Jersey Mike's Subs Inc. (JMKE): one to watch?

Interesting but not a clear bargain yet — the drop looks like post-IPO insider selling/overhang, not a broken business, but the stock is brand-new and unproven.

👀 WATCH Fundamentals61/100

Fell 22% in 11 trading day(s) — now $17.16

Why JMKE dropped

JMKE IPO'd on July 30, 2026 at $23; since then pre-IPO owners (Blackstone, Abu Dhabi Investment Authority) have been selling shares as lockup restrictions ease, and the stock has drifted down almost continuously despite the company reporting solid Q2 revenue growth (+10%) and raising guidance on September 9. The reported negative net margin is mostly an artifact of a large tax-related payment obligation to pre-IPO owners (a Tax Receivable Agreement, worth up to ~$2.08B in a hypothetical scenario) plus IPO-related one-off costs and higher interest expense — not evidence the actual restaurant business is struggling.

Fwd P/E 22.4Op margin 38.0%Rev growth 10.1%Debt/equity 35.9%Analyst upside 63.1%

How this scored 61/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Loss-making today, but operations are profitable (38.0%) and analysts expect positive earnings next year

✅ Generates cash Free cash flow unknown

✅ Not drowning in debt Debt/equity 35.9% (limit 200%)

✅ Can pay its bills Current ratio 1.8 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 11/25

Operating margin 38.0% 9/9

Net profit margin -0.1% 0/8

Return on equity unknown 2/8

Growth Is it getting bigger, or dying? 15/25

Revenue growth 10.1% 5/9

Earnings growth unknown 2/8

Expected profit change 307.4% 8/8

Value Is it cheap right now? 19/25

Forward P/E 22.4 6/10

PEG ratio 0.8 7/8

Analyst target upside 63.1% 7/7

Balance sheet Will it survive? 16/25

Debt / equity 35.9% 9/10

Current ratio 1.8 4/8

Free cash flow unknown 2/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-25. Research only — not financial advice.