Fat Brands Stock Buy Hold or Sell Recommendation
| FAT Stock | USD 7.23 0.18 2.55% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding FAT Brands is 'Strong Sell'. Macroaxis provides FAT Brands buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding FAT positions. The advice algorithm takes into account all of FAT Brands' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting FAT Brands' buy or sell advice are summarized below:
Real Value 9.97 | Target Price 20 | Hype Value 7.05 | Market Value 7.23 | Naive Value 6.64 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell FAT Brands given historical horizon and risk tolerance towards FAT Brands. When Macroaxis issues a 'buy' or 'sell' recommendation for FAT Brands, the advice is generated through an automated system that utilizes algorithms and statistical models.
FAT |
Execute FAT Brands Buy or Sell Advice
The FAT recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on FAT Brands. Macroaxis does not own or have any residual interests in FAT Brands or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute FAT Brands' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Weak | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Excited | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
FAT Brands Trading Alerts and Improvement Suggestions
| FAT Brands had very high historical volatility over the last 90 days | |
| The company has 1.38 B in debt with debt to equity (D/E) ratio of 7.2, demonstrating that the company may be unable to create cash to meet all of its financial commitments. FAT Brands has a current ratio of 0.4, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist FAT Brands until it has trouble settling it off, either with new capital or with free cash flow. So, FAT Brands' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like FAT Brands sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for FAT to invest in growth at high rates of return. When we think about FAT Brands' use of debt, we should always consider it together with cash and equity. | |
| The entity reported the last year's revenue of 480.46 M. Reported Net Loss for the year was (90.11 M) with profit before taxes, overhead, and interest of 140.99 M. | |
| FAT Brands has about 23.91 M in cash with (35.61 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.44. | |
| FAT Brands has a poor financial position based on the latest SEC disclosures | |
| Roughly 71.0% of FAT Brands shares are held by company insiders | |
| On 1st of March 2024 FAT Brands paid $ 0.14 per share dividend to its current shareholders | |
| Latest headline from benzinga.com: After THC-Infused Ketchup Success, Fatburger Celebrates 420 With New Special Offering |
FAT Brands Returns Distribution Density
The distribution of FAT Brands' historical returns is an attempt to chart the uncertainty of FAT Brands' future price movements. The chart of the probability distribution of FAT Brands daily returns describes the distribution of returns around its average expected value. We use FAT Brands price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of FAT Brands returns is essential to provide solid investment advice for FAT Brands.
| Mean Return | 0.30 | Value At Risk | -4.84 | Potential Upside | 6.37 | Standard Deviation | 3.40 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of FAT Brands historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
FAT Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as FAT Brands is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading FAT Brands backward and forwards among themselves. FAT Brands' institutional investor refers to the entity that pools money to purchase FAT Brands' securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Cambridge Invest Research Advisors, Inc. | 2023-12-31 | 10.7 K | Advisor Group Holdings, Inc. | 2023-12-31 | 5.3 K | Morgan Stanley - Brokerage Accounts | 2023-12-31 | 4.6 K | Copeland Capital Management, Llc | 2023-12-31 | 3.4 K | Tower Research Capital Llc | 2023-12-31 | 3.1 K | Wells Fargo & Co | 2023-12-31 | 2.5 K | Psi Advisors, Llc | 2023-12-31 | 1000 | Hartland & Co | 2023-12-31 | 500 | Royal Bank Of Canada | 2023-12-31 | 66.0 | Adw Capital Management, Llc | 2023-12-31 | 587.4 K | Vanguard Group Inc | 2023-12-31 | 188.8 K |
FAT Brands Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 853K | (4.8M) | 13.4M | 0.0 | (2.4M) | (2.5M) | |
| Change In Cash | (628K) | 7.2M | 92.7M | (31.2M) | 23.1M | 24.3M | |
| Free Cash Flow | 3.0M | (11.9M) | (9.7M) | (70.6M) | (57.1M) | (54.3M) | |
| Other Non Cash Items | 1.5M | 10.6M | 13.2M | 50.9M | 6.7M | 10.8M | |
| Dividends Paid | 2K | 318K | 13.3M | 16.6M | 16.3M | 17.2M | |
| Capital Expenditures | 45K | 460K | 10.4M | 23.2M | 21.5M | 22.6M | |
| Net Income | (1.0M) | (14.9M) | (31.6M) | (126.2M) | (90.1M) | (85.6M) | |
| End Period Cash Flow | 25K | 7.2M | 99.9M | 68.8M | 91.9M | 96.5M | |
| Net Borrowings | 6.3M | 49.2M | 803.9M | 50.3M | 57.9M | 55.0M | |
| Depreciation | 785K | 1.2M | 8.6M | 27.0M | 31.1M | 32.7M | |
| Change To Netincome | 4.1M | 5.7M | 32.3M | 78.8M | 90.6M | 95.1M | |
| Investments | (10.5M) | (13.4M) | 212K | 1.8M | (12.4M) | (13.0M) |
FAT Brands Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to FAT Brands or Hotels, Restaurants & Leisure sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that FAT Brands' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a FAT stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | 0.16 | |
