ARK RESTAURANTS CORP(NASDAQ:ARKR) stock Fundamental Analysis

Fundamental Rating

Taking everything into account, ARKR scores 3 out of 10 in our fundamental rating. ARKR was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. While ARKR seems to be doing ok healthwise, there are quite some concerns on its profitability. ARKR does not seem to be growing, but still is valued expensively.

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1. Profitability

1.1 Basic Checks

ARKR had positive earnings in the past year.

In the past year ARKR had a positive cash flow from operations.

The reported net income has been mixed in the past 5 years: ARKR reported negative net income in multiple years.

Of the past 5 years ARKR 4 years had a positive operating cash flow.

1.2 Ratios

ARKR has a Return On Assets of -1.36%. This is in the lower half of the industry: ARKR underperforms 66.67% of its industry peers.

The Return On Equity of ARKR (-4.44%) is comparable to the rest of the industry.

ARKR has a worse Return On Invested Capital (1.27%) than 72.59% of its industry peers.

The Average Return On Invested Capital over the past 3 years for ARKR is significantly below the industry average of 15.93%.

		Industry Rank	Sector Rank
ROA	-1.36%
ROE	-4.44%
ROIC	1.27%

ROA(3y)-0.47%

ROA(5y)0.71%

ROE(3y)-1.69%

ROE(5y)1.53%

ROIC(3y)3.04%

ROIC(5y)N/A

1.3 Margins

The Operating Margin of ARKR (1.15%) is worse than 73.33% of its industry peers.

ARKR's Operating Margin has declined in the last couple of years.

ARKR's Gross Margin of 72.63% is amongst the best of the industry. ARKR outperforms 88.15% of its industry peers.

ARKR's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	1.15%
PM (TTM)	N/A
GM	72.63%

OM growth 3Y-25.7%

OM growth 5Y-17.65%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.21%

GM growth 5Y-0.05%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARKR is destroying value.

The number of shares outstanding for ARKR remains at a similar level compared to 1 year ago.

Compared to 5 years ago, ARKR has more shares outstanding

ARKR has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.70, we must say that ARKR is in the distress zone and has some risk of bankruptcy.

ARKR has a Altman-Z score (1.70) which is in line with its industry peers.

ARKR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	N/A
Altman-Z	1.7

ROIC/WACC0.14

WACC9.16%

2.3 Liquidity

ARKR has a Current Ratio of 0.83. This is a bad value and indicates that ARKR is not financially healthy enough and could expect problems in meeting its short term obligations.

ARKR has a Current ratio (0.83) which is comparable to the rest of the industry.

A Quick Ratio of 0.75 indicates that ARKR may have some problems paying its short term obligations.

With a Quick ratio value of 0.75, ARKR perfoms like the industry average, outperforming 44.44% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.83
Quick Ratio	0.75

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 27.27% over the past year.

The Revenue has decreased by -2.05% in the past year.

Measured over the past years, ARKR shows a small growth in Revenue. The Revenue has been growing by 2.48% on average per year.

EPS 1Y (TTM)27.27%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-52.63%

Revenue 1Y (TTM)-2.05%

Revenue growth 3Y11.64%

Revenue growth 5Y2.48%

Sales Q2Q%-5.26%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.

No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.

No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

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4. Valuation

4.1 Price/Earnings Ratio

ARKR is valuated rather expensively with a Price/Earnings ratio of 18.86.

74.07% of the companies in the same industry are more expensive than ARKR, based on the Price/Earnings ratio.

When comparing the Price/Earnings ratio of ARKR to the average of the S&P500 Index (29.35), we can say ARKR is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	18.86
Fwd PE	N/A

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ARKR is valued cheaper than 94.07% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	5.06

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2YN/A

EPS Next 3YN/A

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 7.04%, ARKR is a good candidate for dividend investing.

The stock price of ARKR dropped by -30.89% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.

Compared to an average industry Dividend Yield of 3.25, ARKR pays a better dividend. On top of this ARKR pays more dividend than 97.04% of the companies listed in the same industry.

Compared to an average S&P500 Dividend Yield of 2.33, ARKR pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	7.04%

5.2 History

The dividend of ARKR decreases each year by -10.76%.

ARKR has been paying a dividend for at least 10 years, so it has a reliable track record.

The dividend of ARKR decreased recently.

Dividend Growth(5Y)-10.76%

Div Incr Years1

Div Non Decr Years1

5.3 Sustainability

ARKR has negative earnings and hence a negative payout ratio. The dividend may be in danger.

