Diversified Restaurant is part of the consumer cyclical sector and trades as part of the restaurants industry. The company CEO is David Gregory Burke. Diversified Restaurant Inc is a restaurant company and also acts as a franchisee for Buffalo Wild Wings BWW. It operates more than 60 BWW restaurants located in key urban and suburban markets in Florida, Illinois, Indiana and Missouri.



SeekingAlpha:  Diversified Restaurant Holdings (SAUC) CEO David Burke on Q4 2018 Results Earnings Call Transcript

Historical Performance:

Over the last five trading days, SAUC shares returned -6.67% and in the past 30 trading days it returned -9.00%. Over three months, it changed -4.21%. In one year it has changed -34.53% and within that year its 52-week high was 1.55 and its 52-week low was 0.73. SAUC stock is 24.66% above its 52 Week Low.

Our calculations result in a 200 day moving average of 1.14 and a 50 day moving average of 1.02. Right now, SAUC stock is trading -20.51% below its 200 day moving average and may not be a great opportunity to buy as it may continue to trend down.

SeekingAlpha:  Diversified Restaurant Holdings 2018 Q4 – Results – Earnings Call Slides

Liquidity:

The company has a market cap of $30.2m with 33.2m shares outstanding and a float of 27.8m shares. Trading volume was 127,991 shares and has experienced an average volume of 45,240 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.

Earnings:

The last annual reported EPS for Diversified Restaurant was -0.16 which ended on 31st of December 2018. Based on 1 analyst estimate, the estimated EPS for the next quarter is -0.03.

Below was the last reported quarterly earnings per share:
12-31-2018:  -0.07
09-30-2018:  -0.06
06-30-2018:  -0.04
03-31-2018:  0.01

Base on our calculations, the intrinsic value per share is 0.77, which means it might overvalued by -17.97%

The next earnings report will be: 03-27-2019

The growth of the EPS is critical in understanding the current valuation of Diversified Restaurant; the EPS growth rate, as it is usually called, is typically displayed as a percentage, which at this time is hard to estimate, but revenue growth has been -16.00% over the last twelve months.



Indicators Also to Watch:

Based on the latest filings, there is 20.00% of insider ownership and 22.90% of institutional ownership.

I calculated the beta to be 1.07

SeekingAlpha:  Diversified Restaurant Holdings 2018 Q4 – Results – Earnings Call Slides

Fundamental Numbers:

Based on last reported financials, the company’s return on assets is -4.93%, profit margin is -3.27%, price-to-sales is 0.20 and price-to-book is 3.24.

Company Score Card:

Results are out of six:
 0  : Growth Expectations Result
 2  : Financial Safety Result
 0  : Past Performance Result
 0  : Valuation Result
 0  : Dividend Safety Result
 0  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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