Biglari Holdings Inc. Fundamental Analysis
Biglari Holdings Inc. (BH-A) shows moderate financial fundamentals with a PE ratio of -48.76, profit margin of -4.71%, and ROE of -3.39%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 9.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BH-A's fundamental strength across five key dimensions:
Efficiency Score
WeakBH-A struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBH-A trades at attractive valuation levels.
Growth Score
ModerateBH-A shows steady but slowing expansion.
Financial Health Score
ExcellentBH-A maintains a strong and stable balance sheet.
Profitability Score
WeakBH-A struggles to sustain strong margins.
Key Financial Metrics
Is BH-A Expensive or Cheap?
P/E Ratio
BH-A trades at -48.76 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BH-A's PEG of -15.22 indicates potential undervaluation.
Price to Book
The market values Biglari Holdings Inc. at 1.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.65 times EBITDA. This is generally considered low.
How Well Does BH-A Make Money?
Net Profit Margin
For every $100 in sales, Biglari Holdings Inc. keeps $-4.71 as profit after all expenses.
Operating Margin
Core operations generate 7.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-3.39 in profit for every $100 of shareholder equity.
ROA
Biglari Holdings Inc. generates $-1.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Biglari Holdings Inc. generates strong operating cash flow of $22.30M, reflecting robust business health.
Free Cash Flow
Biglari Holdings Inc. generates strong free cash flow of $16.30M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $25.96 in free cash annually.
FCF Yield
BH-A converts 8.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-48.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-15.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.30
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.69
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.03
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How BH-A Stacks Against Its Sector Peers
| Metric | BH-A Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -48.76 | 23.90 | Better (Cheaper) |
| ROE | -3.39% | 1176.00% | Weak |
| Net Margin | -4.71% | 2549.00% | Weak |
| Debt/Equity | 0.69 | 0.73 | Neutral |
| Current Ratio | 2.47 | 2.83 | Strong Liquidity |
| ROA | -1.84% | -8407.00% (disorted) | Weak |
BH-A outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Biglari Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-49.30%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
45.11%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-49.39%
Industry Style: Cyclical, Growth, Discretionary
Declining