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Noble Roman's Inc (NROM)
OTHER OTC:NROM
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Noble Roman's
(OTC:NROM)
Rating:67Neutral
Price Target:―
Noble Roman's (NROM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.44M
Dividend YieldN/A
Average Volume (3M)16.77K
Price to Earnings (P/E)24.4
Beta (1Y)0.80
Revenue Growth2.90%
EPS Growth-42.06%
CountryUS
Employees36
SectorConsumer Cyclical
Sector Strength61
IndustryRestaurants
Share Statistics
EPS (TTM)N/A
Shares Outstanding22,215,511
10 Day Avg. Volume4,973
30 Day Avg. Volume16,770
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)1.46
Price to Sales (P/S)0.00
P/FCF Ratio9.37
Enterprise Value/Market Cap4.71
Enterprise Value/Revenue0.36
Enterprise Value/Gross Profit4.88
Enterprise Value/Ebitda1.81
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Noble Roman's Business Overview & Revenue Model
Company DescriptionNoble Roman's, Inc. is a company that operates and franchises a chain of pizza-focused restaurants. The company is primarily involved in the foodservice industry, offering a variety of pizza and related menu items. Noble Roman's focuses on delivering quality pizza products through various formats, including standalone restaurants, non-traditional locations such as convenience stores, entertainment venues, and other foodservice operations.
How the Company Makes MoneyNoble Roman's generates revenue through several key streams. The primary source of income is from its franchising operations, where it collects franchise fees and royalties from franchisees operating under the Noble Roman's brand. Additionally, the company earns revenue from direct sales in its company-owned restaurants. Another significant revenue stream is through the supply of proprietary ingredients and equipment to franchisees and licensees, ensuring consistency in product quality across all locations. Partnerships with various non-traditional venues, such as convenience stores and entertainment centers, also contribute to its revenue by expanding its market presence and customer base.
Noble Roman's Earnings Call Summary
Earnings Call Date:Jun 26, 2025
(Q1-2025)
| % Change Since: 11.11%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable achievements in sales and expansion efforts, particularly in nontraditional venues and same-store sales growth. However, significant challenges were highlighted, including delays in financial reporting, cheese price volatility, and a downturn in consumer confidence, necessitating strategic adjustments.Q1-2025 Updates
Positive Updates
Increase in Same-Store Sales
Craft Pizza & Pubs experienced a same-store sales increase of 2.9% in Q4 2024 and 1.2% in Q1 2025 despite adverse weather conditions and reduced consumer spending.
Nontraditional Venue Expansion
Opened 68 new nontraditional venues in 2024, with plans to open 60 to 70 new units in 2025. This expansion contributed to a franchising revenue increase of 18.8%, or slightly over $1 million when one-time adjustments are factored in.
Successful Refinancing Progress
Progress in refinancing discussions to replace the Corbel credit line, with 27 statements of interest from potential investors and high confidence in placing the loan.
Improved Cost Management
Controlled variable costs, strategic improvements in labor costs, and negotiated some price increases, despite inflationary pressures.
Negative Updates
Challenges with Reporting and Accounting
Delays in financial reporting due to issues with the auditing firm, risking potential SEC enforcement actions and delisting.
Cheese Price Volatility
Cheese prices, accounting for 50% of pizza cost, have been volatile, with recent elevations after a short period of lower prices.
Downturn in Consumer Confidence
Consumer confidence has dropped to its lowest level since the pandemic, impacting promotional strategies and sales.
Company Guidance
During the call, Noble Roman's provided guidance on several metrics and operational updates. The Craft Pizza & Pubs same-store sales grew by 2.9% in Q4 2024 and 1.2% in Q1 2025, despite challenging weather conditions and consumer spending downturns. Notably, April and May saw a combined same-store sales increase of approximately 6%. The company opened 68 new nontraditional venues in 2024, with expectations to open 60 to 70 more in 2025. Franchising revenue increased by $876,000 or 18.8%, and after adjusting for onetime changes, it would have been over $1 million, marking a 22% rise. Operating costs for Craft Pizza & Pubs rose by 1.5 percentage points in 2024, with food costs pressured by value-oriented marketing and fluctuating cheese prices. The refinancing process for the Corbel credit line is ongoing, with $6.5 million remaining to refinance. However, no specific earnings guidance was provided.Noble Roman's Financial Statement Overview
Summary
Noble Roman's demonstrates strong financial health with solid profitability improvements, notably in profit margins and cash flow metrics. However, the high debt-to-equity ratio poses a risk if not managed carefully. Overall, the company is on a positive trajectory due to effective cost management and strong cash generation.Income Statement
Noble Roman's shows solid profitability with a significant improvement in both gross profit margin and net profit margin from the previous years. The gross profit margin for 2023 is 35.89%, and the net profit margin stands at 10.15%, a substantial recovery from a negative margin in 2022. Revenue growth is stable, although slightly declining by 0.55% from 2022. The EBIT and EBITDA margins are strong at 25.10% and 27.75%, respectively, indicating effective cost management.78
Positive
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio of 5.88, indicating a leveraged position which might pose risks if not managed carefully. However, the company has improved its equity position from the previous year, with an equity growth of 17.38%. Return on equity is strong at 66.65%, showcasing efficient use of shareholder funds. The equity ratio remains low at 11.85%, suggesting limited equity relative to total assets.65
Positive
Cash Flow
Cash flow is robust with a substantial improvement in free cash flow from negative values in prior years to a positive $1,582,376 in 2023. The operating cash flow to net income ratio is healthy at 1.07, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also positive at 1.08, further supporting the liquidity position.82
Very Positive
| Breakdown | TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.78M | 14.37M | 14.45M | 13.88M | 11.54M | 11.70M |
| Gross Profit | 4.29M | 5.54M | 3.05M | 4.38M | 4.41M | 4.74M |
| EBITDA | 2.48M | 3.58M | 878.27K | 3.07M | -1.15M | 1.78M |
| Net Income | 275.62K | 1.46M | -1.06M | 509.46K | -5.38M | -378.06K |
Balance Sheet | ||||||
| Total Assets | 16.85M | 18.48M | 18.34M | 19.38M | 18.42M | 19.11M |
| Cash, Cash Equivalents and Short-Term Investments | 551.48K | 872.34K | 785.52K | 1.26M | 1.19M | 218.13K |
| Total Debt | 11.91M | 12.89M | 14.86M | 14.72M | 14.32M | 9.72M |
| Total Liabilities | 14.48M | 16.29M | 16.48M | 16.48M | 16.06M | 11.27M |
| Stockholders Equity | 2.37M | 2.19M | 1.87M | 2.89M | 2.36M | 7.83M |
Cash Flow | ||||||
| Free Cash Flow | 985.83K | 1.57M | -477.99K | 69.15K | -408.96K | 1.22M |
| Operating Cash Flow | 1.01M | 1.57M | 29.58K | 1.52M | 1.68M | 1.51M |
| Investing Cash Flow | -23.65K | 13.82K | -507.57K | -1.45M | -2.08M | -289.35K |
| Financing Cash Flow | -998.00K | -1.50M | 0.00 | 1.39B | 1.39M | -1.08M |
Noble Roman's Technical Analysis
Positive
0.20
Price Trends
0.20
Positive
0.26
Negative
0.31
Negative
Market Momentum
>-0.01
Negative
50.75
Neutral
32.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NROM, the sentiment is Positive. The current price of 0.2 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.20, and below the 200-day MA of 0.31, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.75 is Neutral, neither overbought nor oversold. The STOCH value of 32.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $40.79M | 15.39 | 21.75% | ― | 2.93% | 20.81% | |
69 Neutral | $15.48B | 25.92 | -14.74% | 1.54% | 4.28% | 13.76% | |
68 Neutral | $41.69B | 29.91 | -19.43% | 1.89% | 10.09% | -11.50% | |
68 Neutral | $9.13B | 54.90 | -16.09% | 0.33% | 30.98% | 112.65% | |
67 Neutral | $4.44M | 24.39 | 9.59% | ― | 2.90% | -42.06% | |
66 Neutral | £1.86B | 11.27 | 6.18% | 3.11% | 0.61% | -17.57% | |
64 Neutral | $1.60B | 20.76 | -20.16% | 3.75% | -2.77% | 4.01% |
* Consumer Cyclical Sector Average
Performance Comparison
NROM
Noble Roman's
0.20
-0.22
-52.38%
DPZ
Domino's Pizza
452.18
-40.74
-8.27%
PZZA
Papa John's International
49.00
6.85
16.25%
RAVE
Rave Restaurant Group
2.87
0.99
52.66%
YUM
Yum! Brands
150.00
24.52
19.54%
WING
Wingstop
325.40
-79.64
-19.66%
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.