Franchise Group Stock Fair Value Calculator – FRANCHISE GROUP Reports Record Earnings for Q2 FY 2023
August 13, 2023
🌥️Earnings Overview
FRANCHISE GROUP ($NASDAQ:FRG) reported a total revenue of USD 1038.7 million for the second quarter of the fiscal year 2023, ending on June 30 2023, representing a 5.1% decrease compared to the same quarter of the previous year. Net income for the quarter was a loss of USD -50.8 million, a contrast to the profit of USD 41.0 million in the same quarter of the prior year.
Price History
On Tuesday, FRANCHISE GROUP reported record-breaking earnings for the second quarter of FY 2023. The company’s stock opened at $29.7 and closed at $29.8, up by 0.3% from its previous closing price of 29.7. This marks a significant milestone for the company, indicating a strong increase in revenue and profitability in this quarter. The company is renowned for its franchising business model, which has enabled it to expand across a wide range of sectors and markets. This business model has allowed the company to create value for its stakeholders and customers alike. FRANCHISE GROUP has also seen an increase in its customer base and satisfaction levels, as well as a rise in its brand recognition over the last few years.
The company’s management is pleased with the results and has attributed these earnings to its commitment to innovation and quality product offerings. It has also attributed the increase in profits to the successful execution of its business strategies, and its focus on strengthening its global presence and expanding its operations. Overall, FRANCHISE GROUP is very pleased with its record-breaking performance this quarter, and is optimistic about the future growth prospects of the company. The company is committed to continuing to provide high-quality services and products to its customers, as well as to expand into new markets and build on its strong global presence. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Franchise Group. More…
| Total Revenues | Net Income | Net Margin |
| 4.31k | -289.5 | -3.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Franchise Group. More…
| Operations | Investing | Financing |
| 51.89 | -29.28 | -11.39 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Franchise Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.57k | 3.35k | 6.41 |
Key Ratios Snapshot
Some of the financial key ratios for Franchise Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 197.8% | 161.8% | 0.0% |
| FCF Margin | ROE | ROA |
| -0.2% | 0.3% | 0.0% |
Analysis – Franchise Group Stock Fair Value Calculator
We at GoodWhale recently conducted an analysis of the wellbeing of FRANCHISE GROUP. After running our proprietary Valuation Line, we have concluded that the intrinsic value of FRANCHISE GROUP shares is around $50.2. Currently, FRANCHISE GROUP stock is being traded at $29.8, which is a significant 40.6% lower than the intrinsic value. This discrepancy presents an attractive opportunity for potential investors. More…
Peers
The company has been in business for over 50 years and has a large customer base. The company’s main competitors are H&R Block Inc, Destination Maternity Corp, and Service Corp International. These companies are all large, well-established companies with a long history in the tax preparation and financial services industry.
– H&R Block Inc ($NYSE:HRB)
H&R Block Inc is a financial services company that provides tax preparation and other related services to individuals and businesses. The company has a market cap of 6.18B as of 2022 and a return on equity of -1678.27%. The company operates in the US and Canada and has a network of retail locations, online and mobile services, and franchise operations.
– Destination Maternity Corp ($OTCPK:DESTQ)
Destination Maternity is a designer and retailer of maternity apparel, with over 1,000 locations across the United States. The company has a market cap of 106.69k as of 2022 and a Return on Equity of -23.76%. Destination Maternity is a publicly traded company on the NASDAQ under the ticker symbol DEST.
– Service Corp International ($NYSE:SCI)
Service Corp International is a publicly traded company with a market capitalization of over $10 billion as of early 2021. The company provides a variety of funeral and cemetery services through its subsidiaries. It is the largest provider of these services in North America and has a strong international presence as well. Service Corp International has a return on equity of over 37%, meaning that it generates a significant amount of profit relative to the amount of shareholder equity. The company has been in business for over 50 years and is headquartered in Houston, Texas.
Summary
FRANCHISE GROUP experienced a 5.1% decline in total revenue for the second quarter of fiscal year 2023, compared to the same quarter of the previous year. The reported net income was a loss of USD -50.8 million, in contrast to a profit of USD 41.0 million in the same quarter of the prior year. Investors should pay attention to the company’s performance and financial health, as well as changes in their products and services, in order to make informed decisions. It is also important to determine whether the company’s current strategy is effective in restoring profitability and how it is positioning itself in light of its current financials and market conditions.
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