Jamba Inc. (JMBA, Financial) Director and 10% owner Glenn W. Welling purchased 135,000 shares of the company between Dec. 1 and Dec. 5, according to a Form 4 filing with the Securities and Exchange Commision.
The trades occurred in seven transactions for an average price of $10.12 per share. After the purchases Welling now owns 1,984,785 shares of Jamba.
Jamba has a market cap of $153.76 million, an enterprise value of $141.04 million, a price-book (P/B) ratio of 215.53, a price-sales (P/S) ratio of 1.89 and a quick ratio of 0.64.
Jamba through its wholly owned subsidiary, Jamba Juice Co., is a healthy, active lifestyle brand.
The company is a retailer of blended-to-order fruit smoothies, squeezed-to-order juices, blended beverages and snacks including breakfast wraps, side salads, sandwiches, California flatbreads and a range of baked goods and snacks. The company was incorporated on Jan. 6, 2005. As of Dec. 29, 2015, Jamba Juice had 893 stores globally.
According to GuruFocus Jamba has a 5 of 10 financial strength rating with no debt. The company has a Piotroski F-score of 4 and an Altman Z-Score of -7.19 indicating that it is in the distressed zone and could potentially file for bankruptcy in the next two years. The company also has a 2/10 profitability and growth rating with an operating margin of -18.39%, a net-margin of -18.96%, an ROE of -330.73% and EBITDA growth (three years) of -14.90%.
Welling may have decided to purchase the shares because the company is close to its three-year low in price and has no debt.
It is noteworthy for investors that Jamba’s revenue and gross profit have both been in long-term decline.
Since December 2007, Jamba’s revenue has declined from a reported $317.21 million to $81.90 million over the previous trailing 12 months, an average annual decrease of -13.97% over the previous nine years.
Since December 2007, Jamba’s gross profit has declined from a reported $92.86 million to $32.57 million over the previous trailing 12 months. This is an average estimated decline of -11% over the previous nine years.
Below is a Peter Lynch chart that shows Jamba Juice is trading above its intrinsic value.
Disclosure:Â Author does not own any shares of this company.
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