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Noble Roman's Inc (NROM)
OTHER OTC:NROM
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Noble Roman's
(OTC:NROM)
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Rating:71Outperform
Price Target:
$0.00
▼(-100.00% Downside)
Noble Roman's overall stock score is driven by strong earnings call performance and attractive valuation, indicating potential for future growth. However, financial performance is moderated by high leverage and low profitability, which pose risks. Technical indicators suggest stable momentum, supporting a positive outlook.
Noble Roman's (NROM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.00M
Dividend YieldN/A
Average Volume (3M)19.07K
Price to Earnings (P/E)8.8
Beta (1Y)0.58
Revenue Growth5.29%
EPS Growth122.43%
CountryUS
Employees36
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.01
Shares Outstanding22,215,511
10 Day Avg. Volume13,273
30 Day Avg. Volume19,075
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap3.80
Enterprise Value/Revenue0.99
Enterprise Value/Gross Profit3.21
Enterprise Value/Ebitda5.59
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
Noble Roman's Business Overview & Revenue Model
Company DescriptionNoble Roman's, Inc. sells and services franchises, and licenses and operates foodservice locations for stand-alone restaurants and non-traditional foodservice operations. The company franchises, licenses, and operates foodservice locations under the Noble Roman's Craft Pizza & Pub, Noble Roman's Pizza, Noble Roman's Take-N-Bake, and Tuscano's Italian Style Subs trade names, which provide breadsticks and cheesy stix with dip, pizza, pasta, salads, wings, baked sandwiches, and other related breakfast products, as well as a selection of desserts. As of December 31, 2021, it operated 3,069 franchised/licensed outlets. Noble Roman's, Inc. was incorporated in 1972 and is headquartered in Indianapolis, Indiana.
How the Company Makes MoneyNoble Roman's generates revenue through multiple streams, including the operation of its own restaurants, franchise fees from franchisees, and sales of grocery products featuring its brand. The company earns money from franchise agreements, which typically involve initial franchise fees and ongoing royalty payments based on sales. Additionally, Noble Roman's has developed partnerships with grocery retailers to sell its branded products, further diversifying its income sources. The company also benefits from the increasing trend of consumers seeking convenient dining options, which enhances its sales from both its restaurant operations and packaged goods.
Noble Roman's Earnings Call Summary
Earnings Call Date:Aug 21, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive quarter with notable improvements in income and revenue alongside strategic cost management. However, there are ongoing challenges with cost pressures, specifically cheese and labor, and administrative hurdles like the delayed IRS receivable and accounting firm issues.Q2-2025 Updates
Positive Updates
Significant Increase in Net Income Before Taxes
Net income before taxes was $490,000 for the quarter, compared to $56,000 in the same period last year.
Revenue Growth
Total revenue increased by 4.5% for the quarter compared to the previous year.
Improvement in Same-Store Sales
Same-store sales in the Craft Pizza & Pub were up 4.5%, outpacing competitors like Pizza Hut, which saw a decline of about 5%.
Increased Margins
Margins at the Craft Pizza & Pub increased to 13.6% from 11% a year ago.
EBITDA Growth
Trailing 12-month EBITDA increased from $3.06 million at the end of 2024 to $3.5 million at the end of Q2 2025.
Successful Cost Management
Administrative expenses were cut by over $300,000 in the first half of the year.
Cheese Price Relief Anticipated
Cheese prices, which had been a significant cost pressure, have recently declined, offering potential relief in the future.
Negative Updates
Cheese Cost Pressure
Cheese prices increased by about 9% over the previous year, impacting costs.
Labor Challenges
Labor pressures, particularly in salary management, remain a challenge due to ongoing high costs and difficulties in hiring quality management.
Moderated Nontraditional Unit Growth
While 30 nontraditional units were sold, the robust sales growth seen previously has not been repeated due to accounting adjustments and amortization of fees.
Delayed IRS Receivable
A $507,000 receivable from the IRS has been delayed, despite approval, impacting cash flow.
Accounting Firm Issues
Challenges in securing a new accounting firm have been noted, with a lack of available qualified firms at acceptable costs.
