Rave Restaurant Group, Inc. (RAVE) stock analysis
Close on Nov 12, 2026Market cap $29.99MP/E 10.0Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Solid19 of 30 checks passed
Rave Restaurant passes 19 of the 30 checks behind our score; 7 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 6/6
- Growth
- 2/6
- Past performance
- 5/6
- Financial health
- 6/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 42.9% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $2.15 is below our fair value estimate of $3.77.
Return on equity over 15%
Return on equity was 17.6% over the last twelve months and averaged 31.4% over five years.
Return on capital over 10%
Return on invested capital was 68.9%, above the 10% that usually covers the cost of capital.
What to watch
Revenue growing under 10% a year
Revenue grew 2.8% a year over the last three fiscal years, short of the 10% we look for.
Earnings growth not accelerating
Net income grew 2.7% over the last twelve months, against a 5-year average of 13.6% a year.
Net margin below its 5-year average
Net margin was 22.3% over the last twelve months, against a 5-year average of 30.7%.
No dividend
Rave Restaurant has not paid a dividend in the last twelve months.
Valuation6/6
P/E below its 5-year median
Rave Restaurant's P/E of 10.2 is below its own 5-year median of 13.4.
P/E below the industry
Rave Restaurant's P/E of 10.2 is below the Groceries and Related Products median of 27.7.
EV/EBITDA below its 5-year median
Rave Restaurant's EV/EBITDA of 4.3 is below its 5-year median of 7.5.
P/B below the industry
Rave Restaurant's price-to-book of 1.69 is below the Groceries and Related Products median of 3.47.
Trading below fair value
The share price of $2.15 is below our fair value estimate of $3.77.
Margin of safety over 20%
The price is 42.9% below fair value, more than the 20% cushion we look for.
Growth2/6
Revenue growing under 10% a year
Revenue grew 2.8% a year over the last three fiscal years, short of the 10% we look for.
EPS growing 10%+ a year
Diluted EPS grew 26.0% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew 2.7% over the last twelve months, against a 5-year average of 13.6% a year.
Growing faster than the industry
Revenue grew 6.7% over the last twelve months; the Groceries and Related Products median is 5.2%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin trend
This company does not report gross profit.
Past performance5/6
Return on equity over 15%
Return on equity was 17.6% over the last twelve months and averaged 31.4% over five years.
Return on capital over 10%
Return on invested capital was 68.9%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Rave Restaurant's return on equity of 17.6% is above the Groceries and Related Products median of 7.2%.
Earnings grew over 5 years
Net income grew 13.6% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 22.3% over the last twelve months, against a 5-year average of 30.7%.
Net margin above the industry
Rave Restaurant's net margin of 22.3% is above the Groceries and Related Products median of 1.0%.
Financial health6/6
No debt
Rave Restaurant has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term assets cover short-term debts
Current assets are 11.15 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 12.00; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Rave Restaurant has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$3.77
The share price is 43% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 20.5× | 13.4× | 27.7× | $4.30 | 40% |
| EV/EBITDA | 9.9× | 7.5× | 12.3× | $3.58 | 35% |
| P/B | 3.1× | 2.7× | 3.5× | $3.92 | 10% |
| Earnings power | 8.5% cost of equity | – | – | $2.66 | 15% |
| Fair value | $3.77 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 13.4
- Groceries and Related Products median 27.7
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
High risk
- Average value traded per day
- $89.15K
- Value traded per 1% price move
- $39.77K
Downside
High risk
- Typical loss in a bad month
- 25.0%
- Volatility (annualized)
- 46%
- Sharpe ratio, 1 year
- -0.66
- Beta to the S&P 500 (5Y)
- 0.72
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2012 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +7.2% | +2.8% | +8.5% | -14.2% | |
| Operating income | +7.0% | – | – | – | |
| Net income | +6.5% | +21.3% | +13.6% | – | |
| EPS, diluted | +5.3% | +26.0% | +17.3% | – | |
| Free cash flow | +4.9% | +8.1% | +22.4% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | -341.1% | 48.7% | 18.3% | |
| Return on assets | -89.1% | 13.2% | 15.9% | |
| Current ratio | 0.76 | 2.29 | 9.31 | |
| Inventory turnover | – | – | – | |
| Capex to revenue | – | 2.5% | 0.4% | |
| Diluted shares | 0M | 18M | 14M |
Where the cash went
Fiscal 2022 to 2026, five years combined
Rave Restaurant generated $14.02M from operations and spent $7.01M on capital expenditure, dividends and share buybacks. 4% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 22.3% | 0.72× | 1.15× | 18.3% |
| FY2025 | 22.4% | 0.74× | 1.21× | 20.1% |
| FY2024 | 20.4% | 0.81× | 1.30× | 21.4% |
| FY2023 | 13.6% | 0.73× | 1.38× | 13.6% |
| FY2022 | 75.0% | 0.67× | 1.66× | 83.8% |
| FY2021 | 17.7% | 0.75× | 3.70× | 48.7% |
| FY2020 | -42.2% | 1.00× | 4.08× | -171.5% |
| FY2019 | -6.1% | 1.15× | 1.99× | -14.0% |
| FY2018 | 12.6% | 1.47× | 4.87× | 90.6% |
| FY2017 | -47.9% | 1.86× | 3.83× | -341.1% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$2.88M
- Cash generatingOperating cash flow above zero$3.55M
- Return on assets improvedROA up on the prior year17.1% → 17.4%
- Earnings backed by cashOperating cash flow above net income$3.55M vs $2.88M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose6.61 → 9.31
- No dilutionShare count did not rise15M → 14M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.76 → 0.78
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