Jack In The Box Inc (NASDAQ: JACK)

Sector: Consumer Cyclical Industry: Restaurants CIK: 0000807882
Market Cap 358.67 Mn
P/B -0.38
P/E -4.44
P/S 0.24
ROIC (Qtr) -1.08
Div Yield % 4.67
Rev 1y % (Qtr) -6.61
Total Debt (Qtr) 3.12 Bn
Debt/Equity (Qtr) -3.33

About

Jack in the Box Inc., a Delaware corporation, operates in the restaurant industry under the ticker symbol JACK. The company's main business activities include operating and franchising restaurants, offering a wide array of distinctive products, and generating revenue through the sale of food and beverages. Jack in the Box Inc. has a significant presence in the United States, with two primary brands - Jack in the Box and Del Taco. Jack in the Box is the company's flagship brand, offering a variety of products that cater to the fast-casual dining...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 162.36M provides strong 16.56x coverage of stock compensation 9.81M, indicating sustainable incentive practices.
  • Tangible assets of 2.34B provide robust 13.71x coverage of other current liabilities 170.77M, indicating strong asset backing.
  • Operating cash flow of 162.36M provides strong 41.02x coverage of inventory 3.96M, indicating efficient inventory management.
  • Retained earnings of 1.77B provide strong 10.36x coverage of other current liabilities 170.77M, indicating earnings quality.
  • Cash reserves of 81.81M exceed inventory value of 3.96M by 20.67x, indicating strong liquidity and inventory management.

Bear case

  • Operating cash flow of 162.36M barely covers its investment activities of (74.69M), with a coverage ratio of -2.17, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 162.36M provides thin coverage of dividend payments of (16.61M) with a -9.77 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 81.81M provide limited coverage of acquisition spending of (809000), which is -101.13x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 90.31M relative to inventory of 3.96M (22.82 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 162.36M provides minimal -7.34x coverage of tax expenses of (22.11M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Restaurants
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MCD Mcdonalds Corp 222.05 Bn 26.39 8.45 55.82 Bn
2 SBUX Starbucks Corp 95.51 Bn 51.45 2.57 26.61 Bn
3 CMG Chipotle Mexican Grill Inc 50.94 Bn 33.15 4.32 4.98 Bn
4 YUM Yum Brands Inc 43.17 Bn 29.83 5.36 11.55 Bn
5 QSR Restaurant Brands International Inc. 22.43 Bn 24.33 2.42 15.64 Bn
6 DRI Darden Restaurants Inc 21.91 Bn 19.91 1.77 6.16 Bn
7 YUMC Yum China Holdings, Inc. 18.12 Bn 20.05 1.57 1.84 Bn
8 DPZ Dominos Pizza Inc 14.57 Bn 24.72 3.01 5.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.32 2.05
EV to Cash from Ops. EV/CFO 21.07 16.57
EV to Debt EV to Debt 1.10 4.75
EV to EBIT EV/EBIT -143.24 3.45
EV to EBITDA EV/EBITDA 85.01 9.76
EV to Free Cash Flow [EV/FCF] EV/FCF 40.16 29.06
EV to Market Cap EV to Market Cap 9.54 6.55
EV to Revenue EV/Rev 2.33 2.40
Price to Book Value [P/B] P/B -0.38 -1.40
Price to Earnings [P/E] P/E -4.44 13.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -4.86 -9.56
Dividend Payout Ratio % Div Payout % (Qtr) -20.80 18.72
Dividend per Basic Share Div per Share (Qtr) 0.88 0.84
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 19.51 30.41
Interest Coverage Int. cover (Qtr) -0.30 -86.85
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 13.06 -24.56
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 51.04 35.50
Dividend Growth (1y) % Div 1y % (Qtr) -50.00 -0.72
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -102.92 -564.81
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -71.72 25.78
EBIT Growth (1y) % EBIT 1y % (Qtr) -131.55 -507.68
EBT Growth (1y) % EBT 1y % (Qtr) -2,278.56 -41.98
EPS Growth (1y) % EPS 1y % (Qtr) -126.74 -126.51
FCF Growth (1y) % FCF 1y % (Qtr) 526.85 5,724.78
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -9.93 23.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.57 0.99
Cash Payout Ratio Cash Payout (Qtr) 0.07 0.07
Cash Ratio Cash Ratio (Qtr) 0.19 0.78
Current Ratio Curr Ratio (Qtr) 0.51 1.47
Debt to Equity Ratio Debt/Equity (Qtr) -3.33 0.05
Interest Cover Ratio Int Coverage (Qtr) -0.30 -86.85
Times Interest Earned Times Interest Earned (Qtr) -0.30 -86.85
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.30 7.71
EBIT Margin % EBIT Margin % (Qtr) -1.63 -2.27
EBT Margin % EBT Margin % (Qtr) -7.02 -1.97
Gross Margin % Gross Margin % (Qtr) 29.10 34.04
Net Profit Margin % Net Margin % (Qtr) -5.50 -3.69