Dutch Bros Stock Fair Value Calculator – Dutch Bros Faces 50% Downside Risk from Current Levels, Warns Hedgeye Analyst Howard Penney
February 24, 2023
Trending News 🌧️
DUTCH ($NYSE:BROS): This is a very encouraging sign for the future of the company and its stockholders, as it suggests a strong show of confidence on the part of those who understand the business best. When executives, directors and other corporate insiders purchase stock in their own company, it often signals to investors that these people believe the company is undervalued and that its stock price has potential to rise in the near future. This type of insider investing is considered a positive sign for shareholders, as it gives an indication that the company is on the right track and should be considered a solid investment for them.
All in all, the fact that several insiders invested in JTC PLC last year is great news for shareholders, and a clear indication that the company is in good stead going forward. With insiders expressing such faith in their own company, shareholders can rest assured that their investments with JTC PLC are secure and they should experience increased returns in the future.
Share Price
Recent news reports have suggested that JTC PLC’s stock price is showing some strong signs of positive momentum. On Thursday, the company’s stock opened and closed at £7.4, representing a 0.8% increase from the previous closing price. To further add to this momentum, it was recently reported that insider investors in JTC PLC had increased their stake in the company last year. This is a positive sign for JTC PLC’s shareholders, as it suggests confidence in the company’s recent performance and potential to continue with further growth.
The fact that insiders have decided to increase their holdings in JTC PLC is indicative of their belief that the stock has positive prospects for the future and may represent a good investment opportunity. Furthermore, the general media sentiment surrounding the stock appears to be quite positive, with many analysts predicting further increases in value for the company in the coming months. All in all, the news of increased holding by insiders coupled with the largely positive media sentiment make for a promising outlook for JTC PLC, and should give its shareholders confidence in the stock’s future performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dutch Bros. More…
| Total Revenues | Net Income | Net Margin |
| 677.26 | -5.93 | -1.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dutch Bros. More…
| Operations | Investing | Financing |
| 50.84 | -183.72 | 141.58 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dutch Bros. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.13k | 885.46 | 2.17 |
Key Ratios Snapshot
Some of the financial key ratios for Dutch Bros are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -2.6% |
| FCF Margin | ROE | ROA |
| -18.9% | -9.2% | -1.0% |
Analysis – Dutch Bros Stock Fair Value Calculator
At GoodWhale, we have conducted a fundamental analysis of JTC PLC and calculated a fair value of its share around £7.2. This was accomplished using our proprietary Valuation Line. Currently, the stock of JTC PLC is traded at £7.4, which is a fair price yet slightly overvalued by 3.4%. More…
Summary
Analysis of JTC PLC’s stock last year showed positive signs for shareholders, as insiders invested in the company. So far, media sentiment on JTC PLC has been largely positive. The company has seen an increase in its stock price and market share, as well as an increase in analyst ratings.
This is a sign that investors have responded positively to the company’s business strategy and performance. With the continued support from its shareholders, JTC PLC is likely to continue its successful trajectory for the foreseeable future.
Trending News 🌧️
Hedgeye analyst Howard Penney recently expressed concern about the potential risk for Dutch Bros Inc. shares, which were currently trading at all-time highs. Penney warned that the stock may have the potential for 50% downside from current levels as the company focuses more on rapidly expanding its unit count, rather than improving its profitability. He believes this strategy could lead to long-term issues for the company, as it may take away from its capacity to manage expenses and erode its cash flow. Penney noted that Dutch Bros’ rapid unit expansion could ultimately result in a saturation of its markets and a diminishing returns model. This could cause the company to struggle to be able to grow its revenues and profits, placing the company at a disadvantage compared to other companies in the space.
He also pointed out that the company has seen its new units become less profitable over time. The analyst’s prediction indicates that investors should be wary of Dutch Bros’ current stock level and take into account the potential downside risk that could come with investing in the company. He recommends investors maintain a cautious attitude and do their own research before making any investment decisions.
Price History
This alert came as the stock opened at $35.1 and closed at $34.0, a 10.4% plunge from its previous closing price of $38.0. Penney went on to argue that the stock is vulnerable to a significant decline due to its unusually high valuations and an unfavorable risk-reward profile. He noted that investors should consider exiting the stock or establishing an appropriate risk-adjusted position should the company hit his target price. Live Quote…
Analysis – Dutch Bros Stock Fair Value Calculator
We at GoodWhale recently conducted an analysis of DUTCH BROS‘s wellbeing. Our proprietary Valuation Line was used to calculate the intrinsic value of DUTCH BROS share, which comes out to be around $44.4. It’s interesting to note that DUTCH BROS stock is currently being traded at $34.0. This leads us to the conclusion that DUTCH BROS stock is undervalued by 23.5%. From our analysis, it is clear that there are potential opportunities in DUTCH BROS’s stock market. More…
Peers
If you’re in the mood for a delicious milkshake, you may be wondering where to go. Two popular options are Dutch Bros Inc and Shake Shack Inc. Both companies offer a variety of flavors and toppings to choose from.
However, Shake Shack is often pricier than Dutch Bros. Another option is Williston Holding Co, which offers a wider range of food items, including milkshakes. Finally, Doutor Nichires Holdings Co Ltd is a popular choice in Japan for those looking for a delicious milkshake.
– Shake Shack Inc ($NYSE:SHAK)
Founded in 2004, Shake Shack is a modern day “roadside” burger stand serving a classic American menu of burgers, hot dogs, shakes, and more. The company has grown to operate over 200 locations across the globe, including in the United States, United Kingdom, Turkey, Russia, and more. Despite its impressive growth, Shake Shack’s market cap is a relatively modest 1.87 billion as of 2022. This is likely due to the company’s negative return on equity (-3.84%) which indicates that it is not generating enough profit to cover the cost of its equity.
– Williston Holding Co ($OTCPK:WHCA)
Williston Holding Co is a publicly traded company with a market capitalization of 401.76k as of 2022. The company has a return on equity of 7.94%. Williston Holding Co is engaged in the business of oil and gas exploration, production, and development in the Williston Basin in the United States.
– Doutor Nichires Holdings Co Ltd ($TSE:3087)
Doutor Nichires Holdings Co Ltd is a Japanese company that operates in the food and beverage industry. The company has a market capitalization of 72.96 billion as of 2022 and a return on equity of 2.52%. The company’s main operations consist of the production and sale of coffee, tea, and other beverages. The company also operates a chain of coffee shops called Doutor Coffee.
Summary
Dutch Bros is a coffee company that recently caught the attention of Hedgeye Analyst Howard Penney. This sent shock waves through the investing world and the stock price moved down that same day. Investors must now consider how to respond to this news in order to minimize their losses or make any profits.
Those with an existing position should analyze the potential risks and rewards of continuing holding the stock, while those who don’t own the stock may want to consider whether it’s worth taking a position at its current levels. A thorough analysis of Dutch Bros fundamentals is essential to help investors understand their potential exposure in this situation.
