First Watch Restaurant secures Sharpe Ratio (or Efficiency) of -0.0851, which denotes the company had -0.0851% of return per unit of risk over the last 3 months. Macroaxis standpoint towards predicting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. First Watch Restaurant exposes twenty-eight different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to confirm First Watch Restaurant
mean deviation of 2.8, and Coefficient Of Variation of
(1,197) to check the risk estimate we provide.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include First Watch income statement, its balance sheet, and the statement of cash flows. Potential First Watch investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although First Watch investors may use each financial statement separately, they are all related. The changes in First Watch's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on First Watch's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of First Watch
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of First Watch performance into the future periods or doing a reasonable stock valuation. The intrinsic value of First Watch shares is the value that is considered the true value of the share. If
the intrinsic value of First is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares First Watch. Please read more on our
fundamental analysis page.
How effective is First Watch in utilizing its assets?
First Watch Restaurant reports assets on its Balance Sheet. It represents the amount of First resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, First Watch aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Hotels, Restaurants & Leisure space. To get a better handle on how balance sheet or income statements item affect First volatility, please check the breakdown of all its
fundamentals.
Are First Watch Earnings Expected to grow?
The
future earnings power of First Watch involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of First Watch factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. First Watch
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of First
expected earnings.
First Watch Gross Profit
First Watch Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing First Watch previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show First Watch Gross Profit growth over the last 10 years. Please check First Watch's
gross profit and other
fundamental indicators for more details.
A Deeper Perspective
Institutional investors typically avoid acquiring a high percentage of First Watch stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of First is distributed among investors.
Ownership Allocation
First Watch Restaurant retains a total of 59.05 Million outstanding shares. The majority of First Watch Restaurant
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in First Watch Restaurant to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in First Watch. Please pay attention to any change in the institutional holdings of First Watch Restaurant as this could imply that something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently
losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.
| Retail Investors15.57% | | Institutions83.26% |
| Retail Investors | 15.57 |
| Insiders | 1.17 |
| Institutions | 83.26 |
Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of First indicates not a very effective usage of assets in March.
| Assets Non Current1.1 B | Goodwill437.6 M |
| Current Assets | 50.89 Million | 3.14 |
| Assets Non Current | 1.13 Billion | 69.91 |
| Goodwill | 437.61 Million | 26.96 |
Will First dip impact its fundamentals?
First Watch latest skewness ascents over 0.16. First Watch Restaurant exhibits very low volatility with skewness of 0.16 and kurtosis of -0.31. However, we advise investors to further study First Watch Restaurant technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure First Watch's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact First Watch's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
First Watch Implied Volatility
First Watch's implied volatility exposes the market's sentiment of First Watch Restaurant stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if First Watch's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that First Watch stock will not fluctuate a lot when First Watch's options are near their expiration.
The Bottom Line
Although many of the other players in the restaurants industry are either recovering or due for a correction, First may not be as strong as the others in terms of longer-term growth potentials. To summarize, as of the 23rd of March 2022, our concluding 90 days buy-hold-sell recommendation on the firm is
Strong Hold. We believe First Watch is currently
undervalued with
above average probability of bankruptcy for the next two years.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of First Watch Restaurant. Please refer to our
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