Yesway, Inc., headquartered in Fort Worth, Texas, is one of the fastest-growing convenience store chains in the United States. Founded in 2015 by Brookwood Financial Partners, the company has rapidly expanded its footprint through a aggressive acquisition strategy and new store developments. A major turning point for the company was the 2019 acquisition of Allsup’s Convenience Stores, a legendary regional chain, which more than doubled the company's size and added a cult-favorite food service program. The company operates hundreds of stores across several states, primarily in the Midwest and Southwest, including Texas, New Mexico, Oklahoma, Kansas, and Iowa. Yesway’s business model integrates traditional convenience retail with a heavy emphasis on high-margin food service and private-label goods. The Allsup’s brand is particularly famous for its world-class deep-fried burritos, which serve as a significant foot-traffic driver. Yesway focuses on modernizing the convenience store experience by implementing advanced loyalty programs, such as Yesway Rewards, and upgrading store technology and aesthetics. The company targets rural and suburban markets where it can establish a dominant local presence. While Yesway filed for an initial public offering in 2021 to transition to a public entity, it continues to operate as a major player in the consumer staples and retail distribution sector, backed by institutional investment and a focus on regional market consolidation.
Gross margin measures the amount of revenue that remains after subtracting costs directly associated with production.
The EBITDA margin is a measure of a company's operating profit desconsidering D&A costs as a percentage of its revenue.
The EBIT margin is a measure of a company's operating profit considering D&A costs as a percentage of its revenue.
The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue. It is the ratio of net profits to revenues for a company or business segment.
Many companies have a high D&A in relation to the company's operating profit (EBITDA) and although this indicator does not have an effective cash effect, it ends up influencing the accounting net income, so analyzing this relationship can help to understand when D&A has a relevant impact to the company's results.
Shows the amount spent on investments in research and development in relation to the Net Revenue for the period. The company can use these investments to try to increase its revenue in the future.
Shows the amount spent on investments in Capex in relation to Net Revenue for the period. The company can use these investments to try to increase its revenue in the future.
Indicates a comparison between investments in fixed/intangible assets and the depreciation and amortization of some company assets. It serves to let managers know that the company's assets are devaluing periodically, and whether CAPEX has followed the same pace or not.
It shows the percentage of operating cash flow that the company uses in Capex (investments in fixed and intangible assets). When your result is greater than 100%, it demonstrates that there are expenses greater than what the company produces in its operations.
It demonstrates the percentage cost of Stock-Based Compensation compared to the company's operating cash flow. In some companies, the OCF is positive because of the SBC, which can lead to an incorrect cash flow analysis.
If the company has a lot of D&A, it helps to see if most of it tends to come from fixed assets. The account can include machinery, equipment, vehicles, buildings, land, office equipment, and furnishings, among other things.
If the company has a lot of D&A, it helps to see if most of it tends to come from Goodwill, that is an intangible asset that accounts for the excess purchase price of another company.
Return on equity (ROE) is the measure of a company's net income divided by its shareholders' equity and is a gauge of a corporation's profitability and how efficiently it generates those profits.
Return on invested capital (ROIC) is a calculation used to assess a company's efficiency in allocating capital to profitable investments. The formula for calculating ROIC involves dividing Net Income by the average of invested capital.
...and much more!