Post by ross on Apr 12, 2015 13:02:03 GMT
First, a little information about the company:
Noble Roman’s is a pizza chain owning the franchises Noble Roman’s and Tuscano’s Subs.
Financials: net income from continuing operations in 2014 was $2.85 million, or $0.14 EPS. The share price is now 2.38.
Total revenue was 7.92 million (+5.2% y-o-y).
Business segments fourth Quarter 2014:
- Royalties and fees from non-traditional franchises other than grocery stores $993,000 (-0.7% y-o-y)
- Royalties and fees from grocery store take-n-bake locations $340,000 (32.2 %)
- Royalties and fees from stand-alone take-n-bake locations $ 234,000 (60.5%)
- Royalties and fees from traditional locations were $67,000 (-9%).
Growth focus:
1. Non-traditional franchises/licenses other than grocery stores
2. Take-n-bake pizzas through grocery deli departments
3. Stand-alone take-n-bake franchised locations.
The company is in the process of stocking six new grocery distribution centers. Four of them are very large. Also, the company are in ongoing discussions with several large grocery store chains to add their license take-n-bake to thousands of grocery stores.
Insider ownership:
So far this year, insiders have bought shares and owns a significant stake in the company.
Value:
At a P/E below 20. I think NROM is a bargain.
Technical analysis:
Strong volume up week and strong trend. Weekly charts from stockcharts.com
stockcharts.com/h-sc/ui?s=NROMhttp://stockcharts.com/h-sc/ui?s=NROM