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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
RMCF's Price-to-Net-Net-Working-Capital is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 6.565 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Rocky Mountain Chocolate Factory (NAS:RMCF) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Rocky Mountain Chocolate Factory Net-Net Working Capital Related Terms
Rocky Mountain Chocolate Factory Net-Net Working Capital Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Rocky Mountain Chocolate Factory Net-Net Working Capital Chart
RMCF vs MTTCF, MGNC, PURE: Net-Net Working Capital Comparison
For the Confectioners subindustry, Rocky Mountain Chocolate Factory's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rocky Mountain Chocolate Factory Price-to-Net-Net-Working-Capital vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Rocky Mountain Chocolate Factory's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Rocky Mountain Chocolate Factory's Price-to-Net-Net-Working-Capital falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-1.15 mean?
Rocky Mountain Chocolate Factory (RMCF) has a Net-Net Working Capital of $-1.15 as of May. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Rocky Mountain Chocolate Factory According to the industry distribution chart, Rocky Mountain Chocolate Factory ranks #999999 out of 664 companies in the Consumer Packaged Goods industry.
Is Rocky Mountain Chocolate Factory's Net-Net Working Capital too high?
Rocky Mountain Chocolate Factory's current Net-Net Working Capital is $-1.15. Based on the distribution chart, Rocky Mountain Chocolate Factory ranks #999999 out of 664 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Rocky Mountain Chocolate Factory has a GF Score™ of 40/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Rocky Mountain Chocolate Factory's Net-Net Working Capital compare to MTTCF and MGNC?
According to the Consumer Packaged Goods industry distribution chart, Rocky Mountain Chocolate Factory ranks #999999 out of 664 companies for Net-Net Working Capital. This places Rocky Mountain Chocolate Factory in the lower half of its industry. The industry median Net-Net Working Capital is 6.57. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Consumer Packaged Goods company?
The median Net-Net Working Capital among Consumer Packaged Goods companies is 6.57, based on 664 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Rocky Mountain Chocolate Factory For the Consumer Packaged Goods industry, the median Net-Net Working Capital is 6.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rocky Mountain Chocolate Factory's current Net-Net Working Capital is $-1.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rocky Mountain Chocolate Factory stock overvalued right now?
Based on GuruFocus' analysis, Rocky Mountain Chocolate Factory (RMCF) is currently considered Possible Value Trap. The stock's GF Value™ is $1.73, compared to a current price of $0.88 — trading 49.2% below its estimated fair value. The current Net-Net Working Capital is $-1.15. Rocky Mountain Chocolate Factory's overall GF Score™ is 40/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Rocky Mountain Chocolate Factory (RMCF), the current Net-Net Working Capital is $-1.15 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rocky Mountain Chocolate Factory (RMCF) Overvalued in 2026?
Based on GuruFocus' analysis, Rocky Mountain Chocolate Factory stock appears to be undervalued.
The current stock price of $0.88 is trading 49.2% below its estimated GF Value™ of $1.73.
GuruFocus considers Rocky Mountain Chocolate Factory to be Possible Value Trap.
Key valuation signals for RMCF:
Net-Net Working Capital: $-1.15
GF Value™: $1.73 vs. price of $0.88 (49.2% below fair value)
No single metric tells the full story. See the RMCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rocky Mountain Chocolate Factory Business Description
Rocky Mountain Chocolate Factory Inc operates as a manufacturer of chocolate candies and confectionery products. The company prepares numerous products, including caramel apples in the store. The business activity of the firm functions through Franchising, Manufacturing, Retail Stores, and Others. The company derives maximum revenue through manufacturing activities. The products of the company include varieties of Clusters, Caramels, Creams, Toffees, Mints, and Truffles.
40GF Score
Get the complete analysis for RMCF
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