Rave Restaurant Return On Equity vs. Number Of Shares Shorted

RAVE Stock  USD 3.01  0.12  3.83%   
Based on Rave Restaurant's profitability indicators, Rave Restaurant Group is performing exceptionally good at the present time. It has a great chance to showcase excellent profitability results in January. Profitability indicators assess Rave Restaurant's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.19469375
Current Value
0.18
Quarterly Volatility
0.68937076
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Rave Restaurant's EV To Sales is projected to increase slightly based on the last few years of reporting. The current year's Sales General And Administrative To Revenue is expected to grow to 0.46, whereas Days Sales Outstanding is forecasted to decline to 27.17. At present, Rave Restaurant's Net Income is projected to increase significantly based on the last few years of reporting. The current year's Net Income From Continuing Ops is expected to grow to about 4.7 M, whereas Total Other Income Expense Net is forecasted to decline to (69.3 K).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.730.6991
Sufficiently Up
Slightly volatile
Net Profit Margin0.210.2035
Sufficiently Up
Slightly volatile
Operating Profit Margin0.270.2599
Sufficiently Up
Slightly volatile
Return On Assets0.160.1563
Fairly Up
Very volatile
Return On Equity0.180.1947
Significantly Down
Slightly volatile
For Rave Restaurant profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rave Restaurant to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rave Restaurant Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rave Restaurant's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rave Restaurant Group over time as well as its relative position and ranking within its peers.
  

Rave Restaurant's Revenue Breakdown by Earning Segment

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Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Rave Restaurant. If investors know Rave will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Rave Restaurant listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.322
Earnings Share
0.18
Revenue Per Share
0.832
Quarterly Revenue Growth
(0.01)
Return On Assets
0.1224
The market value of Rave Restaurant Group is measured differently than its book value, which is the value of Rave that is recorded on the company's balance sheet. Investors also form their own opinion of Rave Restaurant's value that differs from its market value or its book value, called intrinsic value, which is Rave Restaurant's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Rave Restaurant's market value can be influenced by many factors that don't directly affect Rave Restaurant's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Rave Restaurant's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rave Restaurant is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rave Restaurant's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Rave Restaurant Group Number Of Shares Shorted vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Rave Restaurant's current stock value. Our valuation model uses many indicators to compare Rave Restaurant value to that of its competitors to determine the firm's financial worth.
Rave Restaurant Group is currently regarded as top stock in return on equity category among its peers. It is rated third in number of shares shorted category among its peers making about  326,098  of Number Of Shares Shorted per Return On Equity. At present, Rave Restaurant's Return On Equity is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Rave Restaurant by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Rave Number Of Shares Shorted vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Rave Restaurant

Return On Equity

 = 

Net Income

Total Equity

 = 
0.22
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.

Rave Restaurant

Shares Shorted

 = 

Shorted by Public

+

by Institutions

 = 
70.53 K
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.

Rave Number Of Shares Shorted Comparison

Rave Restaurant is currently under evaluation in number of shares shorted category among its peers.

Rave Restaurant Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Rave Restaurant, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Rave Restaurant will eventually generate negative long term returns. The profitability progress is the general direction of Rave Restaurant's change in net profit over the period of time. It can combine multiple indicators of Rave Restaurant, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income3.2 M1.7 M
Income Before Tax3.1 M3.2 M
Total Other Income Expense Net-66 K-69.3 K
Net Income2.5 M2.6 M
Income Tax Expense619 K385.7 K
Net Income Applicable To Common Shares1.9 M1.8 M
Net Income From Continuing Ops2.5 M4.7 M
Net Interest Income153 K160.7 K
Non Operating Income Net Other21.6 K42.2 K
Interest Income18.9 K19.7 K
Change To Netincome767.7 K555.7 K
Net Income Per Share 0.17  0.18 
Income Quality 1.11  1.03 
Net Income Per E B T 0.80  1.29 

Rave Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Rave Restaurant. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Rave Restaurant position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Rave Restaurant's important profitability drivers and their relationship over time.

Use Rave Restaurant in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Rave Restaurant position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Rave Restaurant will appreciate offsetting losses from the drop in the long position's value.

Rave Restaurant Pair Trading

Rave Restaurant Group Pair Trading Analysis

The ability to find closely correlated positions to Rave Restaurant could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Rave Restaurant when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Rave Restaurant - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Rave Restaurant Group to buy it.
The correlation of Rave Restaurant is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Rave Restaurant moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Rave Restaurant Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Rave Restaurant can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Rave Restaurant position

In addition to having Rave Restaurant in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Banks - Regional Thematic Idea Now

Banks - Regional
Banks - Regional Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Banks - Regional theme has 19 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Banks - Regional Theme or any other thematic opportunities.
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When determining whether Rave Restaurant Group is a strong investment it is important to analyze Rave Restaurant's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Rave Restaurant's future performance. For an informed investment choice regarding Rave Stock, refer to the following important reports:
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You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
To fully project Rave Restaurant's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Rave Restaurant Group at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Rave Restaurant's income statement, its balance sheet, and the statement of cash flows.
Potential Rave Restaurant investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Rave Restaurant investors may work on each financial statement separately, they are all related. The changes in Rave Restaurant's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Rave Restaurant's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.