JACK IN THE BOX INC (JACK) Stock Fundamental Analysis
NASDAQ:JACK - Nasdaq - US4663671091 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to JACK. JACK was compared to 136 industry peers in the Hotels, Restaurants & Leisure industry. While JACK is still in line with the averages on profitability rating, there are concerns on its financial health. JACK has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally JACK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
JACK had positive earnings in the past year.
Of the past 5 years JACK 4 years were profitable.
In the past 5 years JACK always reported a positive cash flow from operatings.
1.2 Ratios
JACK has a Return On Assets of -1.01%. This is in the lower half of the industry: JACK underperforms 66.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.38%, JACK is in the better half of the industry, outperforming 66.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for JACK is significantly below the industry average of 15.69%.
The last Return On Invested Capital (8.38%) for JACK is above the 3 year average (7.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.01% | ||
| ROE | N/A | ||
| ROIC | 8.38% |
ROA(3y)2.33%
ROA(5y)4.23%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.62%
ROIC(5y)9.25%
1.3 Margins
With a decent Operating Margin value of 16.98%, JACK is doing good in the industry, outperforming 71.32% of the companies in the same industry.
JACK's Operating Margin has declined in the last couple of years.
JACK has a Gross Margin of 54.85%. This is in the better half of the industry: JACK outperforms 67.65% of its industry peers.
JACK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.98% | ||
| PM (TTM) | N/A | ||
| GM | 54.85% |
OM growth 3Y-11.29%
OM growth 5Y-5.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.21%
GM growth 5Y-1.6%
2. Health
2.1 Basic Checks
JACK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for JACK has been reduced compared to 1 year ago.
Compared to 5 years ago, JACK has less shares outstanding
JACK has a worse debt/assets ratio than last year.
2.2 Solvency
JACK has an Altman-Z score of 1.89. This is not the best score and indicates that JACK is in the grey zone with still only limited risk for bankruptcy at the moment.
JACK's Altman-Z score of 1.89 is in line compared to the rest of the industry. JACK outperforms 59.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.89 |
ROIC/WACC1.44
WACC5.83%
2.3 Liquidity
A Current Ratio of 0.50 indicates that JACK may have some problems paying its short term obligations.
JACK has a Current ratio of 0.50. This is in the lower half of the industry: JACK underperforms 74.26% of its industry peers.
JACK has a Quick Ratio of 0.50. This is a bad value and indicates that JACK is not financially healthy enough and could expect problems in meeting its short term obligations.
JACK's Quick ratio of 0.49 is on the low side compared to the rest of the industry. JACK is outperformed by 71.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.86% over the past year.
Measured over the past 5 years, JACK shows a small growth in Earnings Per Share. The EPS has been growing by 7.36% on average per year.
Looking at the last year, JACK shows a decrease in Revenue. The Revenue has decreased by -7.15% in the last year.
The Revenue has been growing by 10.59% on average over the past years. This is quite good.
EPS 1Y (TTM)3.86%
EPS 3Y-4.63%
EPS 5Y7.36%
EPS Q2Q%-1.54%
Revenue 1Y (TTM)-7.15%
Revenue growth 3Y11.17%
Revenue growth 5Y10.59%
Sales Q2Q%-3.7%
3.2 Future
The Earnings Per Share is expected to grow by 3.58% on average over the next years.
JACK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.29% yearly.
EPS Next Y-13.15%
EPS Next 2Y-3.72%
EPS Next 3Y0.32%
EPS Next 5Y3.58%
Revenue Next Year-3.35%
Revenue Next 2Y-0.75%
Revenue Next 3Y-0.02%
Revenue Next 5Y4.29%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 4.11, the valuation of JACK can be described as very cheap.
JACK's Price/Earnings ratio is rather cheap when compared to the industry. JACK is cheaper than 98.53% of the companies in the same industry.
JACK is valuated cheaply when we compare the Price/Earnings ratio to 28.64, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.41, the valuation of JACK can be described as very cheap.
99.26% of the companies in the same industry are more expensive than JACK, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.44. JACK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.11 | ||
| Fwd PE | 4.41 |
4.2 Price Multiples
JACK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JACK is cheaper than 86.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.18 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y-3.72%
EPS Next 3Y0.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.58%, JACK is a good candidate for dividend investing.
