Reborn Coffee, Inc. (NASDAQ: REBN)

Sector: Consumer Cyclical Industry: Restaurants CIK: 0001707910
Market Cap 7.33 Mn
P/B -2.14
P/E -0.57
P/S 1.10
ROIC (Qtr) -700.99
Div Yield % 0.00
Rev 1y % (Qtr) 7.76
Total Debt (Qtr) 4.35 Mn
Debt/Equity (Qtr) -1.27

About

Reborn Coffee, Inc. (REBN) operates in the specialty coffee industry, with a focus on providing high-quality, personalized coffee experiences. The company, which was established in 2018 and is headquartered in Brea, California, is on a mission to redefine the coffee experience. Reborn Coffee generates revenue through the sale of specialty coffee products and the operation of its retail locations and kiosks. The company's product range includes whole bean coffee, pour over packs, and cold brew packs, with its signature pour over packs being a standout...

Read more

Price action

Investment thesis

Bull case

  • Tangible assets of 6.20M provide exceptional 88.55x coverage of deferred revenue 70000, showing strong service capability backing.
  • Operating cash flow of (4.93M) fully covers other non-current liabilities (70000) by 70.39x, showing strong long-term stability.
  • Retained earnings of (32.54M) represent substantial 9.51x of equity (3.42M), indicating strong internal capital generation.
  • Tangible assets of 6.20M provide robust 42.03x coverage of receivables 147459, showing strong asset quality.

Bear case

  • With cash reserves of 44045 against inventory of 200662, the 0.22 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of (4.93M) provides insufficient coverage of deferred revenue obligations of 70000, which is -70.39x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (4.93M) shows concerning coverage of stock compensation expenses of 4.78M, with a -1.03 ratio indicating potential earnings quality issues.
  • Free cash flow of (5.07M) provides weak coverage of capital expenditures of 146657, with a -34.60 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (4.93M) provides minimal -1585.35x coverage of tax expenses of 3108, 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 1.83 2.05
EV to Cash from Ops. EV/CFO -2.30 16.57
EV to Debt EV to Debt 2.60 4.75
EV to EBIT EV/EBIT -1.00 3.45
EV to EBITDA EV/EBITDA -1.08 9.76
EV to Free Cash Flow [EV/FCF] EV/FCF -2.23 29.06
EV to Market Cap EV to Market Cap 1.54 6.55
EV to Revenue EV/Rev 1.70 2.40
Price to Book Value [P/B] P/B -2.14 -1.40
Price to Earnings [P/E] P/E -0.57 13.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -9.56
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 18.72
Dividend per Basic Share Div per Share (Qtr) 0.00 0.84
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 30.41
Interest Coverage Int. cover (Qtr) -7.60 -86.85
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 93.65 -24.56
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -58.39 35.50
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.72
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -145.63 -564.81
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -155.40 25.78
EBIT Growth (1y) % EBIT 1y % (Qtr) -145.61 -507.68
EBT Growth (1y) % EBT 1y % (Qtr) -168.87 -41.98
EPS Growth (1y) % EPS 1y % (Qtr) -5.79 -126.51
FCF Growth (1y) % FCF 1y % (Qtr) 12.76 5,724.78
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.97 23.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.08 0.99
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 0.01 0.78
Current Ratio Curr Ratio (Qtr) 0.08 1.47
Debt to Equity Ratio Debt/Equity (Qtr) -1.27 0.05
Interest Cover Ratio Int Coverage (Qtr) -7.60 -86.85
Times Interest Earned Times Interest Earned (Qtr) -7.60 -86.85
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -164.00 7.71
EBIT Margin % EBIT Margin % (Qtr) -169.19 -2.27
EBT Margin % EBT Margin % (Qtr) -191.45 -1.97
Gross Margin % Gross Margin % (Qtr) 55.50 34.04
Net Profit Margin % Net Margin % (Qtr) -191.50 -3.69