📊 RMCF Key Takeaways
Is Rocky Mountain Chocolate Factory, Inc. (RMCF) a Good Investment?
Rocky Mountain Chocolate Factory is unprofitable and burning cash despite modest revenue growth, indicating fundamental operational challenges. With negative operating cash flow of $1.4M, a depleted cash position of only $641K, and negative ROE/ROA, the company faces severe financial stress with limited runway to achieve turnaround without capital infusion or significant operational restructuring.
RMCF delivers modest revenue growth, but profitability remains negative with a 19.3% gross margin, -2.6% operating margin, and -$1.38M operating cash flow. Cash is thin and interest coverage is negative, creating near-term liquidity pressure despite low leverage. Without clear margin expansion and a turn to positive operating cash flow, fundamentals skew unfavorably.
Why Buy Rocky Mountain Chocolate Factory, Inc. Stock? RMCF Key Strengths
- Revenue growth of 5.8% YoY demonstrates continued top-line demand
- Gross margins of 19.3% suggest reasonable product pricing power and cost of goods
- Manageable debt-to-equity ratio of 0.25x provides some financial flexibility
- Revenue growth of +5.8% YoY
- Low leverage (Debt/Equity 0.25x; LT debt $1.52M)
- Capex-light profile ($262k) enabling potential cash recovery when operations improve
RMCF Stock Risks: Rocky Mountain Chocolate Factory, Inc. Investment Risks
- Negative operating cash flow of -$1.4M and negative free cash flow of -$1.6M indicate unsustainable business model
- Critically low cash balance of $641K combined with operational burn rate creates acute liquidity risk
- Operating margin of -2.6% and net margin of -5.5% reveal the company loses money on every revenue dollar generated
- Quick ratio of 0.93x indicates potential near-term liquidity stress despite acceptable current ratio
- Deteriorating EPS down 30.3% YoY signals worsening profitability trajectory
- Sustained cash burn: OCF -$1.38M and FCF -$1.64M
- Thin profitability (19.3% gross; -2.6% operating) limits earnings power
- Liquidity strain: $0.64M cash, quick ratio 0.93x, and negative interest coverage (-0.9x)
Key Metrics to Watch
- Operating cash flow - must return to positive to demonstrate business viability
- Cash and equivalents - monitor runway given burn rate; critical threshold around $500K
- Operating margin and expense ratio - understand why opex exceeds gross profit
- Gross margin (%)
- Operating cash flow
Rocky Mountain Chocolate Factory, Inc. (RMCF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Rocky Mountain Chocolate Factory, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
RMCF Profit Margin, ROE & Profitability Analysis
RMCF vs Market Sector: How Rocky Mountain Chocolate Factory, Inc. Compares
How Rocky Mountain Chocolate Factory, Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Rocky Mountain Chocolate Factory, Inc. Stock Overvalued? RMCF Valuation Analysis 2026
Based on fundamental analysis, Rocky Mountain Chocolate Factory, Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Rocky Mountain Chocolate Factory, Inc. Balance Sheet: RMCF Debt, Cash & Liquidity
RMCF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Rocky Mountain Chocolate Factory, Inc.'s revenue has declined by 14% over the 5-year period, indicating business contraction. The most recent EPS of $-0.66 indicates the company is currently unprofitable.
RMCF Revenue Growth, EPS Growth & YoY Performance
RMCF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $7.5M | -$155.0K | $-0.02 |
| Q2 2026 | $6.4M | -$324.0K | $-0.09 |
| Q1 2026 | $6.4M | -$324.0K | $-0.04 |
| Q3 2025 | $7.7M | -$722.0K | $-0.11 |
| Q2 2025 | $6.4M | -$722.0K | $-0.11 |
| Q1 2025 | $6.4M | -$823.0K | $-0.13 |
| Q3 2024 | $7.7M | -$212.0K | $-0.03 |
| Q2 2024 | $6.6M | -$999.3K | $-0.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Rocky Mountain Chocolate Factory, Inc. Dividends, Buybacks & Capital Allocation
RMCF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Rocky Mountain Chocolate Factory, Inc. (CIK: 0001616262)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RMCF
What is the AI rating for RMCF?
Rocky Mountain Chocolate Factory, Inc. (RMCF) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are RMCF's key strengths?
Claude: Revenue growth of 5.8% YoY demonstrates continued top-line demand. Gross margins of 19.3% suggest reasonable product pricing power and cost of goods. ChatGPT: Revenue growth of +5.8% YoY. Low leverage (Debt/Equity 0.25x; LT debt $1.52M).
What are the risks of investing in RMCF?
Claude: Negative operating cash flow of -$1.4M and negative free cash flow of -$1.6M indicate unsustainable business model. Critically low cash balance of $641K combined with operational burn rate creates acute liquidity risk. ChatGPT: Sustained cash burn: OCF -$1.38M and FCF -$1.64M. Thin profitability (19.3% gross; -2.6% operating) limits earnings power.
What is RMCF's revenue and growth?
Rocky Mountain Chocolate Factory, Inc. reported revenue of $20.7M.
Does RMCF pay dividends?
Rocky Mountain Chocolate Factory, Inc. does not currently pay dividends.
Where can I find RMCF SEC filings?
Official SEC filings for Rocky Mountain Chocolate Factory, Inc. (CIK: 0001616262) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RMCF's EPS?
Rocky Mountain Chocolate Factory, Inc. has a diluted EPS of $-0.15.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is RMCF a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Rocky Mountain Chocolate Factory, Inc. has a SELL rating with 79% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is RMCF stock overvalued or undervalued?
Valuation metrics for RMCF: ROE of -19.0% (sector avg: 15%), net margin of -5.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy RMCF stock in 2026?
Our dual AI analysis gives Rocky Mountain Chocolate Factory, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RMCF's free cash flow?
Rocky Mountain Chocolate Factory, Inc.'s operating cash flow is $-1.4M, with capital expenditures of $262.0K. FCF margin is -7.9%.
How does RMCF compare to other Market stocks?
Vs Default sector averages: Net margin -5.5% (avg: 12%), ROE -19.0% (avg: 15%), current ratio 1.66 (avg: 1.8).