NasdaqGM:RMCF

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.

Risks

  • Rocky Mountain Chocolate Factory is not covered by any analysts.

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


Market Performance


7 Day Return

3.8%

NasdaqGM:RMCF

1.5%

US Food

2.1%

US Market


1 Year Return

-8.1%

NasdaqGM:RMCF

1.0%

US Food

-0.04%

US Market

RMCF underperformed the Food industry which returned -0.3% over the past year.

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


Share holder returns

RMCFIndustryMarket
7 Day3.8%1.5%2.1%
30 Day12.4%-0.5%-3.2%
90 Day-1.1%4.0%2.8%
1 Year-3.3%-8.1%4.0%1.0%2.2%-0.04%
3 Year0.2%-12.5%-5.8%-14.0%41.5%32.3%
5 Year-9.1%-26.0%42.2%25.3%55.0%37.8%

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

23.55x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Rocky Mountain Chocolate Factory's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Rocky Mountain Chocolate Factory's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Rocky Mountain Chocolate Factory is good value based on earnings compared to the US Food industry average.

Rocky Mountain Chocolate Factory is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Rocky Mountain Chocolate Factory, we can't assess if its growth is good value.


Price Based on Value of Assets

Rocky Mountain Chocolate Factory is overvalued based on assets compared to the US Food industry average.


Next Steps

Future Growth

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

-3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Rocky Mountain Chocolate Factory is high growth as no revenue estimate data is available.

Rocky Mountain Chocolate Factory's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Rocky Mountain Chocolate Factory's revenue growth to the United States of America market average as no estimate data is available.

Rocky Mountain Chocolate Factory's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Rocky Mountain Chocolate Factory's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Rocky Mountain Chocolate Factory will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

-10.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Rocky Mountain Chocolate Factory's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Rocky Mountain Chocolate Factory's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Rocky Mountain Chocolate Factory's 1-year earnings growth is negative, it can't be compared to the US Food industry average.


Return on Equity

Rocky Mountain Chocolate Factory has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Rocky Mountain Chocolate Factory used its assets more efficiently than the US Food industry average last year based on Return on Assets.


Return on Capital Employed

Rocky Mountain Chocolate Factory's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Rocky Mountain Chocolate Factory's financial position?


Financial Position Analysis

Rocky Mountain Chocolate Factory is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Rocky Mountain Chocolate Factory's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Rocky Mountain Chocolate Factory's level of debt (4%) 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 (26.9% vs 4% today).

Debt is well covered by operating cash flow (538.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 96.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 17.3x debt.


Next Steps

Dividend

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

5.11%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Rocky Mountain Chocolate Factory before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Rocky Mountain Chocolate Factory's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Rocky Mountain Chocolate Factory's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.8x coverage).


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 Rocky Mountain Chocolate Factory's salary, the management and board of directors tenure and is there insider trading?

18.2yrs

Average management tenure


CEO

Bryan Merryman (58yo)

0.5yrs

Tenure

US$344,125

Compensation

Mr. Bryan J. Merryman has been Chairman of the Board, Chief Executive Officer, Principal Accounting Officer and President of Rocky Mountain Chocolate Factory, Inc. since February 26, 2019. Mr. Merryman has ...


CEO Compensation Analysis

Bryan's remuneration is lower than average for companies of similar size in United States of America.

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


Management Age and Tenure

18.2yrs

Average Tenure

58yo

Average Age

The average tenure for the Rocky Mountain Chocolate Factory management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

14.9yrs

Average Tenure

67.5yo

Average Age

The average tenure for the Rocky Mountain Chocolate Factory board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$113,73922 May 19
AB Value Management LLC
EntityCompany
Shares11,996
Max PriceUS$9.55
BuyUS$2,922,26726 Apr 19
AB Value Management LLC
EntityCompany
Shares303,770
Max PriceUS$9.62

Ownership Breakdown


Management Team

  • Franklin Crail (77yo)

    Co-Founder & Director

    • Tenure: 36.8yrs
    • Compensation: US$404.67k
  • Bryan Merryman (58yo)

    Chairman

    • Tenure: 0.5yrs
    • Compensation: US$344.13k
  • Edward Dudley (55yo)

    Senior Vice President of Sales & Marketing

    • Tenure: 18.2yrs
    • Compensation: US$228.17k
  • Jay Haws (69yo)

    Vice President of Creative Services

    • Tenure: 28.0yrs
    • Compensation: US$219.61k
  • William Jobson (63yo)

    Chief Information Officer

    • Tenure: 18.2yrs
  • Gregory Pope (53yo)

    Senior Vice President of Development

    • Tenure: 15.3yrs
    • Compensation: US$226.69k
  • Tracy Wojcik (56yo)

    Corporate Secretary

    • Tenure: 8.3yrs

Board Members

  • Franklin Crail (77yo)

    Co-Founder & Director

    • Tenure: 36.8yrs
    • Compensation: US$404.67k
  • Bryan Merryman (58yo)

    Chairman

    • Tenure: 0.5yrs
    • Compensation: US$344.13k
  • Clyde Engle (76yo)

    Independent Director

    • Tenure: 19.6yrs
    • Compensation: US$37.23k
  • Lee Mortenson (83yo)

    Independent Director

    • Tenure: 32.6yrs
    • Compensation: US$49.47k
  • Scott Capdevielle (53yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: US$44.48k
  • Brett Seabert (59yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$44.48k

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$56.079m
  • Shares outstanding: 5.97m
  • Website: https://www.rmcf.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RMCFNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDFeb 1986

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 Analysis2019/08/22 23:41
End of Day Share Price2019/08/22 00:00
Earnings2019/05/31
Annual Earnings2019/02/28


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.