sales of the previous four periods of USD 7.41 MMMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Operating Profit
Lowest at USD -2.68 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at -39.6 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD -3.23 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD -3.42 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD -0.42
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Lowest at 8.95 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 282.45% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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