Noodles & Co. operates approximately 470 fast-casual restaurants across 31 states, specializing in customizable noodle and pasta dishes, soups, and salads. Headquartered in Broomfield, Colorado, the company employs 7,600 full-time staff.
Based on our analysis, Noodles & Company has received an undervalued rating of 5 out of 5 stars from Cashu, primarily due to significant discrepancies in key financial ratios compared to its sector.
The Price-to-Book (PB) ratio for Noodles & Company stands at 5.14, while the sector average is significantly lower at 2.04. This elevated ratio suggests that investors may be overvaluing the company's net assets, indicating potential market mispricing.
In terms of profitability, Noodles & Company reports a net profit margin of -7.34, contrasting sharply with the sector average of 0.25. A negative profit margin reflects challenges in controlling costs or generating revenue, which may deter investors. However, this could also signal a turnaround opportunity if the company implements effective strategies to improve profitability.
Return on Equity (ROE) for Noodles & Company is a concerning -36.29, compared to a sector average of 1.98. This negative figure highlights inefficiencies in generating profit from shareholders' equity, further supporting the notion that the company is currently undervalued amid potential recovery prospects.
Lastly, the Return on Assets (ROA) ratio at -11.15, against a sector average of 0.12, indicates that the company is struggling to utilize its assets effectively to generate earnings.
In summary, despite the unfavorable financial ratios, the potential for future improvements and market corrections suggests that Noodles & Company may be undervalued.
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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