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FAT BRANDS INC-CL A (FAT) Stock Fundamental Analysis

NASDAQ:FAT - Nasdaq - US30258N1054 - Common Stock - Currency: USD

3.5  -0.1 (-2.78%)

After market: 3.66 +0.16 (+4.57%)

Fundamental Rating

1

FAT gets a fundamental rating of 1 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and financial health of FAT have multiple concerns. While showing a medium growth rate, FAT is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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1. Profitability

1.1 Basic Checks

In the past year FAT has reported negative net income.
FAT had a negative operating cash flow in the past year.
In the past 5 years FAT always reported negative net income.
In multiple years FAT reported negative operating cash flow during the last 5 years.
FAT Yearly Net Income VS EBIT VS OCF VS FCFFAT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 0 -50M -100M

1.2 Ratios

FAT has a Return On Assets of -11.66%. This is amonst the worse of the industry: FAT underperforms 88.55% of its industry peers.
Industry RankSector Rank
ROA -11.66%
ROE N/A
ROIC N/A
ROA(3y)-6.63%
ROA(5y)-6.68%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
FAT Yearly ROA, ROE, ROICFAT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 0 50 -50

1.3 Margins

In the last couple of years the Operating Margin of FAT has declined.
FAT does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5Y-26.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
FAT Yearly Profit, Operating, Gross MarginsFAT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40 -60 -80

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2. Health

2.1 Basic Checks

FAT does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for FAT has been increased compared to 1 year ago.
FAT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FAT has about the same debt to assets ratio.
FAT Yearly Shares OutstandingFAT Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M
FAT Yearly Total Debt VS Total AssetsFAT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

Based on the Altman-Z score of -0.15, we must say that FAT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.15, FAT is doing worse than 83.97% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -0.15
ROIC/WACCN/A
WACC8.39%
FAT Yearly LT Debt VS Equity VS FCFFAT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M 800M 1B

2.3 Liquidity

FAT has a Current Ratio of 0.30. This is a bad value and indicates that FAT is not financially healthy enough and could expect problems in meeting its short term obligations.
FAT has a worse Current ratio (0.30) than 90.84% of its industry peers.
FAT has a Quick Ratio of 0.30. This is a bad value and indicates that FAT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.27, FAT is doing worse than 87.79% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.3
Quick Ratio 0.27
FAT Yearly Current Assets VS Current LiabilitesFAT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

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5

3. Growth

3.1 Past

FAT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.73%.
FAT shows a strong growth in Revenue. In the last year, the Revenue has grown by 42.36%.
The Revenue has been growing by 93.31% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-22.73%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-72.33%
Revenue 1Y (TTM)42.36%
Revenue growth 3Y198.3%
Revenue growth 5Y93.31%
Sales Q2Q%31.09%

3.2 Future

Based on estimates for the next years, FAT will show a decrease in Earnings Per Share. The EPS will decrease by -9.07% on average per year.
FAT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.90% yearly.
EPS Next Y-80.95%
EPS Next 2Y-9.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year28.09%
Revenue Next 2Y18.9%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
FAT Yearly Revenue VS EstimatesFAT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
FAT Yearly EPS VS EstimatesFAT Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -2 -4 -6 -8 -10

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for FAT. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for FAT. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
FAT Price Earnings VS Forward Price EarningsFAT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30 40 50

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FAT indicates a slightly more expensive valuation: FAT is more expensive than 79.39% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 43.07
FAT Per share dataFAT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 -40 -60

4.3 Compensation for Growth

FAT's earnings are expected to decrease with -9.07% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.07%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

FAT has a Yearly Dividend Yield of 15.56%, which is a nice return.
In the last 3 months the price of FAT has falen by -34.21%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
FAT's Dividend Yield is rather good when compared to the industry average which is at 3.08. FAT pays more dividend than 99.24% of the companies in the same industry.
FAT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
Industry RankSector Rank
Dividend Yield 15.56%

5.2 History

FAT has been paying a dividend for over 5 years, so it has already some track record.
FAT has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years2
FAT Yearly Dividends per shareFAT Yearly Dividends per shareYearly Dividends per share 2018 2019 2021 2022 2023 2024 0.2 0.4 0.6

5.3 Sustainability

The earnings of FAT are negative and hence is the payout ratio. FAT will probably not be able to sustain this dividend level.
DP-10.92%
EPS Next 2Y-9.07%
EPS Next 3YN/A
FAT Yearly Income VS Free CF VS DividendFAT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2017 2018 2019 2020 2021 2022 2023 0 -50M -100M

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FAT BRANDS INC-CL A

NASDAQ:FAT (2/21/2025, 8:16:50 PM)

After market: 3.66 +0.16 (+4.57%)

3.5

-0.1 (-2.78%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)10-30 2024-10-30/amc
Earnings (Next)03-19 2025-03-19/amc
Inst Owners8.21%
Inst Owner Change-97.73%
Ins Owners11.79%
Ins Owner Change0.38%
Market Cap60.16M
Analysts80
Price Target15.3 (337.14%)
Short Float %2.1%
Short Ratio1.89
Dividend
Industry RankSector Rank
Dividend Yield 15.56%
Yearly Dividend0.98
Dividend Growth(5Y)N/A
DP-10.92%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-82.26%
Min EPS beat(2)-98.02%
Max EPS beat(2)-66.5%
EPS beat(4)0
Avg EPS beat(4)-75.78%
Min EPS beat(4)-104.94%
Max EPS beat(4)-33.64%
EPS beat(8)1
Avg EPS beat(8)-73.27%
EPS beat(12)2
Avg EPS beat(12)-87.33%
EPS beat(16)2
Avg EPS beat(16)-118.3%
Revenue beat(2)0
Avg Revenue beat(2)-5.78%
Min Revenue beat(2)-9.01%
Max Revenue beat(2)-2.55%
Revenue beat(4)1
Avg Revenue beat(4)-2.92%
Min Revenue beat(4)-9.01%
Max Revenue beat(4)4.43%
Revenue beat(8)2
Avg Revenue beat(8)-1.71%
Revenue beat(12)4
Avg Revenue beat(12)2.21%
Revenue beat(16)7
Avg Revenue beat(16)8.14%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)12.31%
EPS NQ rev (3m)12.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.65%
Revenue NQ rev (1m)-3.47%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.63%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.1
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA 43.07
EPS(TTM)-9.18
EYN/A
EPS(NY)-6.79
Fwd EYN/A
FCF(TTM)-5.16
FCFYN/A
OCF(TTM)-3.4
OCFYN/A
SpS35.25
BVpS-22.46
TBVpS-75.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -11.66%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM N/A
ROA(3y)-6.63%
ROA(5y)-6.68%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)0.99%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5Y-26.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA 39.94
Cap/Depr 73.7%
Cap/Sales 5%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.3
Quick Ratio 0.27
Altman-Z -0.15
F-Score3
WACC8.39%
ROIC/WACCN/A
Cap/Depr(3y)92.14%
Cap/Depr(5y)64.41%
Cap/Sales(3y)6.31%
Cap/Sales(5y)4.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-22.73%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-72.33%
EPS Next Y-80.95%
EPS Next 2Y-9.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)42.36%
Revenue growth 3Y198.3%
Revenue growth 5Y93.31%
Sales Q2Q%31.09%
Revenue Next Year28.09%
Revenue Next 2Y18.9%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-208.35%
EBIT growth 3YN/A
EBIT growth 5Y42.33%
EBIT Next Year40.6%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-64.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-83.03%
OCF growth 3YN/A
OCF growth 5YN/A