Biglari Holdings Inc. (BH)
Valuation Overview•Is Biglari Holdings Inc. Overvalued or Undervalued?
Commands a peer premium multiple, but this multiple is justified by a strong intrinsic cash flow value.
Fragile underlying quality score of 43/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street sentiment is generally neutral. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
BH struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company exhibits steady, low-single-digit revenue growth paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 7.8%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $97.5M | +9.2% | +2.4% | -1.8% | -7.5% | |
| EBITDA | $13.7M | — | -20.8% | — | — | |
| Net Income | -$14.5M | -897.3% | -5.4% | — | -9.0% | |
| EPS (Diluted) | $-4.63 | -349.1% | — | — | -5.9% | |
| Free Cash Flow | $13.4M | +301.8% | -7.9% | -4.6% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 30.6% | 32.5% | 35.6% | 28.8% |
| Operating Margin | 7.8% | 7.2% | 12.5% | 9.0% |
| Net Margin | -4.7% | 1.5% | 1.1% | 2.4% |
| FCF Margin | 20.5% | 12.7% | 21.9% | 15.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | — | $-0.56 | — | ||
| Q1'26 | — | $-2.38 | — | ||
| Q4'25 | — | $23.46 | — | ||
| Q3'25 | — | $9.17 | — | ||
| Q2'25 | — | $23.37 | — | ||
| Q1'25 | — | $-36.60 | — | ||
| Q4'24 | — | $114.77 | — | ||
| Q3'24 | — | $-12.87 | — |
Total return is +25.1% (1Y), outperforming the benchmark by +4.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +4.6% | -2.7% | — |
| 1Y | +25.1% | +4.3% | — |
| 3YCAGR | +23.4% | +1.8% | — |
| 5YCAGR | +17.3% | +4.8% | — |
| 10YCAGR | +2.4% | -11.5% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Biglari Holdings Inc. (BH) valuation, health, and returns.
Biglari Holdings Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. undervalued (implying +36.0% upside to DCF intrinsic value of $549.61)
Biglari Holdings Inc. has multiple valuation anchors: DCF Intrinsic Value: $549.61 | Peer Relative Fair Value: $362.31. A convergence of these signals offers higher conviction.
Biglari Holdings Inc. displays fair financial health with a composite quality score of 43/100, supported by a Altman Z-Score of 2.5 (grey zone), Piotroski F-Score of 3/9, Return on Invested Capital (ROIC) of 2.1%.
Biglari Holdings Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Biglari Holdings Inc.'s current growth trajectory is Accelerating. The company achieved +9.2% 1Y revenue growth and -349.1% 1Y EPS growth, compared to its 3Y revenue CAGR of +2.4%.
Wall Street consensus is Buy based on 2 analysts, beating EPS expectations in 83% of recent quarters with a 5-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for Biglari Holdings Inc. include: -48.0% 1-year max drawdown. Volatility risk is characterized by a beta of 0.97x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.