Ignite Restaurant Group Inc

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IRG : NASDAQ : Services
$0.2208 | %
Today's Range: 0.2197 - 0.2611
Avg. Daily Volume: 95800.0
12/02/16 - 3:58 PM ET

Financial Analysis


IGNITE RESTAURANT GROUP INC's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. IGNITE RESTAURANT GROUP INC has very weak liquidity. Currently, the Quick Ratio is 0.07 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 173.03% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)119.94133.36
EBITDA ($mil)-5.457.37
EBIT ($mil)-11.38-0.39
Net Income ($mil)-15.16-3.9


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)0.7351.64
Total Assets ($mil)159.28256.18
Total Debt ($mil)113.31161.83
Equity ($mil)-19.6326.88


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin12.8113.98
EBITDA Margin-4.545.52
Operating Margin-9.49-0.3
Sales Turnover2.91.94
Return on Assets-29.85-29.1
Return on Equity0.0-146.0
Debt Q3 FY16 Q3 FY15
Current Ratio0.271.49
Debt/Capital1.210.86
Interest Expense3.013.84
Interest Coverage-3.78-0.1


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)26.2726.13
Div / share0.00.0
EPS-0.59-0.17
Book value / share-0.751.03
Institutional Own % n/a n/a
Avg Daily Volume85131.047411.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
IRG NM Peers 31.28   IRG 1.15 Peers 15.46

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

IRG's P/E is negative making this valuation measure meaningless.

 

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.

IRG is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
IRG NM Peers 31.60   IRG NA Peers 1.41

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

IRG's ratio is negative making this valuation measure meaningless.

 

Neutral. 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
IRG NM Peers 7.55   IRG -18.42 Peers 69.23

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

IRG's P/B is negative making this valuation measure meaningless.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, IRG is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
IRG 0.02 Peers 2.95   IRG -7.00 Peers 4.78

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.

IRG is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

IRG significantly trails its peers on the basis of sales growth

 

 

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