Company Guidance
During the earnings call for Noble Roman's, several key financial metrics and guidance were highlighted. The company reported a net income before taxes of $490,000 for the quarter, a significant increase from $56,000 in the previous year, while total revenue rose by 4.5%. Same-store sales in the Craft Pizza & Pub also grew by 4.5%, despite a challenging market, with margins for this segment increasing to 13.6%. The convenience store program segment saw a margin contribution rise of 8.7%, reaching $1.06 million, with its margin rate improving from 67.9% to 72.5%. The trailing 12-month EBITDA grew from $3.06 million at the end of 2024 to $3.5 million at the end of the second quarter of 2025. Despite some cost pressures, notably a 9% increase in cheese prices, the company is optimistic about future relief as cheese prices have recently declined. Additionally, the company is progressing with refinancing efforts and anticipates more updates soon. Administrative expenses were reduced by over $300,000 in the first half of the year, though this decrease may not be fully sustainable. The company remains confident in achieving its goal of 60 nontraditional units by year-end, having already sold about 30.Noble Roman's Financial Statement Overview
Summary
Noble Roman's shows stable revenue growth and improving cash flows, but profitability is pressured by fluctuating net income and high leverage. The company needs to enhance net profit margins and reduce debt for better financial stability.Income Statement
Noble Roman's has shown stable revenue growth, with a recent increase from previous periods. The gross profit margin has been consistent, contributing to a reasonable EBIT and EBITDA margin. However, the net profit margin remains a concern due to historical fluctuations in net income. The TTM data indicates a slight improvement in profitability metrics.72
Positive
Balance Sheet
The company's balance sheet shows a high level of debt relative to equity, resulting in a high debt-to-equity ratio. While there is a positive equity ratio, the Return on Equity (ROE) remains low, indicating potential inefficiencies in generating profits from shareholders' investments. The overall leverage poses a risk to financial stability.58
Neutral
Cash Flow
Cash flow from operations is positive, and free cash flow has shown improvement, indicating better cash management and operational efficiency. However, the free cash flow growth rate has been inconsistent. The cash flow ratios suggest that cash generation is not yet fully aligned with net income levels, but there are positive trends in operational cash flow.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.42M | 15.15M | 14.37M | 14.45M | 13.88M | 11.54M |
| Gross Profit | 4.73M | 4.65M | 5.54M | 3.05M | 4.38M | 4.41M |
| EBITDA | 2.72M | 1.98M | 3.58M | 878.27K | 3.07M | -1.15M |
| Net Income | 527.96K | -3.17K | 1.46M | -1.06M | 509.46K | -5.38M |
Balance Sheet | ||||||
| Total Assets | 16.23M | 16.77M | 18.48M | 18.34M | 19.38M | 18.42M |
| Cash, Cash Equivalents and Short-Term Investments | 635.63K | 710.23K | 872.34K | 785.52K | 1.26M | 1.19M |
| Total Debt | 10.71M | 11.57M | 12.89M | 14.86M | 14.72M | 14.32M |
| Total Liabilities | 13.49M | 14.55M | 16.29M | 16.48M | 16.48M | 16.06M |
| Stockholders Equity | 2.74M | 2.22M | 2.19M | 1.87M | 2.89M | 2.36M |
Cash Flow | ||||||
| Free Cash Flow | 872.22K | 808.66K | 1.57M | -477.99K | 69.15K | -408.96K |
| Operating Cash Flow | 979.64K | 896.97K | 1.57M | 29.58K | 1.52M | 1.68M |
| Investing Cash Flow | -107.42K | -88.30K | 13.82K | -507.57K | -1.45M | -2.08M |
| Financing Cash Flow | -954.29K | -887.41K | -1.50M | 0.00 | 1.39B | 1.39M |
Noble Roman's Technical Analysis
Negative
0.18
Price Trends
0.18
Negative
0.19
Negative
0.27
Negative
Market Momentum
<0.01
Positive
46.97
Neutral
14.80
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NROM, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.18, and below the 200-day MA of 0.27, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.97 is Neutral, neither overbought nor oversold. The STOCH value of 14.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NROM.
Noble Roman's Risk Analysis
Noble Roman's disclosed 12 risk factors in its most recent earnings report. Noble Roman's reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Noble Roman's Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | 50.74M | 19.14 | 0.00% | ― | 2.93% | 20.81% | |
71 Outperform | $4.00M | 8.78 | 21.53% | ― | 5.29% | 122.43% | |
56 Neutral | 16.64M | 28.05 | 4.10% | ― | 21.45% | 0.00% | |
54 Neutral | 9.92M | -4.97 | -30.52% | ― | 1.59% | -85.85% | |
52 Neutral | 16.98M | 13.75 | 3.80% | ― | 1.84% | 12.10% | |
41 Neutral | 25.10M | -1.79 | -40.40% | ― | -6.89% | -42.75% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
NROM
Noble Roman's
0.18
-0.20
-52.63%
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6.96
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1.61
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RAVE
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3.57
1.80
101.69%
BTBD
BT Brands
1.67
0.20
13.61%
CHSN
Chanson International Holding Class A
2.71
-205.29
-98.70%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.