Rave Restaurant Group, Inc.Find Ratings Reports
RAVE RESTAURANT GROUP INC's gross profit margin for the second quarter of its fiscal year 2021 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. RAVE RESTAURANT GROUP INC is extremely liquid. Currently, the Quick Ratio is 3.75 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 7.52% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q2 FY21||Q2 FY20|
|Net Sales ($mil)||2.13||2.83|
|Net Income ($mil)||0.1||0.01|
|Balance Sheet||Q2 FY21||Q2 FY20|
|Cash & Equiv. ($mil)||6.53||1.97|
|Total Assets ($mil)||12.78||12.88|
|Total Debt ($mil)||6.02||5.17|
|Profitability||Q2 FY21||Q2 FY20|
|Gross Profit Margin||68.0||66.33|
|Return on Assets||-33.69||-6.51|
|Return on Equity||-99.86||-17.99|
|Debt||Q2 FY21||Q2 FY20|
|Share Data||Q2 FY21||Q2 FY20|
|Shares outstanding (mil)||18.01||15.13|
|Div / share||0.0||0.0|
|Book value / share||0.24||0.31|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1303724.0||1084716.0|
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 5.76 indicates a premium versus the S&P 500 average of 4.43 and a significant discount versus the subsector average of 19.04. The price-to-sales ratio is below the S&P 500 average and is well below the subsector average, indicating a discount. After reviewing these and other key valuation criteria, RAVE RESTAURANT GROUP INC proves to trade at a discount to investment alternatives.
|RAVE NM||Peers 371.15||RAVE NM||Peers 271.93|
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.
RAVE's P/E is negative making this valuation measure meaningless.
Neutral. 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.
RAVE's P/CF is negative making the measure meaningless.
|RAVE NA||Peers 94.41||RAVE NA||Peers 1.87|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.
Ratio not available.
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.
|RAVE 5.76||Peers 19.04||RAVE -314.28||Peers -292.32|
Discount. 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.
RAVE is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, RAVE is expected to significantly trail its peers on the basis of its earnings growth rate.
|RAVE 2.98||Peers 11.76||RAVE -29.45||Peers -31.39|
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.
RAVE 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.
RAVE significantly trails its peers on the basis of sales growth.