Biglari Holdings (BH) AI Stock Analysis

• Market Cap: $1.00B
• Dividend Yield: N/A
• Average Volume (3M): 21.40K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 0.46
• Revenue Growth: 4.14%
• EPS Growth: N/A
• Country: US
• Employees: 2,535
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 16.41
• Shares Outstanding: 2,068,640
• 10 Day Avg. Volume: 15,578
• 30 Day Avg. Volume: 21,401
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 6.70
• Enterprise Value/Ebitda: 9.11
• 1Y Price Target: $305.00
• Price Target Upside: -6.79% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: $305.00 ▼(-6.79% Downside)

Biglari Holdings' overall stock score is driven primarily by its stable financial performance, particularly strong cash flow generation and a solid balance sheet. However, the lack of technical analysis data and the absence of a dividend yield slightly dampen the overall attractiveness. The moderate P/E ratio indicates a fair valuation, but limited revenue growth and ROE suggest areas for potential improvement.

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 generates revenue primarily through its restaurant operations and insurance services. The company earns a significant portion of its revenue from the Steak 'n Shake franchise, which includes both company-owned and franchised locations. Revenue is driven by food and beverage sales, as well as royalties from franchisees. In addition, First Guard Insurance Company contributes to the company's earnings by providing various insurance products, including auto and commercial insurance, which generates premium income. The company also benefits from investment income and capital gains through its investment portfolio, allowing it to diversify its revenue streams. Strategic partnerships and a focus on operational improvements further enhance its financial performance.

Biglari Holdings Financial Statement Overview

Summary

Biglari Holdings presents a stable financial profile with strengths in profitability and cash flow generation. The income statement shows decent margins, though revenue growth is limited. The balance sheet is strong, with low leverage and a solid equity base. Cash flow performance is a highlight, with substantial free cash flow growth. While the company is financially sound, focusing on revenue growth and improving ROE could drive further value.

Income Statement

Biglari Holdings shows a moderate performance in its income statement. The TTM data indicates a gross profit margin of 35.41% and a net profit margin of 10.47%, reflecting decent profitability. However, the revenue growth rate is low at 2.58%, suggesting limited top-line expansion. The EBIT and EBITDA margins are healthy at 15.12% and 26.04%, respectively, indicating efficient operations. Overall, while profitability is stable, growth remains a concern.

Balance Sheet

The balance sheet of Biglari Holdings is relatively strong, with a low debt-to-equity ratio of 0.21, indicating conservative leverage. The return on equity is modest at 6.86%, showing moderate efficiency in generating returns on shareholders' equity. The equity ratio stands at 68.24%, suggesting a solid capital structure with a significant portion of assets financed by equity. The company maintains a stable financial position, though improvements in ROE could enhance shareholder value.

Cash Flow

Biglari Holdings demonstrates robust cash flow performance. The free cash flow growth rate is exceptionally high at 379.77%, indicating significant improvement in cash generation. The operating cash flow to net income ratio is 0.69, and the free cash flow to net income ratio is 0.72, reflecting strong cash conversion. This solid cash flow position provides flexibility for reinvestment and debt servicing, enhancing financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	377.18M	362.11M	365.32M	368.23M	366.11M	433.68M
Gross Profit	133.56M	138.62M	116.38M	152.78M	142.78M	136.95M
EBITDA	98.23M	37.82M	109.62M	-692.00K	79.48M	-2.44M
Net Income	39.51M	-3.76M	54.95M	-32.02M	35.48M	-37.99M
Balance Sheet
Total Assets	863.58M	866.13M	849.42M	828.47M	894.81M	1.02B
Cash, Cash Equivalents and Short-Term Investments	137.31M	133.68M	119.94M	106.93M	125.41M	119.36M
Total Debt	125.44M	150.19M	101.24M	118.83M	121.38M	281.27M
Total Liabilities	274.29M	293.17M	250.09M	272.91M	307.11M	453.14M
Stockholders Equity	589.29M	572.96M	599.33M	546.97M	587.70M	564.83M
Cash Flow
Free Cash Flow	62.52M	19.07M	49.60M	98.08M	164.22M	96.85M
Operating Cash Flow	86.69M	49.66M	73.00M	127.83M	228.77M	117.56M
Investing Cash Flow	-94.96M	-87.39M	-66.08M	-136.60M	-58.52M	-129.49M
Financing Cash Flow	13.40M	39.48M	-16.13M	3.86M	-156.16M	-29.11M

Biglari Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 327.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BH, the sentiment is Positive. The current price of 327.21 is above the 20-day moving average (MA) of 312.65, above the 50-day MA of 306.99, and above the 200-day MA of 257.69, indicating a bullish trend. The MACD of 4.27 indicates Negative momentum. The RSI at 64.27 is Neutral, neither overbought nor oversold. The STOCH value of 86.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BH.

Biglari Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEN	63 Neutral	$1.76B	9.61	170.14%	8.47%	1.31%	-1.46%
FWRG	63 Neutral	$976.38M	244.65	3.18%	―	14.53%	-83.26%
BH	63 Neutral	$1.00B	25.70	6.82%	―	4.14%	―
PZZA	60 Neutral	$1.54B	20.71	-17.38%	3.91%	-1.46%	8.10%
CBRL	58 Neutral	$1.01B	22.04	10.05%	2.20%	0.37%	12.99%
VENU	52 Neutral	$555.03M	-12.29	-31.70%	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.