FIRST WATCH RESTAURANT GROUP (FWRG)
US33748L1017 - Common Stock
Overall FWRG gets a fundamental rating of 3 out of 10. We evaluated FWRG against 135 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of FWRG while its profitability can be described as average. FWRG is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
FWRG had positive earnings in the past year.
FWRG had a positive operating cash flow in the past year.
In multiple years FWRG reported negative net income over the last 5 years.
Of the past 5 years FWRG 4 years had a positive operating cash flow.
1.2 Ratios
FWRG has a Return On Assets (1.82%) which is in line with its industry peers.
FWRG has a Return On Equity (4.05%) which is comparable to the rest of the industry.
FWRG has a Return On Invested Capital of 2.45%. This is in the lower half of the industry: FWRG underperforms 65.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FWRG is significantly below the industry average of 9.90%.
The last Return On Invested Capital (2.45%) for FWRG is above the 3 year average (1.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 4.05% | ||
| ROIC | 2.45% |
ROA(3y)0.81%
ROA(5y)-1.43%
ROE(3y)1.81%
ROE(5y)-4.77%
ROIC(3y)1.9%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 2.52%, FWRG is in line with its industry, outperforming 44.78% of the companies in the same industry.
The Operating Margin of FWRG (4.97%) is worse than 61.19% of its industry peers.
In the last couple of years the Operating Margin of FWRG has grown nicely.
FWRG has a better Gross Margin (62.87%) than 72.39% of its industry peers.
In the last couple of years the Gross Margin of FWRG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.97% | ||
| PM (TTM) | 2.52% | ||
| GM | 62.87% |
OM growth 3YN/A
OM growth 5Y21.75%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.16%
GM growth 5Y-0.41%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FWRG is destroying value.
The number of shares outstanding for FWRG has been increased compared to 1 year ago.
FWRG has more shares outstanding than it did 5 years ago.
FWRG has a worse debt/assets ratio than last year.
2.2 Solvency
FWRG has an Altman-Z score of 1.70. This is a bad value and indicates that FWRG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.70, FWRG is in line with its industry, outperforming 52.24% of the companies in the same industry.
FWRG has a debt to FCF ratio of 247.52. This is a negative value and a sign of low solvency as FWRG would need 247.52 years to pay back of all of its debts.
With a Debt to FCF ratio value of 247.52, FWRG is not doing good in the industry: 64.18% of the companies in the same industry are doing better.
FWRG has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
FWRG's Debt to Equity ratio of 0.21 is fine compared to the rest of the industry. FWRG outperforms 76.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 247.52 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.28
WACC8.64%
2.3 Liquidity
FWRG has a Current Ratio of 0.60. This is a bad value and indicates that FWRG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.60, FWRG is doing worse than 70.15% of the companies in the same industry.
FWRG has a Quick Ratio of 0.60. This is a bad value and indicates that FWRG is not financially healthy enough and could expect problems in meeting its short term obligations.
FWRG has a worse Quick ratio (0.55) than 71.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 100.00% over the past year.
The Revenue has grown by 20.05% in the past year. This is a very strong growth!
FWRG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.58% yearly.
EPS 1Y (TTM)100%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-20%
Revenue 1Y (TTM)20.05%
Revenue growth 3Y37.57%
Revenue growth 5Y20.58%
Revenue growth Q2Q14.68%
3.2 Future
The Earnings Per Share is expected to grow by 22.66% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 15.09% on average over the next years. This is quite good.
EPS Next Y10.21%
EPS Next 2Y19.56%
EPS Next 3Y22.84%
EPS Next 5Y22.66%
Revenue Next Year18.94%
Revenue Next 2Y17.38%
Revenue Next 3Y16.24%
Revenue Next 5Y15.09%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 49.82, which means the current valuation is very expensive for FWRG.
The rest of the industry has a similar Price/Earnings ratio as FWRG.
The average S&P500 Price/Earnings ratio is at 28.60. FWRG is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 32.30 indicates a quite expensive valuation of FWRG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FWRG indicates a slightly more expensive valuation: FWRG is more expensive than 61.94% of the companies listed in the same industry.
FWRG is valuated expensively when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.82 | ||
| Fwd PE | 32.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FWRG is on the same level as its industry peers.
FWRG's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. FWRG is more expensive than 64.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2249.61 | ||
| EV/EBITDA | 13.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FWRG does not grow enough to justify the current Price/Earnings ratio.
FWRG's earnings are expected to grow with 22.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.88
PEG (5Y)N/A
EPS Next 2Y19.56%
EPS Next 3Y22.84%
5. Dividend
5.1 Amount
FWRG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FIRST WATCH RESTAURANT GROUP
NASDAQ:FWRG (5/17/2024, 7:00:38 PM)
After market: 18.89 -0.04 (-0.21%)18.93
-0.31 (-1.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.14B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.82 | ||
| Fwd PE | 32.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 4.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.97% | ||
| PM (TTM) | 2.52% | ||
| GM | 62.87% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)100%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y10.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.05%
Revenue growth 3Y37.57%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y