The ONE Group Hospitality, Inc. Fundamental Analysis (NASDAQ: STKS)
The ONE Group Hospitality, Inc. Fundamental Analysis (NASDAQ: STKS)
The ONE Group Hospitality, Inc. (NASDAQ: STKS) shows moderate financial fundamentals with a PE ratio of -0.56, profit margin of -2.68%, and ROE of -36.29%. The company generates $0.8B in annual revenue with strong year-over-year growth of 19.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze STKS's fundamental strength across five key dimensions:
Efficiency Score
WeakSTKS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSTKS trades at attractive valuation levels.
Growth Score
ModerateSTKS shows steady but slowing expansion.
Financial Health Score
ModerateSTKS shows balanced financial health with some risks.
Profitability Score
WeakSTKS struggles to sustain strong margins.
Key Financial Metrics
Is STKS Expensive or Cheap?
P/E Ratio
STKS trades at -0.56 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, STKS's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values The ONE Group Hospitality, Inc. at -0.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -8.45 times EBITDA. This is generally considered low.
How Well Does STKS Make Money?
Net Profit Margin
For every $100 in sales, The ONE Group Hospitality, Inc. keeps $-2.68 as profit after all expenses.
Operating Margin
Core operations generate 5.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-36.29 in profit for every $100 of shareholder equity.
ROA
The ONE Group Hospitality, Inc. generates $-2.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The ONE Group Hospitality, Inc. generates limited operating cash flow of $52.11M, signaling weaker underlying cash strength.
Free Cash Flow
The ONE Group Hospitality, Inc. generates weak or negative free cash flow of $6.49M, restricting financial flexibility.
FCF Per Share
Each share generates $0.20 in free cash annually.
FCF Yield
STKS converts 21.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-0.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
-0.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-5.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.36
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How STKS Stacks Against Its Sector Peers
| Metric | STKS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -0.56 | 24.94 | Better (Cheaper) |
| ROE | -36.29% | 965.00% | Weak |
| Net Margin | -2.68% | -2081.00% (disorted) | Weak |
| Debt/Equity | -5.61 | 0.71 | Strong (Low Leverage) |
| Current Ratio | 0.32 | 2.36 | Weak Liquidity |
| ROA | -2.44% | 364.00% | Weak |
STKS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The ONE Group Hospitality, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
429.11%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-570.41%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
6455.58%
Industry Style: Cyclical, Growth, Discretionary
High Growth