1. Is the company undervalued?
EV/EBIT: 8.51 (This excludes operating leases)
EV/Sales: 0.81
Price/Book: 1.52
Chuy’s is a tiny company, which offers investors massive growth potential. Notwithstanding, the business model is still unproven with only 96 locations and a fairly thin margin profile. Conversely Chuy’s has a sterling balance and is returning meaningful capital back to shareholders. This coupled with a single digit earnings multiple, sets up for an incredibly compelling investment thesis!
Link to full write-up here: