Retail Food Group (RFG) AI Stock Analysis

• Market Cap: AU$123.97M
• Dividend Yield: N/A
• Average Volume (3M): 107.56K
• Price to Earnings (P/E): 13.6
• Beta (1Y): <0.01
• Revenue Growth: 21.87%
• EPS Growth: N/A
• Country: AU
• Employees: 59
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Restaurants
• EPS (TTM): 0.08
• Shares Outstanding: 62,930,790
• 10 Day Avg. Volume: 102,134
• 30 Day Avg. Volume: 107,562
• PEG Ratio: 2.12
• Price to Book (P/B): 25.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.01K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$2.80
• Price Target Upside: 42.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: AU$2.00 ▲(2.04%Upside)

Retail Food Group shows promising recovery signs with strong revenue growth and improved margins. However, the stock faces challenges in profitability consistency and cash flow stability. The technical indicators suggest bullish momentum, and the valuation is reasonable with a moderate P/E ratio. Absence of dividend yield and lack of earnings call data somewhat limit the overall attractiveness.

Retail Food Group Business Overview & Revenue Model

Company Description

Retail Food Group Limited, a food and beverage company, engages in the management of a multi-brand retail food and beverage franchise in Australia and internationally. The company operates through four segments: Bakery/Café, QSR, Coffee Retail, and Di Bella Coffee. It is also involved in the ownership of the intellectual property; development and management of coffee roasting facilities; and the wholesale supply of coffee and allied products under the Di Bella Coffee brand. The company develops and manages Donut King, Brumby's Bakery, Michel's Patisserie, Esquires Coffee Houses, Pizza Capers Gourmet Kitchen, Crust Gourmet Pizza Bar, The Coffee Guy, Café2U, and Gloria Jean's Coffees. As of July 31, 2022, it had 840 outlets in Australia and 584 outlets across 54 licensed international territories in 41 countries. Retail Food Group Limited was founded in 1989 and is headquartered in Robina, Australia.

How the Company Makes Money

Retail Food Group generates revenue primarily through its franchising model, where it earns income from franchise fees, royalties, and sales of products to franchisees. The company charges upfront fees for granting franchise rights and ongoing royalties based on a percentage of franchisee sales. Additionally, RFG supplies ingredients, consumables, and equipment to its franchisees, creating another revenue stream. The company also operates some outlets directly, generating income from direct sales. Strategic partnerships and supply agreements further bolster RFG's earnings by expanding its product offerings and market reach.

Retail Food Group Financial Statement Overview

Summary

Retail Food Group is experiencing a recovery phase with noticeable improvements in revenue growth and gross profit margins. Despite these strengths, the company faces challenges in sustaining profitability and maintaining consistent cash flow stability. The balance sheet shows moderate leverage and a healthy equity base, but the ROE remains low. Overall, while there are positive trends, the company needs to focus on improving profitability and cash flow consistency to enhance financial stability.

Income Statement

Retail Food Group has shown improvement in revenue with a growth rate of 12.4% from 2023 to 2024, which is a positive indicator. Gross profit margin improved significantly to 71.8% in 2024, up from 48.8% in 2023. However, the company is struggling with profitability, as indicated by negative EBIT margins in recent years, although there was a positive turnaround in net income in 2024, showing a net profit margin of 4.6%.

Balance Sheet

The company's debt-to-equity ratio is 0.55 in 2024, which indicates a moderate level of leverage. The equity ratio stands at 56.4%, reflecting a healthy proportion of equity financing. Return on equity (ROE) is 2.8% in 2024, which shows slight improvement but remains low, indicating limited effectiveness in generating profit from shareholders' equity.

Cash Flow

Operating cash flow turned positive in 2024, showing a substantial recovery from negative figures in 2023, which is a good sign. The free cash flow to net income ratio is 1.78, indicating strong cash generation relative to net income. However, historical fluctuations in cash flow metrics suggest some instability in cash flow management.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	136.81M	125.18M	111.37M	102.58M	109.10M	126.40M
Gross Profit	76.14M	90.88M	54.38M	50.77M	52.19M	47.69M
EBITDA	24.90M	26.58M	1.42M	19.28M	24.52M	48.11M
Net Income	8.90M	5.79M	-8.95M	5.26M	1.46M	-3.99M
Balance Sheet
Total Assets	374.67M	368.74M	348.89M	350.08M	369.76M	437.50M
Cash, Cash Equivalents and Short-Term Investments	21.43M	20.64M	22.26M	29.22M	34.65M	40.25M
Total Debt	112.89M	113.62M	110.64M	128.42M	153.38M	177.66M
Total Liabilities	158.95M	160.73M	149.18M	166.30M	191.91M	261.41M
Stockholders Equity	215.71M	208.01M	199.71M	183.78M	177.86M	176.09M
Cash Flow
Free Cash Flow	13.05M	10.32M	-4.93M	12.34M	8.41M	-5.79M
Operating Cash Flow	18.06M	15.36M	-1.20M	15.43M	11.07M	-3.83M
Investing Cash Flow	-4.38M	-9.91M	-2.21M	-828.00K	1.88M	-279.00K
Financing Cash Flow	-13.23M	-7.09M	-3.61M	-20.24M	-18.43M	31.09M

Retail Food Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RFG, the sentiment is Neutral. The current price of 1.96 is above the 20-day moving average (MA) of 1.90, above the 50-day MA of 1.85, and below the 200-day MA of 2.24, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 55.54 is Neutral, neither overbought nor oversold. The STOCH value of 43.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:RFG.

Retail Food Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$16.67B	10.96	-6.97%	3.00%	1.72%	-24.21%
RFG	58 Neutral	AU$123.97M	13.64	4.31%	―	21.87%	―
CLLFF		$676.77M	95.18	2.40%	2.73%	―	―
DPZUF		$1.11B	115.62	2.09%	5.21%	―	―
36S		€1.81M	―		―	―	―
MTO	76 Outperform	AU$235.44M	13.85	8.49%	5.18%	3.76%	-26.42%
GYG	55 Neutral	AU$2.94B	―	-1.13%	―	26.77%	51.19%

Retail Food Group Corporate Events

Retail Food Group Issues Unquoted Service Rights to Employees

Retail Food Group Limited announced the issuance of 29,385 unquoted service rights under an employee incentive scheme, effective March 18, 2025. This move is part of the company’s strategy to incentivize employees, potentially impacting its operational efficiency and aligning staff interests with corporate goals.

Retail Food Group Issues Performance Rights to Employees

Retail Food Group Limited has announced the issuance of 47,945 performance rights as part of an employee incentive scheme. These unquoted securities are not intended to be listed on the ASX, reflecting the company’s strategy to incentivize and retain key personnel, which could enhance operational performance and stakeholder value.