Jack in the Box Inc. Fundamental Analysis (NASDAQ: JACK)
Jack in the Box Inc. (NASDAQ: JACK) shows weak financial fundamentals with a PE ratio of 9.63, profit margin of 2.84%, and ROE of -3.65%. The company generates $1.2B in annual revenue with weak year-over-year growth of -6.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze JACK's fundamental strength across five key dimensions:
Efficiency Score
WeakJACK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentJACK trades at attractive valuation levels.
Growth Score
WeakJACK faces weak or negative growth trends.
Financial Health Score
ModerateJACK shows balanced financial health with some risks.
Profitability Score
WeakJACK struggles to sustain strong margins.
Key Financial Metrics
Is JACK Expensive or Cheap?
P/E Ratio
JACK trades at 9.63 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, JACK's PEG of -0.96 indicates potential undervaluation.
Price to Book
The market values Jack in the Box Inc. at -0.36 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -10.33 times EBITDA. This is generally considered low.
How Well Does JACK Make Money?
Net Profit Margin
For every $100 in sales, Jack in the Box Inc. keeps $2.84 as profit after all expenses.
Operating Margin
Core operations generate 14.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-3.65 in profit for every $100 of shareholder equity.
ROA
Jack in the Box Inc. generates $1.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Jack in the Box Inc. generates limited operating cash flow of $73.25M, signaling weaker underlying cash strength.
Free Cash Flow
Jack in the Box Inc. generates weak or negative free cash flow of $12.04M, restricting financial flexibility.
FCF Per Share
Each share generates $0.63 in free cash annually.
FCF Yield
JACK converts 3.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.96
vs 25 benchmark
P/B Ratio
Price to book value ratio
-0.36
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.75
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.58
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
0.11
vs 25 benchmark
How JACK Stacks Against Its Sector Peers
| Metric | JACK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.63 | 26.74 | Better (Cheaper) |
| ROE | -3.65% | 965.00% | Weak |
| Net Margin | 2.84% | -4914.00% (disorted) | Weak |
| Debt/Equity | -2.75 | 0.61 | Strong (Low Leverage) |
| Current Ratio | 0.58 | 2.31 | Weak Liquidity |
| ROA | 1.77% | 295.00% | Weak |
JACK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Jack in the Box Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
74.00%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-209.08%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
37.22%
Industry Style: Cyclical, Growth, Discretionary
High Growth