NasdaqGM:RMCF

Stock Analysis Report

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Market Cap

US$51.4m

Last Updated

2021/08/01 22:15 UTC

Data Sources

Company Financials

Executive Summary

Rocky Mountain Chocolate Factory, Inc., together with its subsidiaries, operates as a confectionery franchisor, manufacturer, and retail operator. More Details


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

How has Rocky Mountain Chocolate Factory's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RMCF is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: RMCF's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

1.7%

RMCF

-1.2%

US Food

-0.4%

US Market


1 Year Return

152.7%

RMCF

10.5%

US Food

35.9%

US Market

Return vs Industry: RMCF exceeded the US Food industry which returned 10.4% over the past year.

Return vs Market: RMCF exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

RMCFIndustryMarket
7 Day1.7%-1.2%-0.4%
30 Day9.0%-3.1%-0.3%
90 Day30.1%-4.0%3.1%
1 Year152.7%152.7%13.1%10.5%38.0%35.9%
3 Year-9.8%-17.7%23.2%13.2%62.9%52.7%
5 Year-0.2%-16.3%13.4%-2.2%121.3%96.9%

Long-Term Price Volatility Vs. Market

How volatile is Rocky Mountain Chocolate Factory's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rocky Mountain Chocolate Factory undervalued compared to its fair value and its price relative to the market?

15.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RMCF ($8.39) is trading above our estimate of fair value ($1.01)

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


Price To Earnings Ratio

PE vs Industry: RMCF is good value based on its PE Ratio (15.2x) compared to the US Food industry average (21.3x).

PE vs Market: RMCF is good value based on its PE Ratio (15.2x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RMCF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RMCF is overvalued based on its PB Ratio (2.6x) compared to the US Food industry average (2.2x).


Future Growth

How is Rocky Mountain Chocolate Factory forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.7%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Rocky Mountain Chocolate Factory has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Rocky Mountain Chocolate Factory performed over the past 5 years?

-41.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RMCF has high quality earnings.

Growing Profit Margin: RMCF became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RMCF's earnings have declined by 41.7% per year over the past 5 years.

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

Earnings vs Industry: RMCF has become profitable in the last year, making it difficult to compare its past year earnings growth to the Food industry (25.4%).


Return on Equity

High ROE: RMCF's Return on Equity (17%) is considered low.


Financial Health

How is Rocky Mountain Chocolate Factory's financial position?


Financial Position Analysis

Short Term Liabilities: RMCF's short term assets ($13.3M) exceed its short term liabilities ($3.6M).

Long Term Liabilities: RMCF's short term assets ($13.3M) exceed its long term liabilities ($2.5M).


Debt to Equity History and Analysis

Debt Level: RMCF is debt free.

Reducing Debt: RMCF has no debt compared to 5 years ago when its debt to equity ratio was 25.7%.

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

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


Balance Sheet


Dividend

What is Rocky Mountain Chocolate Factory current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: RMCF is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RMCF'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?

20.1yrs

Average management tenure


CEO

Bryan Merryman (60 yo)

2.42yrs

Tenure

US$359,275

Compensation

Mr. Bryan J. Merryman has been Chairman of the Board, Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer and President of Rocky Mountain Chocolate Factory, Inc. since February 2...


CEO Compensation Analysis

Compensation vs Market: Bryan's total compensation ($USD359.28K) is below average for companies of similar size in the US market ($USD551.21K).

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


Leadership Team

Experienced Management: RMCF's management team is seasoned and experienced (20.1 years average tenure).


Board Members

Experienced Board: RMCF's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: RMCF 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

Rocky Mountain Chocolate Factory, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rocky Mountain Chocolate Factory, Inc.
  • Ticker: RMCF
  • Exchange: NasdaqGM
  • Founded: 1981
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$51.383m
  • Shares outstanding: 6.12m
  • Website: https://www.rmcf.com

Number of Employees


Location

  • Rocky Mountain Chocolate Factory, Inc.
  • 265 Turner Drive
  • Durango
  • Colorado
  • 81303
  • United States

Listings


Biography

Rocky Mountain Chocolate Factory, Inc., together with its subsidiaries, operates as a confectionery franchisor, manufacturer, and retail operator. It operates through five segments: Franchising, Manufactur...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:15
End of Day Share Price2021/07/30 00:00
Earnings2021/05/31
Annual Earnings2021/02/28


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.