GEN RESTAURANT GROUP INC (GENK)
US36870C1045 - Common Stock
We assign a fundamental rating of 3 out of 10 to GENK. GENK was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. While GENK is still in line with the averages on profitability rating, there are concerns on its financial health. GENK is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GENK was profitable.
GENK had a positive operating cash flow in the past year.
GENK had positive earnings in 4 of the past 5 years.
Of the past 5 years GENK 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.34%, GENK is doing worse than 61.65% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.32%, GENK is in line with its industry, outperforming 58.65% of the companies in the same industry.
The Return On Invested Capital of GENK (3.18%) is worse than 61.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GENK is significantly above the industry average of 10.54%.
The 3 year average ROIC (19.89%) for GENK is well above the current ROIC(3.18%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.34% | ||
| ROE | 5.32% | ||
| ROIC | 3.18% |
ROA(3y)34.91%
ROA(5y)19.43%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.89%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 0.39%, GENK is doing worse than 62.41% of the companies in the same industry.
With a Operating Margin value of 3.92%, GENK is not doing good in the industry: 65.41% of the companies in the same industry are doing better.
With an excellent Gross Margin value of 67.40%, GENK belongs to the best of the industry, outperforming 81.20% of the companies in the same industry.
GENK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.92% | ||
| PM (TTM) | 0.39% | ||
| GM | 67.4% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.47%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GENK is creating value.
The number of shares outstanding for GENK has been increased compared to 1 year ago.
GENK has a better debt/assets ratio than last year.
2.2 Solvency
GENK has an Altman-Z score of 1.68. This is a bad value and indicates that GENK is not financially healthy and even has some risk of bankruptcy.
GENK has a Altman-Z score of 1.68. This is comparable to the rest of the industry: GENK outperforms 51.13% of its industry peers.
GENK has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
GENK has a Debt to Equity ratio of 0.38. This is in the better half of the industry: GENK outperforms 72.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.68 |
ROIC/WACC0.36
WACC8.81%
2.3 Liquidity
GENK has a Current Ratio of 0.91. This is a bad value and indicates that GENK is not financially healthy enough and could expect problems in meeting its short term obligations.
GENK's Current ratio of 0.91 is in line compared to the rest of the industry. GENK outperforms 51.88% of its industry peers.
GENK has a Quick Ratio of 0.91. This is a bad value and indicates that GENK is not financially healthy enough and could expect problems in meeting its short term obligations.
GENK has a Quick ratio of 0.87. This is comparable to the rest of the industry: GENK outperforms 50.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
GENK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.50%.
GENK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.50%.
GENK shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 42.39% yearly.
EPS 1Y (TTM)-45.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-87.5%
Revenue 1Y (TTM)12.5%
Revenue growth 3Y42.39%
Revenue growth 5YN/A
Sales Q2Q%7.77%
3.2 Future
Based on estimates for the next years, GENK will show a very negative growth in Earnings Per Share. The EPS will decrease by -41.68% on average per year.
GENK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.30% yearly.
EPS Next Y-46.94%
EPS Next 2Y-41.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.27%
Revenue Next 2Y17.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
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
With a Price/Earnings ratio of 43.94, GENK can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as GENK.
GENK is valuated expensively when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 87.89, which means the current valuation is very expensive for GENK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GENK indicates a slightly more expensive valuation: GENK is more expensive than 63.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.99, GENK is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.94 | ||
| Fwd PE | 87.89 |
4.2 Price Multiples
GENK's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.25 |
4.3 Compensation for Growth
GENK's earnings are expected to decrease with -41.68% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-41.68%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for GENK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GEN RESTAURANT GROUP INC
NASDAQ:GENK (12/24/2024, 8:16:36 PM)
7.47
-0.12 (-1.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners57.96%
Inst Owner Change-12.78%
Ins Owners5.68%
Ins Owner Change0%
Market Cap245.02M
Analysts82.22
Price Target13.43 (79.79%)
Short Float %2.66%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)183.77%
Min EPS beat(2)120.56%
Max EPS beat(2)246.99%
EPS beat(4)3
Avg EPS beat(4)303.32%
Min EPS beat(4)-132.68%
Max EPS beat(4)978.43%
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)1
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-3.4%
Max Revenue beat(2)2.28%
Revenue beat(4)3
Avg Revenue beat(4)0.86%
Min Revenue beat(4)-3.4%
Max Revenue beat(4)3.56%
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)0%
PT rev (3m)0%
EPS NQ rev (1m)9.99%
EPS NQ rev (3m)-79.96%
EPS NY rev (1m)13.04%
EPS NY rev (3m)13.04%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-2.2%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.94 | ||
| Fwd PE | 87.89 | ||
| P/S | 1.23 | ||
| P/FCF | N/A | ||
| P/OCF | 12.77 | ||
| P/B | 16.85 | ||
| P/tB | 48.59 | ||
| EV/EBITDA | 16.25 |
EPS(TTM)0.17
EY2.28%
EPS(NY)0.08
Fwd EY1.14%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)0.59
OCFY7.83%
SpS6.06
BVpS0.44
TBVpS0.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.34% | ||
| ROE | 5.32% | ||
| ROCE | 4.03% | ||
| ROIC | 3.18% | ||
| ROICexc | 3.59% | ||
| ROICexgc | 3.8% | ||
| OM | 3.92% | ||
| PM (TTM) | 0.39% | ||
| GM | 67.4% | ||
| FCFM | N/A |
ROA(3y)34.91%
ROA(5y)19.43%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.89%
ROIC(5y)N/A
ROICexc(3y)27.88%
ROICexc(5y)N/A
ROICexgc(3y)27.88%
ROICexgc(5y)N/A
ROCE(3y)25.47%
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 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.47%
GM growth 5YN/A
F-Score4
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 381.58% | ||
| Cap/Sales | 12.26% | ||
| Interest Coverage | 92.85 | ||
| Cash Conversion | 135.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.68 |
F-Score4
WACC8.81%
ROIC/WACC0.36
Cap/Depr(3y)188.84%
Cap/Depr(5y)139.32%
Cap/Sales(3y)5.11%
Cap/Sales(5y)4.06%
Profit Quality(3y)95.09%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-45.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-87.5%
EPS Next Y-46.94%
EPS Next 2Y-41.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.5%
Revenue growth 3Y42.39%
Revenue growth 5YN/A
Sales Q2Q%7.77%
Revenue Next Year13.27%
Revenue Next 2Y17.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-48.01%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year62.23%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-67.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.28%
OCF growth 3YN/A
OCF growth 5YN/A