46.98 USD
-0.8 (-1.67%)
46.6711 USD
-0.31 (-0.66%)
We assign a fundamental rating of 5 out of 10 to CAKE. CAKE was compared to 131 industry peers in the Hotels, Restaurants & Leisure industry. CAKE has a medium profitability rating, but doesn't score so well on its financial health evaluation. CAKE scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
CAKE had positive earnings in the past year.
In the past year CAKE had a positive cash flow from operations.
Of the past 5 years CAKE 4 years were profitable.
In the past 5 years CAKE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.96%, CAKE is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
Looking at the Return On Equity, with a value of 37.81%, CAKE belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
With a Return On Invested Capital value of 6.99%, CAKE perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CAKE is significantly below the industry average of 10.43%.
The 3 year average ROIC (5.05%) for CAKE is below the current ROIC(6.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 37.81% | ||
| ROIC | 6.99% |
ROA(3y)3.43%
ROA(5y)0.39%
ROE(3y)27.33%
ROE(5y)8.44%
ROIC(3y)5.05%
ROIC(5y)N/A
1.3 Margins
CAKE has a Profit Margin (4.33%) which is in line with its industry peers.
CAKE's Profit Margin has declined in the last couple of years.
CAKE has a Operating Margin of 5.89%. This is comparable to the rest of the industry: CAKE outperforms 42.42% of its industry peers.
CAKE's Operating Margin has been stable in the last couple of years.
CAKE has a better Gross Margin (78.13%) than 91.67% of its industry peers.
In the last couple of years the Gross Margin of CAKE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.89% | ||
| PM (TTM) | 4.33% | ||
| GM | 78.13% |
OM growth 3Y8.38%
OM growth 5Y1.18%
PM growth 3Y37.68%
PM growth 5Y-3.11%
GM growth 3Y-0.08%
GM growth 5Y0.03%
2. Health
2.1 Basic Checks
CAKE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CAKE has more shares outstanding
The number of shares outstanding for CAKE has been increased compared to 5 years ago.
CAKE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.34 indicates that CAKE is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.34, CAKE is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
CAKE has a debt to FCF ratio of 3.97. This is a good value and a sign of high solvency as CAKE would need 3.97 years to pay back of all of its debts.
CAKE has a Debt to FCF ratio of 3.97. This is in the better half of the industry: CAKE outperforms 78.03% of its industry peers.
CAKE has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.32, CAKE is in line with its industry, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.89
WACC7.88%
2.3 Liquidity
CAKE has a Current Ratio of 0.55. This is a bad value and indicates that CAKE is not financially healthy enough and could expect problems in meeting its short term obligations.
CAKE has a worse Current ratio (0.55) than 73.48% of its industry peers.
A Quick Ratio of 0.47 indicates that CAKE may have some problems paying its short term obligations.
CAKE has a worse Quick ratio (0.47) than 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.06% over the past year.
Measured over the past 5 years, CAKE shows a small growth in Earnings Per Share. The EPS has been growing by 5.68% on average per year.
The Revenue has been growing slightly by 4.90% in the past year.
CAKE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.61% yearly.
EPS 1Y (TTM)19.06%
EPS 3Y17.14%
EPS 5Y5.68%
EPS Q2Q%17.24%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y6.95%
Revenue growth 5Y7.61%
Sales Q2Q%4.82%
3.2 Future
CAKE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.12% yearly.
CAKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.87% yearly.
EPS Next Y11.37%
EPS Next 2Y9.05%
EPS Next 3Y9.62%
EPS Next 5Y10.12%
Revenue Next Year4.66%
Revenue Next 2Y4.66%
Revenue Next 3Y5.34%
Revenue Next 5Y4.87%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CAKE is valuated correctly with a Price/Earnings ratio of 12.33.
Compared to the rest of the industry, the Price/Earnings ratio of CAKE indicates a rather cheap valuation: CAKE is cheaper than 82.58% of the companies listed in the same industry.
CAKE is valuated cheaply when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.48, the valuation of CAKE can be described as very reasonable.
