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

Fundamentals

Reasonable growth potential with mediocre balance sheet.

Risks

  • Habit Restaurants has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

1.2%

NasdaqGM:HABT

2.5%

US Hospitality

2.1%

US Market


1 Year Return

-44.4%

NasdaqGM:HABT

-4.7%

US Hospitality

-0.04%

US Market

HABT underperformed the Hospitality industry which returned -4.2% over the past year.

HABT underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

HABTIndustryMarket
7 Day1.2%2.5%2.1%
30 Day-10.2%-5.4%-3.2%
90 Day-17.6%1.5%2.8%
1 Year-44.4%-44.4%-2.4%-4.7%2.2%-0.04%
3 Year-42.3%-42.3%45.5%36.3%41.5%32.3%
5 Yearn/a34.1%19.4%55.0%37.8%

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 based on future cash flows and its price relative to the stock market?

35%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Habit Restaurants's share price is below the future cash flow value, and at a moderate discount (> 20%).

Habit Restaurants's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Habit Restaurants is overvalued based on earnings compared to the US Hospitality industry average.

Habit Restaurants is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Habit Restaurants is poor value based on expected growth next year.


Price Based on Value of Assets

Habit Restaurants is good value based on assets compared to the US Hospitality industry average.


Next Steps

Future Growth

How is Habit Restaurants expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

43.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Habit Restaurants's revenue is expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).

Habit Restaurants's earnings are expected to grow significantly at over 20% yearly.

Habit Restaurants's revenue growth is expected to exceed the United States of America market average.

Habit Restaurants's earnings growth is expected to exceed the United States of America market average.

Habit Restaurants's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Habit Restaurants is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Habit Restaurants performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Habit Restaurants's year on year earnings growth rate has been positive over the past 5 years.

Habit Restaurants has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Habit Restaurants has become profitable in the last year making it difficult to compare the US Hospitality industry average.


Return on Equity

Habit Restaurants has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Habit Restaurants used its assets less efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Habit Restaurants's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Habit Restaurants's financial position?


Financial Position Analysis

Habit Restaurants's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Habit Restaurants's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Habit Restaurants's level of debt (0%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (28.2% vs 0% today).

Operating cash flow is negative therefore debt is not well covered.

Habit Restaurants has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are -1.4146228642036E+15x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Habit Restaurants's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Habit Restaurants's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Habit Restaurants has not reported any payouts.

Unable to verify if Habit Restaurants's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Habit Restaurants has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Habit Restaurants's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Russ Bendel (65yo)

5.0yrs

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

Russ's remuneration is about average for companies of similar size in United States of America.

Russ's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.7yrs

Average Tenure

59yo

Average Age

The tenure for the Habit Restaurants management team is about average.


Board Age and Tenure

5.0yrs

Average Tenure

60.5yo

Average Age

The tenure for the Habit Restaurants board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$10,86020 Mar 19
Ira Zecher
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$10.86

Ownership Breakdown


Management Team

  • Ira Fils (54yo)

    CFO, Secretary & Director

    • Tenure: 5.0yrs
    • Compensation: US$918.67k
  • Russ Bendel (65yo)

    CEO, President & Chairman

    • Tenure: 5.0yrs
    • Compensation: US$1.54m
  • Doug Branigan (60yo)

    Chief Development Officer

    • Tenure: 2.3yrs
  • John Phillips (58yo)

    Chief Global Business Partnership Officer

    • Tenure: 0.8yrs
  • Anthony Serritella (59yo)

    Chief Operating Officer

    • Tenure: 0.0yrs
    • Compensation: US$631.34k
  • Peter Whitwell (60yo)

    Chief Quality Officer

    • Tenure: 9.1yrs
  • Iwona Alter (50yo)

    Chief Brand Officer

    • Tenure: 0.7yrs

Board Members

  • Allan Karp (64yo)

    Director

    • Tenure: 5.0yrs
  • Chris Reilly (56yo)

    Director

    • Tenure: 5.1yrs
  • Ira Fils (54yo)

    CFO, Secretary & Director

    • Tenure: 5.0yrs
    • Compensation: US$918.67k
  • Joe Kadow (62yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$97.50k
  • Bill Allen (59yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$102.50k
  • Russ Bendel (65yo)

    CEO, President & Chairman

    • Tenure: 5.0yrs
    • Compensation: US$1.54m
  • Ira Zecher (67yo)

    Director

    • Tenure: 5.0yrs
    • Compensation: US$102.50k
  • Karin Timpone (53yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$61.87k

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$232.640m
  • Market Cap: US$187.012m
  • Shares outstanding: 26.11m
  • 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 sandwich ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 00:31
End of Day Share Price2019/08/22 00:00
Earnings2019/06/25
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.