The stock price of JACK dropped by -35.84% 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 3.92, JACK pays a better dividend. On top of this JACK pays more dividend than 95.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, JACK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.58% |
5.2 History
The dividend of JACK has a limited annual growth rate of 1.40%.
JACK has paid a dividend for at least 10 years, which is a reliable track record.
JACK has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.4%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
The earnings of JACK are negative and hence is the payout ratio. JACK will probably not be able to sustain this dividend level.
The dividend of JACK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-151.06%
EPS Next 2Y-3.72%
EPS Next 3Y0.32%
25.42
-0.02 (-0.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners111.89%
Inst Owner Change-0.17%
Ins Owners1.52%
Ins Owner Change13.92%
Market Cap479.42M
Analysts70.71
Price Target45.69 (79.74%)
Short Float %17.22%
Short Ratio4.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.58% |
Yearly Dividend1.76
Dividend Growth(5Y)1.4%
DP-151.06%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.62%
Min EPS beat(2)3.82%
Max EPS beat(2)11.42%
EPS beat(4)4
Avg EPS beat(4)5.89%
Min EPS beat(4)0.92%
Max EPS beat(4)11.42%
EPS beat(8)6
Avg EPS beat(8)4.73%
EPS beat(12)7
Avg EPS beat(12)2.02%
EPS beat(16)10
Avg EPS beat(16)3.32%
Revenue beat(2)0
Avg Revenue beat(2)-3.04%
Min Revenue beat(2)-3.94%
Max Revenue beat(2)-2.15%
Revenue beat(4)0
Avg Revenue beat(4)-2.85%
Min Revenue beat(4)-3.94%
Max Revenue beat(4)-2.15%
Revenue beat(8)1
Avg Revenue beat(8)-1.83%
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)-1.5%
PT rev (3m)-15.74%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-11.42%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-0.68%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.11 | ||
| Fwd PE | 4.41 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.18 |
EPS(TTM)6.19
EY24.35%
EPS(NY)5.77
Fwd EY22.68%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS88.83
BVpS-43.86
TBVpS-67.99
PEG (NY)N/A
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.01% | ||
| ROE | N/A | ||
| ROCE | 12.12% | ||
| ROIC | 8.38% | ||
| ROICexc | 8.65% | ||
| ROICexgc | 10.82% | ||
| OM | 16.98% | ||
| PM (TTM) | N/A | ||
| GM | 54.85% | ||
| FCFM | N/A |
ROA(3y)2.33%
ROA(5y)4.23%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.62%
ROIC(5y)9.25%
ROICexc(3y)7.94%
ROICexc(5y)9.83%
ROICexgc(3y)10.65%
ROICexgc(5y)11.65%
ROCE(3y)11.03%
ROCE(5y)13.38%
ROICexcg growth 3Y-11.48%
ROICexcg growth 5Y-15.2%
ROICexc growth 3Y-16.83%
ROICexc growth 5Y-17.72%
OM growth 3Y-11.29%
OM growth 5Y-5.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.21%
GM growth 5Y-1.6%
F-ScoreN/A
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.92 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 1.89 |
F-ScoreN/A
WACC5.83%
ROIC/WACC1.44
Cap/Depr(3y)132.15%
Cap/Depr(5y)104.31%
Cap/Sales(3y)4.98%
Cap/Sales(5y)4.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.86%
EPS 3Y-4.63%
EPS 5Y7.36%
EPS Q2Q%-1.54%
EPS Next Y-13.15%
EPS Next 2Y-3.72%
EPS Next 3Y0.32%
EPS Next 5Y3.58%
Revenue 1Y (TTM)-7.15%
Revenue growth 3Y11.17%
Revenue growth 5Y10.59%
Sales Q2Q%-3.7%
Revenue Next Year-3.35%
Revenue Next 2Y-0.75%
Revenue Next 3Y-0.02%
Revenue Next 5Y4.29%
EBIT growth 1Y-1.22%
EBIT growth 3Y-1.39%
EBIT growth 5Y4.92%
EBIT Next Year18.14%
EBIT Next 3Y8.06%
EBIT Next 5Y7.35%
FCF growth 1Y-133.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-67.99%
OCF growth 3Y-30.05%
OCF growth 5Y-16.39%