Good Times Restaurants Inc. Common Stock (GTIM)
StalwartFairStock Score: 49/100 — MIXED
Key Financials
| Current Price | $1.24 |
| Market Cap | $14M |
| P/E Ratio | 7.29 |
| ROE | 5.74% |
| Dividend Yield | —% |
| Sector | Consumer Cyclical |
Strengths
- Generates $2 million in annual free cash flow (13.8% yield on market cap)
- Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
Concerns
- Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
- Revenue declining at 10.0% year-over-year signals potential demand weakness or market share loss
- Altman Z-Score of 0.2 places it in the financial distress zone—elevated bankruptcy risk
AI Analysis
Good Times Restaurants Inc. Common Stock is a micro-cap consumer cyclical company valued at $14 million. Revenue stands at $138 million, though the company is currently unprofitable. From a quality standpoint, Good shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 0.2 warrants caution. On valuation, the stock is attractively valued at 12.9x earnings, with offers a 51% margin of safety vs Graham Number of $3. Growth dynamics show revenue growing at -10.0% and profit growth of 10.4%. Our composite FairStock Score of 49/100 reflects mixed fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $2 million in annual free cash flow (13.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
Without a clear path to profitability, continued cash burn forces either dilutive equity raises or debt accumulation that destroys shareholder value. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer