Cracker Barrel Old Country Store(CBRL:NSD) Citigroup lowers the target price to $94

STA Research
by: STA Research

Citigroup maintains Cracker Barrel Old Country Store with a Sell rating and lowers the target price to $94 from $97 on the company’s stock.

Based on the Cracker Barrel Old Country Store stock forecasts from 4 analysts, the average analyst target price for Cracker Barrel Old Country Store is USD 105.20 over the next 12 months. Cracker Barrel Old Country Store’s average analyst rating is Sell. Stock Target Advisor’s own stock analysis of Cracker Barrel Old Country Store is Slightly Bearish, which is based on 6 positive signals and 8 negative signals. At the last closing, Cracker Barrel Old Country Store’s stock price was USD 102.12Cracker Barrel Old Country Store’s stock price has changed by -0.69% over the past week, -12.59% over the past month and -35.03% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

 

 

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