NasdaqGM:HABT

Stock Analysis Report

Executive Summary

The Habit Restaurants, Inc., a holding company, operates and franchises fast casual restaurants under The Habit Burger Grill name.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Habit Restaurants's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HABT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.07%

HABT

-11.4%

US Hospitality

-7.4%

US Market


1 Year Return

29.0%

HABT

-4.5%

US Hospitality

10.5%

US Market

Return vs Industry: HABT exceeded the US Hospitality industry which returned -4.5% over the past year.

Return vs Market: HABT exceeded the US Market which returned 10.5% over the past year.


Shareholder returns

HABTIndustryMarket
7 Day-0.07%-11.4%-7.4%
30 Day0.3%-7.7%-3.6%
90 Day30.7%-7.3%-0.6%
1 Year29.0%29.0%-2.0%-4.5%12.8%10.5%
3 Year1.5%1.5%18.9%11.0%37.4%28.6%
5 Year-56.5%-56.5%30.7%16.7%61.3%43.6%

Price Volatility Vs. Market

How volatile is Habit Restaurants's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Habit Restaurants undervalued compared to its fair value and its price relative to the market?

82.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HABT ($13.96) is trading above our estimate of fair value ($11.1)

Significantly Below Fair Value: HABT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HABT is poor value based on its PE Ratio (82.1x) compared to the Hospitality industry average (21.5x).

PE vs Market: HABT is poor value based on its PE Ratio (82.1x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: HABT is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: HABT is overvalued based on its PB Ratio (2.2x) compared to the US Hospitality industry average (2x).


Next Steps

Future Growth

How is Habit Restaurants forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

24.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HABT's forecast earnings growth (24.4% per year) is above the savings rate (1.7%).

Earnings vs Market: HABT's earnings (24.4% per year) are forecast to grow faster than the US market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HABT's revenue (8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: HABT's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HABT's Return on Equity is forecast to be low in 3 years time (1.4%).


Next Steps

Past Performance

How has Habit Restaurants performed over the past 5 years?

-0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HABT has high quality earnings.

Growing Profit Margin: HABT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HABT has become profitable over the past 5 years, growing earnings by -0.6% per year.

Accelerating Growth: HABT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HABT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (-8.2%).


Return on Equity

High ROE: HABT's Return on Equity (3.1%) is considered low.


Next Steps

Financial Health

How is Habit Restaurants's financial position?


Financial Position Analysis

Short Term Liabilities: HABT's short term assets ($47.4M) do not cover its short term liabilities ($67.1M).

Long Term Liabilities: HABT's short term assets ($47.4M) do not cover its long term liabilities ($248.3M).


Debt to Equity History and Analysis

Debt Level: HABT is debt free.

Reducing Debt: HABT has no debt compared to 5 years ago when its debt to equity ratio was 3.1%.

Debt Coverage: HABT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HABT has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: HABT has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if HABT's debt is covered by short term assets.


Next Steps

Dividend

What is Habit Restaurants's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HABT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HABT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HABT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HABT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HABT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Russ Bendel (65yo)

5.5yrs

Tenure

US$1,535,448

Compensation

Mr. Russell W. Bendel, also known as Russ, has been the Chief Executive Officer and President of The Habit Restaurants, Inc. since August 2014 and The Habit Restaurants, LLC since June 2008 and serves its  ...


CEO Compensation Analysis

Compensation vs Market: Russ's total compensation ($USD1.54M) is about average for companies of similar size in the US market ($USD1.73M).

Compensation vs Earnings: Russ's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Russell Bendel
CEO, President & Chairman5.5yrsUS$1.54m0.15% $541.1k
Ira Fils
CFO, Secretary & Director5.5yrsUS$918.67k0.10% $374.3k
Anthony Serritella
Chief Operating Officer0yrsUS$631.34k0.067% $243.6k
Peter Whitwell
Chief Quality Officer9.6yrsno data0.039% $142.1k
Douglas Branigan
Chief Development Officer2.8yrsno data0.0034% $12.3k
Iwona Alter
Chief Brand Officer1.2yrsno data0.019% $68.9k
John Phillips
Chief Global Business Partnership Officer1.3yrsno data0.017% $63.5k

4.2yrs

Average Tenure

59yo

Average Age

Experienced Management: HABT's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Russell Bendel
CEO, President & Chairman5.5yrsUS$1.54m0.15% $541.1k
Ira Fils
CFO, Secretary & Director5.5yrsUS$918.67k0.10% $374.3k
Allan Karp
Independent Director5.5yrsno datano data
Christopher Reilly
Independent Director5.6yrsno datano data
Joseph Kadow
Independent Director4.4yrsUS$97.50k0.028% $103.5k
A. Allen
Independent Director5.3yrsUS$102.50k0.089% $325.9k
Ira Zecher
Independent Director5.5yrsUS$102.50k0.0043% $15.7k
Karin Timpone
Independent Director1.3yrsUS$61.87k0.0055% $20.0k

5.5yrs

Average Tenure

60.5yo

Average Age

Experienced Board: HABT's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Habit Restaurants, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Habit Restaurants, Inc.
  • Ticker: HABT
  • Exchange: NasdaqGM
  • Founded: 1969
  • Industry: Restaurants
  • Sector: Consumer Services
  • Implied Market Cap: US$364.846m
  • Market Cap: US$290.083m
  • Shares outstanding: 26.12m
  • Website: https://www.habitburger.com

Number of Employees


Location

  • The Habit Restaurants, Inc.
  • 17320 Red Hill Avenue
  • Suite 140
  • Irvine
  • California
  • 92614
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HABTNasdaqGM (Nasdaq Global Market)YesClass A Common StockUSUSDNov 2014
0BNDB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 2014

Biography

The Habit Restaurants, Inc., a holding company, operates and franchises fast casual restaurants under The Habit Burger Grill name. It specializes in offering made-to-order char-grilled burgers and sandwiches featuring choice tri-tip steak, grilled chicken, and sushi-grade tuna cooked over an open flame; and salads, as well as sides, shakes, and malts. As of May 1, 2019, the company had 255 restaurants in California, Arizona, Utah, New Jersey, Florida, Idaho, Virginia, Nevada, Washington, Maryland, and Pennsylvania, as well as 5 international locations. The Habit Restaurants, Inc. was founded in 1969 and is headquartered in Irvine, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 02:30
End of Day Share Price2020/02/25 00:00
Earnings2019/09/24
Annual Earnings2018/12/25


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.