GTIM:NASDAQGood Times Restaurants Inc. Analysis
Data as of 2026-07-23 - not real-time
$1.40
Latest Price
7/10Risk
Risk Level: Medium
Executive Summary
The stock is trading just below its 20‑day SMA (≈$1.41) and above the 50‑ and 200‑day averages, indicating a modest bullish bias, while the RSI sits at a neutral 54. However, the MACD histogram is negative and the signal line is bearish, and volume has been sharply declining, suggesting short‑term weakness.
Fundamentally, GTIM posted a 3% revenue decline, with razor‑thin gross (≈10%) and operating margins (≈1.5%) and earnings per share falling from $0.17 to a forward estimate of $0.02, driving the forward PE to an alarming 70. The balance sheet is strained – debt exceeds equity by more than 100% and cash barely covers a fraction of total debt. Yet the market values the company at only 0.44× book and 0.11× sales, making it appear cheap on a pure asset basis.
Overall, the valuation feels *fair* but leans toward *value* given the low growth prospects and high leverage. The company does not pay a dividend, so dividend sustainability is irrelevant.
Fundamentally, GTIM posted a 3% revenue decline, with razor‑thin gross (≈10%) and operating margins (≈1.5%) and earnings per share falling from $0.17 to a forward estimate of $0.02, driving the forward PE to an alarming 70. The balance sheet is strained – debt exceeds equity by more than 100% and cash barely covers a fraction of total debt. Yet the market values the company at only 0.44× book and 0.11× sales, making it appear cheap on a pure asset basis.
Overall, the valuation feels *fair* but leans toward *value* given the low growth prospects and high leverage. The company does not pay a dividend, so dividend sustainability is irrelevant.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 5/10
Key Factors
- Price hovering near support at $1.31
- Decreasing volume and bearish MACD
- Neutral RSI indicating limited upside
Medium Term
1–3 yearsNeutral
Model confidence: 6/10
Key Factors
- Extremely low price‑to‑book and price‑to‑sales ratios
- High debt‑to‑equity ratio stressing balance sheet
- Forward earnings outlook weak (PE 70)
Long Term
> 3 yearsCautious
Model confidence: 7/10
Key Factors
- Sustained revenue decline and minimal profit margins
- Leverage exceeding $38 M against $2.7 M cash
- Cyclical restaurant sector vulnerable to economic downturns
Key Metrics & Analysis
Financial Health
Revenue Growth-3.10%
Profit Margin1.33%
P/E Ratio8.2
ROE5.74%
ROA0.95%
Debt/Equity112.21
P/B Ratio0.4
Op. Cash Flow$3.4M
Free Cash Flow$2.7M
Technical Analysis
TrendBullish
RSI54.2
Support$1.31
Resistance$1.52
MA 20$1.41
MA 50$1.34
MA 200$1.30
MACDBearish
VolumeDecreasing
Fear & Greed Index88.79
Valuation
GradeFair
TypeValue
Risk Assessment
Beta0.43
Volatility23.19%
Sector RiskMedium
Reg. RiskLow
Geo RiskLow
Currency RiskLow
Liquidity RiskHigh
Similar Tickers
This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.