This firm has accumulated 864.91
M in total debt with debt to equity ratio (D/E) of 2.78, implying the firm greatly relies on financing operations through barrowing. The company has a current ratio of 0.32, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. About
75.0% of the company shares are owned by institutional investors. The book value of Restaurant Group was at this time reported as 0.53. Restaurant Group Plc recorded a loss per share of
0.3. The entity next dividend is scheduled to be issued on the 7th of June 2018.
Restaurant Group financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Restaurant Group, including all of Restaurant Group's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Restaurant Group assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Restaurant Group debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
Watch out for price decline
Please consider monitoring Restaurant Group on a daily basis if you are holding a position in it. Restaurant Group is trading at a penny-stock level, and the possibility of delisting is much higher compared to other pink sheets. However, just because the pink sheet is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Restaurant Group stock to be traded above the $1 level to remain listed. If Restaurant Group pink sheet price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Restaurant Group's Liquidity
Restaurant Group
financial leverage refers to using borrowed capital as a funding source to finance Restaurant Group PLC ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Restaurant Group 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. Financial leverage can amplify the potential profits to Restaurant Group's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Restaurant Group's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Restaurant Group's total debt and its cash.
What is driving Restaurant Group Investor Appetite?
Restaurant Group Plc reported the revenue of 459.77
M. Net Loss for the year was (119.89
M) with loss before overhead, payroll, taxes, and interest of (20.7
M).
Analysis of Restaurant Group Plc
Latest Jensen Alpha is up to 0.08. Price may dip again.
As of the 14th of September 2021, Restaurant Group holds the
risk adjusted performance of 0.0843, and Coefficient Of Variation of 812.4. Compared to
fundamental indicators, the
technical analysis model allows you to check existing technical drivers of Restaurant Group, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to analyze and collect data for nineteen
technical drivers for Restaurant Group Plc, which can be compared to its competitors. Please check
Restaurant Group Plc information ratio,
value at risk, as well as the
relationship between the Value At Risk and
expected short fall to decide if Restaurant Group Plc is priced some-what accurately, providing market reflects its current price of 1.75 per share. Please also confirm Restaurant Group Plc
total risk alpha, which is currently at 0.0826 to check out the company can sustain itself at a future point.
The Bottom Line
Although many other companies within its industry are still a little expensive, even after the recent corrections, Restaurant Group may offer a potential longer-term growth to shareholders. To conclude, as of the 14th of September 2021, our primary 90 days 'Buy-vs-Sell' recommendation on the firm is
Cautious Hold. We believe Restaurant Group is currently
fairly valued with
below average chance 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 Restaurant Group PLC. Please refer to our
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