Good Times Story

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GTIM -- USA Stock  

USD 2.78  0.13  4.47%

As some conservative investors are getting more into consumer cyclical space, Good Times Restaurants could be a your radar. We will evaluate if Good Times shares are reasonably priced going into January. Here I will also summarize some basic indicators that the firm investors should consider in January.
Published over a month ago
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What are the odds of Good Times pulling away in January?
The company is undervalued at 2.86 per share with modest projections ahead. Good Times holds a performance score of 16 on a scale of zero to a hundred. The company retains a Market Volatility (i.e. Beta) of 0.0318, which attests to not very significant fluctuations relative to the market. Let's try to break down what Good Times's beta means in this case. As returns on the market increase, Good Times returns are expected to increase less than the market. However, during the bear market, the loss on holding Good Times will be expected to be smaller as well. Although it is vital to follow Good Times Restaurants current price history, it is good to be conservative about what you can do with the information regarding equity current price movements. Our philosophy towards determining future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if Good Times Restaurants expected return of 1.18 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use Good Times Restaurants standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected short fall to analyze future returns on Good Times Restaurants.

How important is Good Times's Liquidity

Good Times financial leverage refers to using borrowed capital as a funding source to finance Good Times Restaurants ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Good Times financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Good Times's total debt and its cash.

How Good Times utilizes its cash?

To perform a cash flow analysis of Good Times, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Good Times is receiving and how much cash it distributes out in a given period. The Good Times cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Good Times Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 3.56 Million

Breaking down Good Times Indicators

The market capitalization of Good Times is $34.6 Million. Good Times secures significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Note, that even with negative profits, if the true value of the firm is larger than the current market value, you may still be able to generate positive returns on investment in this company.

Ownership Breakdown

Retail Investors
64.57%
Insiders
25.94%
Institutions
9.49%
Retail Investors64.57
Insiders25.94
Institutions9.49

Chances of Good Times to slide back

Good Times new risk adjusted performance upsurges over 0.21. Good Times Restaurants shows above-average downside volatility for the selected time horizon. We advise investors to inspect Good Times Restaurants further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Good Times future alpha.

The Bottom Line

While some companies within the restaurants industry are still a little expensive, even after the recent corrections, Good Times may offer a potential longer-term growth to stakeholders. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither purchase nor exit any shares of Good Times at this time. The Good Times Restaurants risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Good Times.

About Contributor

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 Raphi Shpitalnik do not own shares of Good Times Restaurants. Please refer to our Terms of Use for any information regarding our disclosure principles.

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