Bedrijfsoverzicht
BT Brands, Inc. is a specialized operator within the consumer cyclical sector, specifically focusing on the restaurants industry by owning and managing fast-food locations in the north central region of the United States. The company's core business model centers on the operation of Burger Time restaurants, which provide a diverse menu including various burgers, chicken sandwiches, pulled pork sandwiches, chicken tenders, chicken chunks, sides, and soft drinks. As a micro-cap entity, BT Brands, Inc. reports a market capitalization of $9.97M and generates annual revenue of $13.49M over the trailing twelve-month period, while employee count data is not publicly disclosed in available filings. These financial figures indicate that the company operates on a relatively small scale within the broader restaurant landscape, positioning it as a niche player with limited market penetration compared to larger national chains.
Financiële gezondheid
Over the trailing twelve months, the company reported total revenue of $13.49M, yet simultaneously recorded a net income loss of $687,839, creating a significant disparity that reveals a challenging cost structure where expenses substantially outweigh operating profits. Despite the net loss, the entity maintains a positive EBITDA of $256,888, suggesting that while accounting for interest and taxes impacts the bottom line, the core operational cash generation before those charges remains positive. However, the free cash flow stands at $-718,631, indicating that capital expenditures and working capital requirements have exceeded cash inflows, which limits the company's immediate financial flexibility for expansion or debt reduction. The company's profitability is further highlighted by a gross margin of 19.3%, an operating margin of -19.7%, and a profit margin of -5.1%, collectively showing that while the cost of goods sold is manageable, operational inefficiencies are eroding profits significantly. In terms of liquidity, BT Brands, Inc. holds $4.44M in cash against $3.66M in total debt, resulting in a debt-to-equity ratio of 57.02% which suggests a moderately leveraged balance sheet rather than a conservative one. The current ratio is reported at 4.84, a figure that indicates robust short-term liquidity as current assets are nearly five times greater than current liabilities. Finally, the return on equity is -10.3% and the return on assets is -2.2%, metrics that reveal management has not been effective in generating returns on the capital invested by shareholders or utilized in the asset base during the reporting period.
Waarderingsbeoordeling
Valuation metrics for BT Brands, Inc. show that both the trailing P/E ratio and the forward P/E ratio are listed as N/A, reflecting the fact that the company is currently unprofitable and therefore lacks the earnings base required for these standard multiples. The absence of a trailing or forward P/E implies that valuation cannot be anchored to earnings power, forcing investors to rely on alternative metrics to assess the company's worth relative to its book value. The price-to-book ratio is 1.55, indicating that the market values the company at a 55% premium over its net asset value, which may suggest optimism regarding future growth or asset revaluation potential. Additionally, the price-to-sales ratio is 0.74 and the EV/EBITDA stands at 35.77, suggesting that the market is willing to pay a significant multiple relative to sales and enterprise value adjusted earnings, a common practice for growth-oriented or turnaround micro-cap stocks. The stock has exhibited significant volatility over the last year, trading between a 52-week low of $1.00 and a 52-week high of $5.60. If the current price is assumed to be near the upper end of recent trading activity, the stock trades at a substantial discount relative to its 52-week high, whereas if near the bottom, it trades at a premium relative to its 52-week low, highlighting the wide trading range. The beta value is 0.66, which indicates that the stock price volatility is roughly 34% lower than the broader market, suggesting it behaves as a defensive or lower-volatility asset during market fluctuations despite its small market capitalization.
Growth & Income
Regarding growth dynamics, the company experienced a revenue decline of -17.4% year-over-year, while earnings growth is listed as N/A due to the unprofitable status of the firm. The contraction in revenue suggests a challenging operating environment or loss of market share, and without positive earnings growth to offset this, the company faces headwinds in scaling its operations or recovering profitability. As a non-dividend payer, BT Brands, Inc. reports a dividend yield of N/A and a payout ratio of 0.0%, meaning the company currently reinvests all available resources into maintaining operations rather than distributing income to shareholders. This retention strategy is typical for small-cap companies seeking to preserve cash reserves to navigate periods of negative free cash flow and rebuild profitability before considering shareholder returns. The overall growth and income profile presents a scenario of revenue contraction without earnings generation and no income distribution, characterizing the asset as a high-risk investment focused on operational turnaround rather than current income or consistent growth.