(STKS) One Hospitality - Ratings and Ratios

The ONE Group Hospitality, Inc. is a multifaceted restaurant company that owns and operates a diverse portfolio of brands across the globe, leveraging a business model that encompasses ownership, development, operation, management, licensing, and franchising of restaurants and lounges. The companys operational segments, including STK, Benihana, and Grill Concepts, cater to a wide range of consumer preferences, from fine dining experiences like STK and Benihana, to more casual dining concepts such as Kona Grill and RA Sushi.

Beyond its restaurant brands, the company has expanded its footprint into the hospitality sector through its One Hospitality platform, which provides comprehensive F&B management services to hotels and casinos, including development, management, and operation of various dining and drinking establishments. This diversification strategy not only broadens its revenue streams but also positions the company as a significant player in the hospitality industry. The companys brand portfolio is further augmented by concepts like Bao Yum, Heliot, The Hideout by STK, Radio Rooftop, Rivershore Bar & Grill, and Salt Water Social, each catering to different dining preferences and environments.

Analyzing the companys current market position, we observe a stock price of $4.26, with short-term moving averages (SMA20 at $3.40 and SMA50 at $3.05) indicating a bullish trend. The Average True Range (ATR) of 0.25 represents a 5.90% volatility, suggesting a relatively stable stock. Given the 52-week high and low of $5.75 and $2.45, respectively, the stock is currently trading near the upper end of its recent range. The market capitalization stands at $96.18M, with a forward P/E ratio of 7.55, indicating potential undervaluation relative to its future earnings growth.

Considering the fundamental and technical data, a forecast for STKS can be derived. The absence of a current P/E ratio alongside a negative RoE (-11.80%) suggests that the company is currently not profitable on a net income basis, but the forward P/E indicates market expectations of future profitability. The stocks technical indicators, such as being above its SMA20 and SMA50, and nearing its 52-week high, suggest a positive short-term outlook. However, the SMA200 at $3.33 indicates that the stock has broken through a longer-term resistance level, which could be a bullish sign. Given these factors, a potential forecast could involve a continued upward trend, with potential resistance at the 52-week high of $5.75. If the company can achieve profitability as implied by the forward P/E, this could drive the stock price higher, potentially beyond $6.00 in the next 12-18 months, representing a significant upside from current levels.