J. Alexanders Holdings, Inc. owns and operates casual dining restaurants in the United States. It operates three complementary upscale dining restaurant concepts, including J. Alexanders, Redlands Grill, and Stoney River Steakhouse and Grill. The company was founded in 1970 and is based in Nashville, Tennessee.
JAX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for J Alexander's Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that J Alexander's Holdings Inc ranked in the 35th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of J Alexander's Holdings Inc, consider:
The company's compound free cash flow growth rate over the past 4.72 years comes in at -0.07%; that's greater than only 19.56% of US stocks we're applying DCF forecasting to.
As a business, JAX is generating more cash flow than only 8.02% of positive cash flow stocks in the Consumer Cyclical.
J Alexander's Holdings Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as JAX, try GHG, DLX, ETM, HHS, and BLMN.
Of the public companies that disclosed receiving the loans, 48 manufacturing businesses, secured $162.5 million in loans, according to Morgan Stanley. Accommodation and food services ranked a distant second.
A second round of relief funding is on the way for small businesses under the Payroll Protection Plan, but the legislation still contains a rule blocking most portfolio companies from tapping the cash.
The Payroll Protection Program small-business loan program was open to any restaurant business that had no more than 500 workers per location. Some publicly traded restaurant companies tapped the money.