Good Times Restaurants Inc. (GTIM) Stock Analysis
Good Times Restaurants Inc. (GTIM) Stock Analysis
Overall Grade: F (Concerning)
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Good Times Restaurants Inc. faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | 3.3% | Below expectations |
| FCF Margin | 0.7% | Cash flow pressure |
| Debt/Equity | 0.1x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is Good Times Restaurants Inc.'s Profitability and ROIC?
Good Times Restaurants Inc.'s return on invested capital of 3.3% is below the typical cost of capital.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 3.3% | Red flag | Below cost of capital |
| Return on Equity (ROE) | 3.2% | Warning | Moderate equity returns |
| Operating Margin | 0.2% | Warning | Moderate operational efficiency |
How Strong is Good Times Restaurants Inc.'s Cash Flow Quality?
Good Times Restaurants Inc. generated $1.7M in free cash flow over the trailing twelve months, representing a 0.7% margin. Cash earnings quality is strong, with operating cash flow exceeding net income by 3.4x.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | 0.7% | Warning | Thin cash margins |
| Free Cash Flow (TTM) | $1.7M | Good | Positive cash generation |
| OCF/Net Income | 3.4x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is Good Times Restaurants Inc.'s Financial Health?
Good Times Restaurants Inc. maintains a net cash position of $1.5M, providing significant financial flexibility.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.1x | Excellent | Conservative capital structure |
| Net Cash Position | $1.5M | Excellent | Net cash positive |
Is Good Times Restaurants Inc. Stock Overvalued or Undervalued?
Good Times Restaurants Inc. trades at a P/E of 12.1x, representing a premium to the sector median of N/A. Free cash flow yield of 13.4% offers attractive cash returns.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | 12.1x | Adequate | Reasonable valuation |
| EV/Sales | 0.1x | Excellent | Attractive revenue multiple |
| FCF Yield | 13.4% | Excellent | Attractive cash return |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 3.3% | Bottom 50% | 0.3x below |
| Free Cash Flow Margin | 0.7% | Bottom 50% | 0.2x below |
| Operating Margin | 0.2% | Bottom 10% | 0.0x below |
| Return on Equity (ROE) | 3.2% | Bottom 50% | 0.3x below |
| P/E Ratio | 12.1x | N/A | - |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: 3.3% (Red flag - Bottom 50% of sector (median: 9.8%))
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: 0.7% (Warning - Bottom 50% of sector (median: 3.2%))
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 5.5% (Excellent)
P/E Ratio (Price-to-Earnings)
Stock price divided by earnings per share. Lower P/E may indicate undervaluation, while higher P/E suggests growth expectations.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 15x | Attractively valued, potential opportunity |
| Good | 15x - 25x | Fair value for quality company |
| Adequate | 25x - 35x | Growth premium, justify with earnings growth |
| Warning | 35x - 50x | High expectations priced in |
| Red flag | > 50x or negative | Speculative valuation or losses |
Current: 12.1x (Adequate)
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: 13.4% (Excellent)
Frequently Asked Questions
Q: What is Good Times Restaurants Inc.'s Return on Invested Capital (ROIC)?
Good Times Restaurants Inc. (GTIM) has a trailing twelve-month Return on Invested Capital (ROIC) of 3.3%. This compares below the sector median of 9.8%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Good Times Restaurants Inc.'s Free Cash Flow Margin?
Good Times Restaurants Inc. (GTIM) has a free cash flow margin of 0.7%, generating $1.7 million in free cash flow over the trailing twelve months. A thin FCF margin may indicate heavy reinvestment or operational challenges.
Q: Is Good Times Restaurants Inc. stock overvalued or undervalued?
Good Times Restaurants Inc. (GTIM) trades at a P/E ratio of 12.1x, which is above the sector median of N/A. The EV/Sales multiple is 0.1x. Free cash flow yield is 13.4%, which represents an attractive cash return to investors.
Q: What is Good Times Restaurants Inc.'s revenue and earnings growth?
Good Times Restaurants Inc. (GTIM) grew revenue by 68.4% year-over-year. Earnings per share decreased by 54.5% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: Is Good Times Restaurants Inc. buying back stock?
Good Times Restaurants Inc. (GTIM) repurchased $391000 of stock over the trailing twelve months. This represents a buyback yield of 2.3%.
Q: How does Good Times Restaurants Inc. compare to competitors in Consumer Discretionary?
Compared to other companies in Consumer Discretionary, Good Times Restaurants Inc. (GTIM) shows: ROIC of 3.3% is below the sector median of 9.8% (Bottom 26%). FCF margin of 0.7% trails the sector median of 3.2% (Bottom 30% of sector). These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.
Q: What warning signs should I watch for with Good Times Restaurants Inc.?
Investors in Good Times Restaurants Inc. (GTIM) should monitor these potential warning signs: 1) FCF margin is thin at 0.7%, leaving limited buffer for economic downturns. 2) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-K filed 2025-12-29. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.