Biglari Holdings (BH) AI Stock Analysis

• Market Cap: $644.34M
• Dividend Yield: N/A
• Average Volume (3M): 5.39K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.54
• Revenue Growth: -0.88%
• EPS Growth: -106.84%
• Country: US
• Employees: 2,535
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Restaurants
• EPS (TTM): -1.21
• Shares Outstanding: 2,068,640
• 10 Day Avg. Volume: 5,978
• 30 Day Avg. Volume: 5,389
• PEG Ratio: 0.10
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.85
• Price to Cash Flow (P/CF): 34.50
• P/FCF Ratio: 48.80
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Biglari Holdings' stock faces significant challenges, particularly in terms of profitability and valuation. The company's stable asset base provides some support, but inconsistent income and cash flow, along with recent net losses, weigh heavily on the overall score. Technical indicators are neutral, but the lack of positive financial performance keeps the stock's potential limited.

Biglari Holdings Business Overview & Revenue Model

Company Description

Biglari Holdings Inc., through its subsidiaries, primarily operates and franchises restaurants in the United States. It owns, operates, and franchises restaurants under the Steak n Shake and Western Sizzlin names. As of December 31, 2021, it operated 199 Steak n Shake company-operated restaurants, 159 franchise partner units, and 178 traditional franchise units, as well as 3 Western Sizzlin company-operated restaurants and 38 franchised units. The company also engages in underwriting commercial trucking insurance; selling physical damage and non-trucking liability insurance to truckers; and providing property and casualty insurance. In addition, it operates oil and natural gas properties in the Gulf of Mexico; and publishes and sells magazines and related publishing products under the MAXIM brand name. Further, it licenses media products and services; and engages in the investment activities. The company was formerly known as The Steak n Shake Company and changed its name to Biglari Holdings Inc. in April 2010. Biglari Holdings Inc. was founded in 1934 and is based in San Antonio, Texas.

How the Company Makes Money

Biglari Holdings makes money through a multi-faceted revenue model. The company generates income from its restaurant operations by owning and franchising Steak 'n Shake and Western Sizzlin locations, earning from both direct sales and franchise fees. Additionally, Biglari Holdings derives revenue from its investment management activities through its subsidiary, Biglari Capital Corp., which manages investments and earns management fees and investment returns. The company's insurance business, operated through subsidiaries like First Guard Insurance Company, contributes to earnings by underwriting commercial trucking insurance policies and earning premiums. These diverse revenue streams are complemented by strategic investments and capital allocation decisions made to enhance shareholder value.

Biglari Holdings Financial Statement Overview

Summary

Biglari Holdings demonstrates moderate financial health with a stable balance sheet, but faces challenges in income consistency and cash flow volatility. The company has a strong asset base, but profitability and cash management need improvement.

Income Statement

Biglari Holdings has seen fluctuating revenue with a decline from 2019 to 2023, and a subsequent slight recovery in 2024. The gross profit margin is strong, but the net profit margin has been inconsistent, with a significant loss in 2024. There is low EBIT margin volatility, with recent results indicating improvement. The EBITDA margin shows a similar pattern, pointing to operational challenges yet some recovery.

Balance Sheet

The company maintains a high equity ratio, indicating a strong asset base relative to liabilities. The debt-to-equity ratio has improved, suggesting better leverage management. However, ROE has been inconsistent, affected by fluctuating net income, indicating challenges in generating returns for shareholders.

Cash Flow

Operating cash flow remains positive, showing resilience in cash-generating ability despite net income fluctuations. Free cash flow has seen volatility but generally remains positive, indicating some stability. However, the free cash flow growth rate suffered, reflecting operational and capital expenditure challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
362.11M	365.32M	368.23M	366.11M	433.68M
	Gross Profit
138.62M	116.38M	152.78M	142.78M	136.95M
	EBIT
-771.00K	39.38M	-30.22M	47.66M	-14.66M
	EBITDA
37.82M	109.62M	-692.00K	79.48M	-2.44M
	Net Income Common Stockholders
-3.76M	54.95M	-32.30M	35.48M	-37.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
30.71M	119.94M	106.93M	125.41M	119.36M
	Total Assets
866.13M	849.42M	828.47M	894.81M	1.02B
	Total Debt
59.45M	101.24M	118.83M	121.38M	281.27M
	Net Debt
28.74M	73.18M	81.36M	79.03M	256.77M
	Total Liabilities
293.17M	250.09M	272.91M	307.11M	453.14M
	Stockholders Equity
866.13M	599.33M	546.97M	587.70M	564.83M
Cash Flow		Free Cash Flow
19.07M	49.60M	98.08M	164.22M	96.85M
	Operating Cash Flow
49.66M	73.00M	127.83M	228.77M	117.56M
	Investing Cash Flow
-87.39M	-66.08M	-136.60M	-58.52M	-129.49M
	Financing Cash Flow
39.48M	-16.13M	3.86M	-156.16M	-29.11M

Biglari Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 209.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BH, the sentiment is Negative. The current price of 209.68 is below the 20-day moving average (MA) of 212.82, below the 50-day MA of 224.34, and above the 200-day MA of 203.31, indicating a neutral trend. The MACD of -3.73 indicates Negative momentum. The RSI at 44.95 is Neutral, neither overbought nor oversold. The STOCH value of 43.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BH.

Biglari Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BJRI	67 Neutral	$724.94M	46.80	4.54%	―	1.81%	-15.53%
Sector *	59 Neutral	$11.48B	10.33	-0.21%	4.02%	1.19%	-15.83%
CBRL	57 Neutral	$912.13M	25.57	7.80%	5.00%	2.26%	-56.99%
BH	53 Neutral	$644.34M	14.87	-0.64%	―	-0.88%	-106.84%
JACK	46 Neutral	$466.37M	―	4.15%	7.12%	-6.02%	-136.86%
KRUS	42 Neutral	$595.33M	―	-5.38%	―	21.37%	-705.26%
BLMN	36 Underperform	$598.76M	―	-13.92%	12.34%	-7.42%	-153.35%

Biglari Holdings Corporate Events

Biglari Holdings Reports 2024 Financial Results with Net Loss

Biglari Holdings Inc. reported its financial results for the fourth quarter and full year of 2024, highlighting a net loss attributable to shareholders for both periods. The company emphasizes that investment gains and losses significantly impact reported earnings, and suggests analyzing operating businesses separately from these fluctuations.