DP-64.32%

EPS Next 2YN/A

EPS Next 3YN/A

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ARK RESTAURANTS CORP

NASDAQ:ARKR (3/7/2025, 8:05:32 PM)

10.56

-0.1 (-0.94%)

Chartmill FA Rating

GICS SectorConsumer Discretionary

GICS IndustryGroupConsumer Services

GICS IndustryHotels, Restaurants & Leisure

Earnings (Last)02-10 2025-02-10/amc

Earnings (Next)05-12 2025-05-12

Inst Owners17.81%

Inst Owner Change-1.67%

Ins Owners49.25%

Ins Owner Change0%

Market Cap38.02M

Analysts0

Price TargetN/A

Short Float %1.27%

Short Ratio5.03

Dividend

		Industry Rank	Sector Rank
Dividend Yield	7.04%

Yearly Dividend0.56

Dividend Growth(5Y)-10.76%

DP-64.32%

Div Incr Years1

Div Non Decr Years1

Ex-DateN/A

Surprises & Revisions

EPS beat(2)N/A

Avg EPS beat(2)N/A

Min EPS beat(2)N/A

Max EPS beat(2)N/A

EPS beat(4)N/A

Avg EPS beat(4)N/A

Min EPS beat(4)N/A

Max EPS beat(4)N/A

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)N/A

Avg Revenue beat(2)N/A

Min Revenue beat(2)N/A

Max Revenue beat(2)N/A

Revenue beat(4)N/A

Avg Revenue beat(4)N/A

Min Revenue beat(4)N/A

Max Revenue beat(4)N/A

Revenue beat(8)N/A

Avg Revenue beat(8)N/A

Revenue beat(12)N/A

Avg Revenue beat(12)N/A

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)N/A

PT rev (3m)N/A

EPS NQ rev (1m)N/A

EPS NQ rev (3m)N/A

EPS NY rev (1m)N/A

EPS NY rev (3m)N/A

Revenue NQ rev (1m)N/A

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)N/A

Revenue NY rev (3m)N/A

Valuation

		Industry Rank	Sector Rank
PE	18.86
Fwd PE	N/A
P/S	0.21
P/FCF	N/A
P/OCF	13.82
P/B	0.8
P/tB	0.96
EV/EBITDA	5.06

EPS(TTM)0.56

EY5.3%

EPS(NY)N/A

Fwd EYN/A

FCF(TTM)-0.02

FCFYN/A

OCF(TTM)0.76

OCFY7.23%

SpS50.29

BVpS13.15

TBVpS11

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-1.36%
ROE	-4.44%
ROCE	1.61%
ROIC	1.27%
ROICexc	1.41%
ROICexgc	1.52%
OM	1.15%
PM (TTM)	N/A
GM	72.63%
FCFM	N/A

ROA(3y)-0.47%

ROA(5y)0.71%

ROE(3y)-1.69%

ROE(5y)1.53%

ROIC(3y)3.04%

ROIC(5y)N/A

ROICexc(3y)3.48%

ROICexc(5y)N/A

ROICexgc(3y)3.94%

ROICexgc(5y)N/A

ROCE(3y)3.85%

ROCE(5y)N/A

ROICexcg growth 3Y-22.7%

ROICexcg growth 5Y-27.86%

ROICexc growth 3Y-18.64%

ROICexc growth 5Y-23.96%

OM growth 3Y-25.7%

OM growth 5Y-17.65%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.21%

GM growth 5Y-0.05%

F-Score6

Asset Turnover1.17

Health

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	N/A
Debt/EBITDA	0
Cap/Depr	74.7%
Cap/Sales	1.56%
Interest Coverage	5.33
Cash Conversion	46.98%
Profit Quality	N/A
Current Ratio	0.83
Quick Ratio	0.75
Altman-Z	1.7

F-Score6

WACC9.16%

ROIC/WACC0.14

Cap/Depr(3y)70.85%

Cap/Depr(5y)66.57%

Cap/Sales(3y)1.63%

Cap/Sales(5y)1.77%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)27.27%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-52.63%

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)-2.05%

Revenue growth 3Y11.64%

Revenue growth 5Y2.48%

Sales Q2Q%-5.26%

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y-54.41%

EBIT growth 3Y-17.05%

EBIT growth 5Y-15.61%

EBIT Next YearN/A

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y-100.56%

FCF growth 3Y-32.6%

FCF growth 5Y-21.19%

OCF growth 1Y-82.37%

OCF growth 3Y-20.58%

OCF growth 5Y-15.21%

ARK RESTAURANTS CORP (ARKR) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens