GEN Restaurant Valuation Analysis
| GENK Stock | 2.34 0.06 2.63% |
Key valuation drivers for GEN Restaurant include:
Price Book 0.85 | Enterprise Value | Price Sales 0.36 | Forward PE 166.67 | Enterprise Value Revenue 0.93 |
Below Model Estimate
Today
The intrinsic value estimate for GEN Restaurant Group is based on a 3 months horizon. Negative profit margins (-1.42%) signal ongoing profitability risk influencing market valuation. Extending the time horizon generally improves valuation stability.
GEN Restaurant Cash | $2.68 million |
Cash stood at $2.82 million as of December 31, 2025.
GEN Restaurant is a hospitality business where revenue is driven by occupancy rates, travel demand, and pricing power, which directly shapes its valuation profile and margin structure. Classified as a turnaround stock in Hotels, Restaurants & Leisure, negative margins indicate the investment case rests on restoring operational profitability. What follows breaks down capital structure, margins, and earnings quality to assess whether current pricing is supported by fundamentals.
Total Value Analysis
The current total-value analysis for GEN Restaurant Group points to enterprise value near 196.86 million, market capitalization around 77.04 million, debt of 187.22 million, and cash and liquid equivalents of n/a as of latest reporting. This capital-structure snapshot is most informative when tested against operating margins, cash generation, and debt servicing capacity.| Takeover Price | Market Cap | Debt Obligations | Cash & Equivalents |
196.86 million | 77.04 million | 187.22 million |
Investor Information
About 18.0% of GENK shares are owned by institutional investors. GENK has price-to-book (P/B) ratio of 0.85. Equities trading below book value may carry value potential, though margin and return quality should confirm. GEN Restaurant reported a loss per share of 0.59. GENK had its last dividend issued on the 9th of June 2025. Capital allocation and earnings structure point to GEN Restaurant having pressured financial positioning. Profitability is currently challenged, with return on assets below breakeven.Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. GEN Restaurant has an asset utilization ratio of 81.79 percent. This suggests that the Company is making USD0.82 for each dollar of assets. An increasing asset utilization means that GEN Restaurant Group is more efficient with each dollar of assets it utilizes for everyday operations.Macro event markers
Discounted Cash Flow Analysis
GEN Restaurant Group screens below its custom levered DCF estimate, with implied equity value per share of 290.63 against a market price of 2.34. Relative to the modeled value, the stock sits roughly 12,320.1% lower. The model discounts levered cash flows at 2.60% and assumes terminal growth of 2.0%, while forward free cash flow is near 11.18 Million. Projected discounted levered cash flows total about 50.53 Million, while the terminal value contributes around 97.0% of enterprise value. As a result, the output remains highly sensitive to long-term assumptions. A divergence of this magnitude signals that the model output is heavily assumption-dependent. Since 97.0% of enterprise value rests on the terminal component, the estimate is particularly sensitive to long-term growth, margin trajectory, and discount rate assumptions.Model Value / Share
290.63
Equity value per share from the current custom levered DCF summary row.
Market Price
2.34
Current market price used by the same scenario.
Model Upside
12,320.1%
Market price sits below the model output.
WACC / LT Growth
2.60% / 2.0%
Forecast horizon: 2021 to 2030Terminal value share of EV: 97.0%
GEN Restaurant Market Price vs. Intrinsic Value
This chart compares observed market pricing with the model-derived equity value per share across forecast periods. It also illustrates the relative premium or discount, expressed as a percentage difference between market valuation and modeled intrinsic value.
Projected Revenue and Levered Free Cash Flow
Revenue and levered free cash flow projections are presented in billions, outlining the expected financial trajectory over the modeled horizon.
