Noble Roman's, Inc. (NROM)
Consumer Cyclical · OQB
Fundamentals
Valuation and ratings
Noble Roman's, Inc. trades at USD0.67, which is 119% below the USD1.47 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 40 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 16.8 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Noble Roman's, Inc.
Noble Roman's, Inc., together with its subsidiaries, sells and services franchises in the United States. It also licenses and operates company-owned stand-alone restaurants and non-traditional foodservice operations under the Noble Roman's Craft Pizza & Pub, Noble Roman's Pizza, Noble Roman's Take-N-Bake, and Tuscano's Italian Style Subs brand names. The company was incorporated in 1972 and is headquartered in Indianapolis, Indiana.
NROM passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Noble Roman's, Inc. (NROM) undervalued?
Against our discounted cash flow estimate of USD1.47, NROM at USD0.67 is 119% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is NROM's P/E ratio?
NROM trades at 16.8 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.