Rocky Mountain Chocolate Factory Inc. Common Stock (RMCF)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-style investor, I start with whether a business earns a profit. Rocky Mountain Chocolate Factory does not. In FY2024, the year ended 2024-02-29, revenue was $28.0 million and net loss was $4.2 million; in FY2025, the year ended 2025-02-28, revenue was $29.6 million and net loss was $6.1 million; in FY2026, the year ended 2026-02-28, revenue was $27.5 million and net loss was $4.6 million. The latest filed quarter, fiscal Q1 2027, the quarter ended 2026-05-31, had revenue of $6.1 million and net loss of $1.2 million, or diluted EPS of -$0.12. That is not evidence of a moat; a confectionery brand that cannot cover its costs lacks durable pricing power. Financial health is poor: FairStock calculations show ROE of -99.38%, ROCE of -14.13%, debt-to-equity of 2.00, Altman Z-Score of -0.25, and Piotroski F-Score of 3/9. Trailing free cash flow is -$3.2 million, a -35.3% FCF yield against the $9.0 million market cap. At the 2026-10-13 close of $0.95, the FairStock P/E is -1.48 and P/B is 2.16. A negative P/E means there are no earnings to value, and paying twice book for a cash-burning business offers little Graham margin of safety. The computed Lynch category is none because losses occurred in each of the last four years. Unless revenue stabilizes and losses genuinely narrow, this looks speculative, not a value investment.

In plain English: Rocky Mountain Chocolate Factory makes and sells chocolate and runs franchised candy stores. It has lost money in each of the last several years, including a $1.2 million loss in the quarter ended 2026-05-31, and it is burning cash. At 95 cents a share, the price is low, but with continuing losses and negative cash flow, it does not look like a safe bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-05-31) · fiscal Q3 2026 10-Q (period ended 2025-11-30) · fiscal Q2 2026 10-Q (period ended 2025-08-31) · fiscal Q1 2026 10-Q (period ended 2025-05-31) · FY2026 10-K (period ended 2026-02-28) · FY2025 10-K (period ended 2025-02-28) · FY2024 10-K (period ended 2024-02-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer