Restaurant OTC Stock Story

RSTGF -  USA Stock  

USD 1.75  0.00  0.00%

Restaurant Group Plc is scheduled to announce its earnings tomorrow. While some of us are becoming more enthusiastic about restaurant group plc space, let's digest Restaurant Group Plc in greater detail to make a better estimate of its debt utilization. Here we also measure the ability of Restaurant Group to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.
Published over a month ago
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Does Restaurant Group (OTC:RSTGF) has enough cash to last in October?
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.

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. Please check the breakdown between Restaurant Group's total debt and its cash.

How Restaurant utilizes its cash?

To perform a cash flow analysis of Restaurant Group, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Restaurant Group is receiving and how much cash it distributes out in a given period. The Restaurant Group cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

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.

Editorial Staff

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 Terms of Use for any information regarding our disclosure principles.

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