Biglari Holdings Inc. Fundamental Analysis (NYSE: BH-A)
Biglari Holdings Inc. (NYSE: BH-A) shows moderate financial fundamentals with a PE ratio of -87.37, profit margin of -5.61%, and ROE of -4.30%. The company generates $1.0B in annual revenue with moderate year-over-year growth of 9.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BH-A's fundamental strength across five key dimensions:
Efficiency Score
WeakBH-A struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBH-A trades at attractive valuation levels.
Growth Score
ModerateBH-A shows steady but slowing expansion.
Financial Health Score
ExcellentBH-A maintains a strong and stable balance sheet.
Profitability Score
WeakBH-A struggles to sustain strong margins.
Key Financial Metrics
Is BH-A Expensive or Cheap?
P/E Ratio
BH-A trades at -87.37 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BH-A's PEG of 0.73 indicates potential undervaluation.
Price to Book
The market values Biglari Holdings Inc. at 0.15 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 33.28 times EBITDA. This signals the market has high growth expectations.
How Well Does BH-A Make Money?
Net Profit Margin
For every $100 in sales, Biglari Holdings Inc. keeps $-5.61 as profit after all expenses.
Operating Margin
Core operations generate 8.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-4.30 in profit for every $100 of shareholder equity.
ROA
Biglari Holdings Inc. generates $-2.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Biglari Holdings Inc. produces operating cash flow of $137.38M, showing steady but balanced cash generation.
Free Cash Flow
Biglari Holdings Inc. produces free cash flow of $60.08M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $94.34 in free cash annually.
FCF Yield
BH-A converts 2.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-87.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.04
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How BH-A Stacks Against Its Sector Peers
| Metric | BH-A Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -87.37 | 24.94 | Better (Cheaper) |
| ROE | -4.30% | 965.00% | Weak |
| Net Margin | -5.61% | -2081.00% (disorted) | Weak |
| Debt/Equity | 0.45 | 0.71 | Strong (Low Leverage) |
| Current Ratio | 3.41 | 2.36 | Strong Liquidity |
| ROA | -2.18% | 364.00% | Weak |
BH-A outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Biglari Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-49.30%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
45.11%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-49.39%
Industry Style: Cyclical, Growth, Discretionary
Declining