β | Beta against NYSE Composite | 1.80 | |
σ | Overall volatility | 3.34 | |
Ir | Information ratio | 0.06 |
FAT Brands Volatility Alert
FAT Brands currently demonstrates below-average downside deviation. It has Information Ratio of 0.06 and Jensen Alpha of 0.16. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure FAT Brands' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact FAT Brands' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.FAT Brands Fundamentals Vs Peers
Comparing FAT Brands' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze FAT Brands' direct or indirect competition across all of the common fundamentals between FAT Brands and the related equities. This way, we can detect undervalued stocks with similar characteristics as FAT Brands or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of FAT Brands' fundamental indicators could also be used in its relative valuation, which is a method of valuing FAT Brands by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare FAT Brands to competition |
| Fundamentals | FAT Brands | Peer Average |
| Return On Equity | -1.57 | -0.31 |
| Return On Asset | 0.0031 | -0.14 |
| Profit Margin | (0.19) % | (1.27) % |
| Operating Margin | (0.12) % | (5.51) % |
| Current Valuation | 1.6 B | 16.62 B |
| Shares Outstanding | 15.69 M | 571.82 M |
| Shares Owned By Insiders | 70.79 % | 10.09 % |
| Shares Owned By Institutions | 6.95 % | 39.21 % |
| Number Of Shares Shorted | 54.76 K | 4.71 M |
| Price To Earning | 16.21 X | 28.72 X |
| Price To Book | 12.81 X | 9.51 X |
| Price To Sales | 0.25 X | 11.42 X |
| Revenue | 480.46 M | 9.43 B |
| Gross Profit | 140.99 M | 27.38 B |
| EBITDA | 56.83 M | 3.9 B |
| Net Income | (90.11 M) | 570.98 M |
| Cash And Equivalents | 23.91 M | 2.7 B |
| Cash Per Share | 1.44 X | 5.01 X |
| Total Debt | 1.38 B | 5.32 B |
| Debt To Equity | 7.20 % | 48.70 % |
| Current Ratio | 0.41 X | 2.16 X |
| Book Value Per Share | (17.75) X | 1.93 K |
| Cash Flow From Operations | (35.61 M) | 971.22 M |
| Short Ratio | 3.88 X | 4.00 X |
| Earnings Per Share | (5.85) X | 3.12 X |
| Target Price | 20.0 | |
| Number Of Employees | 2.6 K | 18.84 K |
| Beta | 1.87 | -0.15 |
| Market Capitalization | 121.29 M | 19.03 B |
| Total Asset | 1.39 B | 29.47 B |
| Retained Earnings | (268.78 M) | 9.33 B |
| Working Capital | (155.59 M) | 1.48 B |
| Current Asset | 1.99 M | 9.34 B |
Note: Acquisition by Kepp Kenneth of 30636 shares of FAT Brands at 5.55 subject to Rule 16b-3 [view details]
FAT Brands Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as FAT . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About FAT Brands Buy or Sell Advice
When is the right time to buy or sell FAT Brands? Buying financial instruments such as FAT Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Other Current Liabilities | 153.4M | 182.2M | 192.4M | 202.1M | Total Assets | 1.3B | 1.2B | 1.4B | 1.5B |
Use Investing Ideas to Build Portfolios
In addition to having FAT Brands in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Companies specializing in advertising, marketing and advertising services. The Advertising theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Advertising Theme or any other thematic opportunities.
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Check out FAT Brands Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more information on how to buy FAT Stock please use our How to Invest in FAT Brands guide.Note that the FAT Brands information on this page should be used as a complementary analysis to other FAT Brands' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Complementary Tools for FAT Stock analysis
When running FAT Brands' price analysis, check to measure FAT Brands' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy FAT Brands is operating at the current time. Most of FAT Brands' value examination focuses on studying past and present price action to predict the probability of FAT Brands' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move FAT Brands' price. Additionally, you may evaluate how the addition of FAT Brands to your portfolios can decrease your overall portfolio volatility.
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Is FAT Brands' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of FAT Brands. If investors know FAT will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about FAT Brands listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 112.056 | Dividend Share 0.56 | Earnings Share (5.85) | Revenue Per Share 28.945 | Quarterly Revenue Growth 0.528 |
The market value of FAT Brands is measured differently than its book value, which is the value of FAT that is recorded on the company's balance sheet. Investors also form their own opinion of FAT Brands' value that differs from its market value or its book value, called intrinsic value, which is FAT Brands' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because FAT Brands' market value can be influenced by many factors that don't directly affect FAT Brands' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between FAT Brands' value and its price as these two are different measures arrived at by different means. Investors typically determine if FAT Brands is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, FAT Brands' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.