Key Model Assumptions
The inputs below reflect the core assumptions applied in the valuation model, including growth expectations, discount rates, and capital structure considerations.
| Input | Current Value |
|---|---|
| Weighted Average Cost of Capital | 2.60% |
| Long-Term Growth Rate | 2.0% |
| Cost of Equity | 7.73% |
| After-Tax Cost of Debt | 0.60% |
| Debt Weighting | 93.94% |
| Equity Weighting | 6.06% |
| Net Debt | 184.39 million |
| Enterprise Value | 1.69 billion |
| Present Terminal Value | 1.63 billion |
| Terminal Value Share of EV | 97.0% |
Forecast Detail and Valuation Progression
This table presents the underlying forecast data used in the valuation, including revenue, cash flow generation, discounting effects, and the resulting per-share value across each projected period.
| Year | Revenue | Revenue Growth | Free Cash Flow | PV of LFCF | Equity Value / Share |
|---|---|---|---|---|---|
| 2021 | 140.56 million | 0.00% | 38.52 million | 0 | 269.46 |
| 2022 | 163.73 million | 16.48% | 15.29 million | 0 | 273.09 |
| 2023 | 181.01 million | 10.55% | 5.01 million | 0 | 280.96 |
| 2024 | 208.38 million | 15.12% | -6 million | 0 | 317.79 |
| 2025 | 212.54 million | 2.00% | -24.32 million | 0 | 316.00 |
| 2026 | 214.88 million | 1.10% | 10.82 million | 10.55 million | 290.63 |
| 2027 | 216.18 million | 0.60% | 10.89 million | 10.35 million | 290.63 |
| 2028 | 216.9 million | 0.33% | 10.93 million | 10.12 million | 290.63 |
| 2029 | 217.29 million | 0.18% | 10.95 million | 9.88 million | 290.63 |
| 2030 | 217.51 million | 0.10% | 10.96 million | 9.64 million | 290.63 |
Profitability Analysis
Based on GEN Restaurant's financial statements, GEN Restaurant Group is currently operating at a loss, with net income of -19.38 million. The net profit margin is -1.35% and operating margin is -2.96%, with return on equity at -20.0%. Despite reporting a net loss, most profitability indicators are improving year over year, suggesting the margin structure may be stabilizing.Net Loss | First Reported 2010-12-31 | Previous Quarter -3.03 million | Current Value -3.03 million | Quarterly Volatility 12.12 million |
Macro event markers
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 8.70% | 9.16% |
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Profitability for GEN Restaurant depends on margin structure, capital efficiency, and cost control. Both net and operating margins are negative (-1.35% and -2.96% respectively), indicating the business is consuming more capital than it generates at current revenue levels. The ratios below show whether current profitability is durable, improving, or under pressure. GEN Restaurant reports return on equity of -20.0%, reflecting negative returns on shareholder capital.
Earnings per Share Projection vs Actual
Analyst consensus on GEN Restaurant's EPS captures the range of professional forecasts and their trajectory over time. An operating margin of -2.96% frames the cost structure behind GEN Restaurant's reported EPS. Comparing GEN Restaurant's EPS against revenue growth and cash conversion clarifies earnings quality. Projected earnings per share for GEN Restaurant Group anchor the market's pricing of near-term earnings power. Consensus estimates may not capture non-recurring items or stock-compensation effects, so testing against the current net margin profile (-1.35%), guidance revisions, and prior forecast error adds precision. GEN Restaurant reported estimated earnings of -0.09 in earnings per share on 30th of June 2026. Comparing this projection against historical actuals shows whether the consensus is trending toward or away from the company's recent earnings trajectory.Macro event markers
Ownership Allocation
GEN Restaurant has a 10.12% of its outstanding shares held by insiders and 17.89% owned by institutions.Revenue and Profit Overview
GENK reported previous year's revenue of $212.54 million. Net Loss for the year was -$19.38 million with profit before overhead, payroll, taxes, and interest of $28.43 million.Dividend Payment History
Understanding dividend distributions from the Stock may help investors assess capital return consistency. Dividend sustainability depends on earnings support and broader capital allocation priorities. For additional distribution details, see how the Stock distributes income.
Reading the Current Signals
Negative margins at GEN Restaurant point to cost pressures outpacing revenue. In consumer and retail companies, this condition is structural rather than transient - until operating economics stabilize, earnings-based valuation metrics are less informative.
Overall Interpretation
Across the key valuation dimensions, GEN Restaurant Group presents a business currently operating below profitability breakeven, where operating costs tied to the underlying business model outpace revenue within Hotels, Restaurants & Leisure. Negative margins are the dominant signal - the business is consuming more capital than it generates, making traditional valuation multiples unreliable. For consumer and retail companies, this is a direct consequence of the underlying cost structure and the sensitivity of profitability to volume and pricing. At current levels, GEN Restaurant's valuation reflects an earnings profile that has not yet stabilized. For the market to reprice this business more constructively, brand resilience, pricing power, and consumer spending trends would need to demonstrate sustained improvement.
Each of the valuation dimensions above captures a different angle on GEN Restaurant Group, and their combined signal matters more than any single metric. With margins currently negative, the critical question is whether the path to profitability is supported by revenue trends and cost discipline.
Valuation Framework, Methodology & Assumptions
GEN Restaurant is a micro-cap equity in Hotels, Restaurants & Leisure, Consumer Services, Consumer Discretionary categories. Sector-relative metrics refine price assessment. Current valuation multiples for GEN Restaurant include P/S of 0.36, enterprise value (TTM) of 196.86 million, P/B of 0.85.
GEN Restaurant Group inputs come from periodic company reporting and market reference feeds and are mapped into a consistent reporting framework. Valuation outputs are model-derived and depend on published assumptions and reference inputs.
The analysis above is generated by quantitative models and is provided for informational and educational purposes only. It does not constitute financial advice, investment recommendations, or an endorsement to buy or sell any security. All investing involves risk, including the possible loss of principal. Consult a qualified financial advisor before making investment decisions. See our Terms of Use for full details.
Financial data referenced in this analysis is derived from publicly available SEC filings, audited financial statements, and third-party market data providers. The intrinsic value estimate is generated by Macroaxis quantitative models that incorporate fundamental analysis, technical indicators, and risk metrics.
The methodology combines multiple analytical inputs:
- Fundamental analysis - financial statements, profitability ratios, debt structure, and cash flow metrics sourced from SEC filings and public financial reports
- Technical indicators - historical price patterns, momentum signals, and volatility measures
- Risk assessment - probability of bankruptcy models, market risk metrics, and downside scenario analysis
- Peer comparison - relative valuation against industry peers using standardized multiples
Model outputs are refreshed periodically as new financial data becomes available. Past model performance is not indicative of future results. The intrinsic value estimate reflects a point-in-time calculation and should be considered alongside other research and professional advice.
Data sourced from SEC filings (EDGAR), public financial statements, and market data providers.
Editorial review and methodology oversight provided by: Raphi Shpitalnik, Junior Member of Macroaxis Editorial Board
Growth Indicators
Reviewing growth indicators for GEN Restaurant Group is especially important when the thesis depends on margin repair or cyclical recovery rather than already-established compounding. This kind of analysis helps distinguish a genuine operating recovery from a lower-quality bounce that may not hold through a full cycle.
| Common Stock Shares Outstanding | 5.16 million | |
| Quarterly Earnings Growth Y O Y | -93.60% | |
| Forward Price Earnings | 166.6667 |
GEN Restaurant Current Valuation Indicators
A net-worth review of GEN Restaurant Group links market cap to balance-sheet health, cash flow, and implied growth expectations. Earnings multiples, cash-flow yields, and asset-based measures work best as a group rather than in isolation. Reported values are derived from company filings, audited financial statements, and market data, and are standardized within Macroaxis quantitative models for consistency. Model outputs reflect a point-in-time estimate based on available data and assumptions and should be interpreted alongside changes in operating performance, market conditions, and forward expectations.