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.

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

0.7%

RMCF

-0.4%

US Food

1.0%

US Market


1 Year Return

-2.9%

RMCF

3.4%

US Food

6.7%

US Market

Return vs Industry: RMCF underperformed the US Food industry which returned 3.4% over the past year.

Return vs Market: RMCF underperformed the US Market which returned 6.7% over the past year.


Share holder returns

RMCFIndustryMarket
7 Day0.7%-0.4%1.0%
30 Day0.6%-1.6%-1.8%
90 Day11.2%0.8%-1.8%
1 Year2.3%-2.9%6.5%3.4%9.1%6.7%
3 Year4.2%-9.2%-1.4%-10.1%46.1%36.6%
5 Year-3.1%-22.2%47.5%29.9%66.9%48.6%

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?

47%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: RMCF ($9.4) is trading below our estimate of fair value ($17.58)

Significantly Undervalued: RMCF is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: RMCF is good value based on its PE Ratio (22x) compared to the Food industry average (25.4x).

PE vs Market: RMCF is poor value based on its PE Ratio (22x) compared to the US market (17.5x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: RMCF is overvalued based on its PB Ratio (2.7x) compared to the US Food industry average (2.1x).


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

Earnings vs Savings Rate: RMCF's earnings are forecast to decline over the next 3 years (-3.8% per year).

Earnings vs Market: RMCF's earnings are forecast to decline over the next 3 years (-3.8% per year).

High Growth Earnings: RMCF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if RMCF's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if RMCF's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if RMCF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-11.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RMCF's earnings have declined by -11.5% per year over the past 5 years.

Accelerating Growth: RMCF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RMCF had negative earnings growth (-0.4%) over the past year, making it difficult to compare to the Food industry average (-22.7%).


Return on Equity

High ROE: RMCF's Return on Equity (12.1%) is considered low.


Return on Assets

ROA vs Industry: RMCF has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: RMCF's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Rocky Mountain Chocolate Factory's financial position?


Financial Position Analysis

Short Term Liabilities: RMCF's short term assets ($14.6M) exceeds its short term liabilities ($5.1M)

Long Term Liabilities: RMCF's short term assets (14.6M) exceeds its long term liabilities (3.2M)


Debt to Equity History and Analysis

Debt Level: RMCF's debt to equity ratio (2.3%) is considered satisfactory

Reducing Debt: RMCF's debt to equity ratio has reduced from 27% to 2.3% over the past 5 years.

Debt Coverage: RMCF's debt is well covered by operating cash flow (1150.9%).

Interest Coverage: RMCF's interest payments on its debt are well covered by EBIT (199.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: RMCF's debt is covered by short term assets (assets are 30.412440x debt).


Next Steps

  • Explore more healthy companies in the Food, Beverage & Tobacco industry.

Dividend

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

5.11%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: RMCF's dividend (5.11%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: RMCF's dividend (5.11%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: RMCF's dividends per share have been stable in the past 10 years.

Growing Dividend: RMCF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (112.6%), RMCF's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


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?

18.3yrs

Average management tenure


CEO

Bryan Merryman (58yo)

0.7yrs

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

Compensation vs. Market: Bryan has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

18.3yrs

Average Tenure

58yo

Average Age

Experienced Management: RMCF's management team is seasoned and experienced (18.3 years average tenure).


Board Age and Tenure

15.0yrs

Average Tenure

67.5yo

Average Age

Experienced Board: RMCF's board of directors are seasoned and experienced ( 15 years average tenure).


Insider Trading

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


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: 36.9yrs
    • Compensation: US$404.67k
  • Bryan Merryman (58yo)

    Chairman

    • Tenure: 0.7yrs
    • Compensation: US$344.13k
  • Edward Dudley (55yo)

    Senior Vice President of Sales & Marketing

    • Tenure: 18.3yrs
    • Compensation: US$228.17k
  • Jay Haws (69yo)

    Vice President of Creative Services

    • Tenure: 28.2yrs
    • Compensation: US$219.61k
  • William Jobson (63yo)

    Chief Information Officer

    • Tenure: 18.3yrs
  • Gregory Pope (53yo)

    Senior Vice President of Development

    • Tenure: 15.4yrs
    • Compensation: US$226.69k
  • Tracy Wojcik (56yo)

    Corporate Secretary

    • Tenure: 8.5yrs

Board Members

  • Franklin Crail (77yo)

    Co-Founder & Director

    • Tenure: 36.9yrs
    • Compensation: US$404.67k
  • Bryan Merryman (58yo)

    Chairman

    • Tenure: 0.7yrs
    • Compensation: US$344.13k
  • Clyde Engle (76yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$37.23k
  • Lee Mortenson (83yo)

    Independent Director

    • Tenure: 32.8yrs
    • Compensation: US$49.47k
  • Scott Capdevielle (53yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$44.48k
  • Brett Seabert (59yo)

    Independent Director

    • Tenure: 2.5yrs
    • 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$56.353m
  • Shares outstanding: 5.99m
  • 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 Analysis2019/10/14 01:24
End of Day Share Price2019/10/11 00:00
Earnings2019/08/31
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.

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