Noodles & Company Fundamental Analysis (NASDAQ: NDLS)
Noodles & Company (NASDAQ: NDLS) shows moderate financial fundamentals with a PE ratio of -3.80, profit margin of -4.71%, and ROE of 50.91%. The company generates $0.5B in annual revenue with weak year-over-year growth of 0.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 86.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NDLS's fundamental strength across five key dimensions:
Efficiency Score
WeakNDLS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNDLS trades at attractive valuation levels.
Growth Score
WeakNDLS faces weak or negative growth trends.
Financial Health Score
ModerateNDLS shows balanced financial health with some risks.
Profitability Score
ModerateNDLS maintains healthy but balanced margins.
Key Financial Metrics
Is NDLS Expensive or Cheap?
P/E Ratio
NDLS trades at -3.80 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NDLS's PEG of -0.07 indicates potential undervaluation.
Price to Book
The market values Noodles & Company at -1.77 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -12.60 times EBITDA. This is generally considered low.
How Well Does NDLS Make Money?
Net Profit Margin
For every $100 in sales, Noodles & Company keeps $-4.71 as profit after all expenses.
Operating Margin
Core operations generate 3.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $50.91 in profit for every $100 of shareholder equity.
ROA
Noodles & Company generates $-9.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Noodles & Company generates limited operating cash flow of $13.51M, signaling weaker underlying cash strength.
Free Cash Flow
Noodles & Company generates weak or negative free cash flow of $3.79M, restricting financial flexibility.
FCF Per Share
Each share generates $0.63 in free cash annually.
FCF Yield
NDLS converts 4.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-3.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
-1.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.18
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-4.75
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.51
vs 25 benchmark
ROA
Return on assets percentage
-0.10
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How NDLS Stacks Against Its Sector Peers
| Metric | NDLS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -3.80 | 26.29 | Better (Cheaper) |
| ROE | 50.91% | 966.00% | Weak |
| Net Margin | -4.71% | -4927.00% (disorted) | Weak |
| Debt/Equity | -4.75 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 0.29 | 2.32 | Weak Liquidity |
| ROA | -9.89% | 295.00% | Weak |
NDLS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Noodles & Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
19.01%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-73.18%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-24.46%
Industry Style: Cyclical, Growth, Discretionary
Declining