Good Times Story

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GTIM -- USA Stock  

USD 2.96  0.10  3.27%

Even with relatively unfluctuating basic indicators, Good Times may actually be approaching a critical reversion point that can send shares even higher in January 2021. Good Times Restaurants chance of financial distress is under 30 percent. Will the firm stakeholders continue to take up in January?
Published over three weeks ago
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Does Good Times (NASDAQ:GTIM) have steady basic indicators based on the new hike?
Good Times is very risky given 1 month investment horizon. Good Times Restaurants holds Efficiency (Sharpe) Ratio of 0.24, which attests that the entity had 0.24% of return per unit of risk over the last month. Our standpoint towards determining the risk of a stock is to use both market data as well as company specific technical data. We were able to analyze twenty-one different technical indicators, which can help you to evaluate if expected returns of 1.16% are justified by taking the suggested risk. Use Good Times Restaurants Downside Deviation of 4.38, risk adjusted performance of 0.253, and Market Risk Adjusted Performance of 0.8362 to evaluate company specific risk that cannot be diversified away.
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 Good Times income statement, its balance sheet, and the statement of cash flows. Potential Good Times investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Good Times investors may use each financial statement separately, they are all related. The changes in Good Times's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Good Times'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 Good Times fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Good Times performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Good Times shares is the value that is considered the true value of the share. If the intrinsic value Good Times 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 Good Times. Please read more on our fundamental analysis page.

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

Good Times Gross Profit

Good Times Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Good Times 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 Good Times Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Breaking down Good Times Indicators

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Good Times is not uncomon. Many companies such as Good Times have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Good Times is distributed among investors.

Ownership Allocation

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.

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

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Good Times has an asset utilization ratio of 234.36 percent. This denotes that the company is making $2.34 for each dollar of assets. An increasing asset utilization means that Good Times Restaurants is more efficient with each dollar of assets it utilizes for everyday operations.

Assets Non Current
63 M
Current Assets14.85 Million16.03
Assets Non Current63 Million67.98
Goodwill14.82 Million15.99

Our perspective of the new Good Times hike

Downside variance is down to 19.17. It may denote a possible volatility pull down. 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 Current Takeaway on Good Times Investment

While many other companies under the restaurants industry are still a bit expensive, Good Times may offer a potential longer-term growth to stakeholders. To conclude, as of the 27th of December 2020, we believe that Good Times is currently undervalued with below average odds of distress in the next two years. Our overall 30 days buy-hold-sell advice on the company is Buy.

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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