Potbelly Corporation
Find Ratings ReportsPOTBELLY CORP's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. POTBELLY CORP has weak liquidity. Currently, the Quick Ratio is 0.59 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 228.18% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 125.75 | 120.15 |
EBITDA ($mil) | 7.46 | 6.35 |
EBIT ($mil) | 4.23 | 3.55 |
Net Income ($mil) | 2.74 | 2.66 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 33.79 | 15.62 |
Total Assets ($mil) | 252.46 | 245.17 |
Total Debt ($mil) | 186.99 | 196.91 |
Equity ($mil) | 14.69 | 4.48 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 28.3 | 26.07 |
EBITDA Margin | 5.93 | 5.28 |
Operating Margin | 3.36 | 2.95 |
Sales Turnover | 1.95 | 1.84 |
Return on Assets | 2.02 | 1.77 |
Return on Equity | 34.84 | 97.05 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.75 | 0.44 |
Debt/Capital | 0.93 | 0.98 |
Interest Expense | 0.75 | 0.31 |
Interest Coverage | 5.63 | 11.36 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 29.36 | 28.82 |
Div / share | 0.0 | 0.0 |
EPS | 0.09 | 0.09 |
Book value / share | 0.5 | 0.16 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 268053.0 | 123727.0 |
BUY. POTBELLY CORP's P/E ratio indicates a significant premium compared to an average of 44.29 for the Food Services and Drinking Places subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 22.38 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 13.92. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, POTBELLY CORP proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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PBPB 70.00 | Peers 44.29 | PBPB 16.88 | Peers 24.08 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. PBPB is trading at a significant premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. PBPB is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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PBPB 37.33 | Peers 28.31 | PBPB 1.98 | Peers 3.38 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. PBPB is trading at a significant premium to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. PBPB trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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PBPB 22.38 | Peers 13.92 | PBPB 14.28 | Peers 40.00 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. PBPB is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, PBPB is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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PBPB 0.67 | Peers 5.79 | PBPB 8.72 | Peers 10.97 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. PBPB is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. PBPB trails its peers on the basis of sales growth. |
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