NasdaqGM:RMCF

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Mediocre balance sheet and 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.1%

RMCF

-0.1%

US Food

2.6%

US Market


1 Year Return

-64.7%

RMCF

4.7%

US Food

15.4%

US Market

Return vs Industry: RMCF underperformed the US Food industry which returned 6% over the past year.

Return vs Market: RMCF underperformed the US Market which returned 16.2% over the past year.


Shareholder returns

RMCFIndustryMarket
7 Day-8.1%-0.1%2.6%
30 Day-21.3%5.7%6.1%
90 Day-35.6%9.1%16.6%
1 Year-63.2%-64.7%7.3%4.7%17.8%15.4%
3 Year-68.3%-72.2%4.8%-4.0%43.9%34.7%
5 Year-68.2%-74.6%14.9%-0.4%76.2%57.3%

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?

1.21x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RMCF ($3.17) is trading above our estimate of fair value ($0.44)

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


Price To Earnings Ratio

PE vs Industry: RMCF is unprofitable, so we can't compare its PE Ratio to the US Food industry average.

PE vs Market: RMCF is unprofitable, so we can't compare its PE Ratio to the US market.


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 good value based on its PB Ratio (1.2x) compared to the US Food industry average (1.9x).


Next Steps

Future Growth

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

22.7%

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.


Next Steps

Past Performance

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

-26.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RMCF is currently unprofitable.

Growing Profit Margin: RMCF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RMCF is unprofitable, and losses have increased over the past 5 years at a rate of 26.4% per year.

Accelerating Growth: Unable to compare RMCF's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RMCF is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-5.7%).


Return on Equity

High ROE: RMCF has a negative Return on Equity (-21.13%), as it is currently unprofitable.


Next Steps

Financial Health

How is Rocky Mountain Chocolate Factory's financial position?


Financial Position Analysis

Short Term Liabilities: RMCF's short term assets ($14.8M) exceed its short term liabilities ($9.7M).

Long Term Liabilities: RMCF's short term assets ($14.8M) exceed its long term liabilities ($3.6M).


Debt to Equity History and Analysis

Debt Level: RMCF's debt to equity ratio (31.5%) is considered satisfactory.

Reducing Debt: RMCF's debt to equity ratio has increased from 31.1% to 31.5% over the past 5 years.

Debt Coverage: RMCF's debt is not well covered by operating cash flow (19.4%).

Interest Coverage: Insufficient data to determine if RMCF's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

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?

19.2yrs

Average management tenure


CEO

Bryan Merryman (59 yo)

1.5yrs

Tenure

US$1,442,050

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 ($USD1.44M) is above average for companies of similar size in the US market ($USD606.98K).

Compensation vs Earnings: Bryan's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Bryan Merryman
Chairman1.5yrsUS$1.44m1.12%
$ 230.3k
Franklin Crail
Co-Founder & Director37.75yrsUS$43.78k7.58%
$ 1.6m
Edward Dudley
Senior Vice President of Sales & Marketing19.17yrsUS$464.63k0.68%
$ 139.4k
Gregory Pope
Senior Vice President of Franchise Development16.25yrsUS$462.94k1.07%
$ 220.1k
William Jobson
Chief Information Officer19.17yrsno datano data
Tracy Wojcik
Corporate Secretary9.33yrsno datano data
Jay Haws
Vice President of Creative Services29yrsUS$219.61kno data

19.2yrs

Average Tenure

59yo

Average Age

Experienced Management: RMCF's management team is seasoned and experienced (19.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bryan Merryman
Chairman1.5yrsUS$1.44m1.12%
$ 230.3k
Franklin Crail
Co-Founder & Director37.75yrsUS$43.78k7.58%
$ 1.6m
Scott Capdevielle
Independent Director11.17yrsUS$86.39k0.29%
$ 59.5k
Mary Thompson
Independent Director0.58yrUS$2.07kno data
Tariq Farid
Director0.58yrUS$1.79kno data
Andrew Berger
Independent Director0.58yrUS$2.07kno data
Brett Seabert
Lead Independent Directorno dataUS$56.76kno data

1.0yrs

Average Tenure

57yo

Average Age

Experienced Board: RMCF's board of directors are not considered experienced ( 1 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: 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

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$20.500m
  • Shares outstanding: 6.07m
  • 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 Analysis2020/08/06 00:22
End of Day Share Price2020/08/05 00:00
Earnings2020/05/31
Annual Earnings2020/02/29


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.