Potbelly Return On Asset vs. Operating Margin

PBPB Stock  USD 10.26  0.08  0.77%   
Based on the key profitability measurements obtained from Potbelly's financial statements, Potbelly Co is performing exceptionally good at the present time. It has a great chance to showcase excellent profitability results in January. Profitability indicators assess Potbelly's ability to earn profits and add value for shareholders. At present, Potbelly's Price To Sales Ratio is projected to slightly decrease based on the last few years of reporting. The current year's EV To Sales is expected to grow to 1.19, whereas Days Sales Outstanding is forecasted to decline to 3.59. At present, Potbelly's Accumulated Other Comprehensive Income is projected to increase significantly based on the last few years of reporting. The current year's Operating Income is expected to grow to about 10.5 M, whereas Total Other Income Expense Net is forecasted to decline to (3.7 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.320.38
Fairly Down
Pretty Stable
For Potbelly profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Potbelly to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Potbelly Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Potbelly's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Potbelly Co over time as well as its relative position and ranking within its peers.
  
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Is Hotels, Restaurants & Leisure space 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 Potbelly. If investors know Potbelly 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 Potbelly 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
1.4
Earnings Share
1.25
Revenue Per Share
15.884
Quarterly Revenue Growth
(0.05)
Return On Assets
0.0372
The market value of Potbelly is measured differently than its book value, which is the value of Potbelly that is recorded on the company's balance sheet. Investors also form their own opinion of Potbelly's value that differs from its market value or its book value, called intrinsic value, which is Potbelly's 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 Potbelly's market value can be influenced by many factors that don't directly affect Potbelly's 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 Potbelly's value and its price as these two are different measures arrived at by different means. Investors typically determine if Potbelly is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Potbelly's 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.

Potbelly Operating Margin vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Potbelly's current stock value. Our valuation model uses many indicators to compare Potbelly value to that of its competitors to determine the firm's financial worth.
Potbelly Co is rated below average in return on asset category among its peers. It also is rated below average in operating margin category among its peers reporting about  1.08  of Operating Margin per Return On Asset. At present, Potbelly's Operating Profit Margin is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Potbelly's earnings, one of the primary drivers of an investment's value.

Potbelly Operating Margin vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Potbelly

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0372
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Potbelly

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.04 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Potbelly Operating Margin Comparison

Potbelly is currently under evaluation in operating margin category among its peers.

Potbelly Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Potbelly, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Potbelly will eventually generate negative long term returns. The profitability progress is the general direction of Potbelly's change in net profit over the period of time. It can combine multiple indicators of Potbelly, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income2.2 M2.3 M
Operating Income10 M10.5 M
Income Before Tax6.5 M6.8 M
Total Other Income Expense Net-3.5 M-3.7 M
Net Income5.6 M5.9 M
Income Tax Expense909 K571.9 K
Net Income Applicable To Common Shares3.9 M4.1 M
Net Income From Continuing Ops5.6 M5.9 M
Non Operating Income Net Other11.7 M12.3 M
Interest Income111.6 K138 K
Net Interest Income-2.8 M-2.7 M
Change To Netincome-6 M-5.7 M
Net Income Per Share 0.20  0.21 
Income Quality 3.14  3.30 
Net Income Per E B T 0.71  0.86 

Potbelly Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Potbelly. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Potbelly position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Potbelly's important profitability drivers and their relationship over time.

Use Potbelly in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Potbelly position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Potbelly will appreciate offsetting losses from the drop in the long position's value.

Potbelly Pair Trading

Potbelly Co Pair Trading Analysis

The ability to find closely correlated positions to Potbelly could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Potbelly when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Potbelly - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Potbelly Co to buy it.
The correlation of Potbelly is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Potbelly moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Potbelly moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Potbelly can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Potbelly position

In addition to having Potbelly 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.

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Trading
Trading Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Trading theme has 61 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 Trading Theme or any other thematic opportunities.
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When determining whether Potbelly offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Potbelly's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Potbelly Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Potbelly Co Stock:
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You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
To fully project Potbelly's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Potbelly at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Potbelly's income statement, its balance sheet, and the statement of cash flows.
Potential Potbelly investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Potbelly investors may work on each financial statement separately, they are all related. The changes in Potbelly's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Potbelly's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.