Jack in the Box, headquartered in San Diego, operates and franchises approximately 2,200 quick-service restaurants across 22 states, employing 1,089 full-time staff. The chain offers a diverse menu, including burgers, breakfast items, and customizable meals.
Based on our analysis, Jack In The Box currently holds an undervalued rating of 4 out of 5 stars from Cashu. This rating stems from several key financial ratios that indicate potential for improvement and growth within the company.
The Price-to-Book (PB) Ratio for Jack In The Box is 176.87, significantly higher than the sector average of 1.97. A high PB ratio may suggest that the market has high expectations for the company's future performance, which could indicate that current share prices are inflated compared to the company's book value.
The Net Profit Margin stands at -2.34, contrasting with the sector average of 0.09. This negative margin highlights current challenges in profitability but also suggests there may be room for operational improvements that could enhance future earnings.
Remarkably, the Return on Equity (ROE) is an astonishing 680.00, far exceeding the sector average of 1.09. This indicates that Jack In The Box has been able to generate significant returns relative to shareholders' equity, suggesting effective management and strategic investments.
Additionally, the Dividend Yield is recorded at 8.71, compared to the sector average of 2.56. This high yield may attract income-seeking investors, reflecting the company's commitment to returning value to shareholders despite its current profitability struggles.
Lastly, the Return on Assets Ratio is at -1.34, against a sector average of -0.10. This negative figure indicates inefficiencies in using assets to generate earnings, yet it may signal opportunities for operational enhancement.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Consumer Discretionary
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