83.33% of the companies in the same industry are more expensive than CAKE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CAKE to the average of the S&P500 Index (23.69), we can say CAKE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 11.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAKE is valued a bit cheaper than 72.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CAKE is valued cheaply inside the industry as 82.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.79 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CAKE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.08
PEG (5Y)2.17
EPS Next 2Y9.05%
EPS Next 3Y9.62%
5. Dividend
5.1 Amount
CAKE has a Yearly Dividend Yield of 2.26%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of CAKE has falen by -22.51%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.84, CAKE pays a better dividend. On top of this CAKE pays more dividend than 81.82% of the companies listed in the same industry.
CAKE's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
The dividend of CAKE is nicely growing with an annual growth rate of 7.51%!
CAKE has paid a dividend for at least 10 years, which is a reliable track record.
CAKE has decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.51%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
32.74% of the earnings are spent on dividend by CAKE. This is a low number and sustainable payout ratio.
The dividend of CAKE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.74%
EPS Next 2Y9.05%
EPS Next 3Y9.62%
46.98
-0.8 (-1.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners114.87%
Inst Owner Change60.62%
Ins Owners8.01%
Ins Owner Change-1.78%
Market Cap2.34B
Revenue(TTM)3.71B
Net Income(TTM)160.81M
Analysts74.29
Price Target60.41 (28.59%)
Short Float %19.15%
Short Ratio6.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
Yearly Dividend1.04
Dividend Growth(5Y)7.51%
DP32.74%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.64%
Min EPS beat(2)6.79%
Max EPS beat(2)10.48%
EPS beat(4)4
Avg EPS beat(4)10.14%
Min EPS beat(4)6.79%
Max EPS beat(4)12.08%
EPS beat(8)8
Avg EPS beat(8)10.57%
EPS beat(12)10
Avg EPS beat(12)6.33%
EPS beat(16)10
Avg EPS beat(16)-5.94%
Revenue beat(2)0
Avg Revenue beat(2)-1.87%
Min Revenue beat(2)-2.56%
Max Revenue beat(2)-1.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-2.56%
Max Revenue beat(4)-1.06%
Revenue beat(8)0
Avg Revenue beat(8)-1.92%
Revenue beat(12)0
Avg Revenue beat(12)-2.31%
Revenue beat(16)0
Avg Revenue beat(16)-2.26%
PT rev (1m)-7.29%
PT rev (3m)-10.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.27%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 11.48 | ||
| P/S | 0.63 | ||
| P/FCF | 14.79 | ||
| P/OCF | 7.31 | ||
| P/B | 5.5 | ||
| P/tB | 13.52 | ||
| EV/EBITDA | 8.55 |
EPS(TTM)3.81
EY8.11%
EPS(NY)4.09
Fwd EY8.71%
FCF(TTM)3.18
FCFY6.76%
OCF(TTM)6.43
OCFY13.68%
SpS74.46
BVpS8.53
TBVpS3.48
PEG (NY)1.08
PEG (5Y)2.17
Graham Number27.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 37.81% | ||
| ROCE | 8.84% | ||
| ROIC | 6.99% | ||
| ROICexc | 7.57% | ||
| ROICexgc | 8.51% | ||
| OM | 5.89% | ||
| PM (TTM) | 4.33% | ||
| GM | 78.13% | ||
| FCFM | 4.27% |
ROA(3y)3.43%
ROA(5y)0.39%
ROE(3y)27.33%
ROE(5y)8.44%
ROIC(3y)5.05%
ROIC(5y)N/A
ROICexc(3y)5.24%
ROICexc(5y)N/A
ROICexgc(3y)5.93%
ROICexgc(5y)N/A
ROCE(3y)6.39%
ROCE(5y)N/A
ROICexgc growth 3Y10.35%
ROICexgc growth 5Y5.82%
ROICexc growth 3Y11%
ROICexc growth 5Y8.1%
OM growth 3Y8.38%
OM growth 5Y1.18%
PM growth 3Y37.68%
PM growth 5Y-3.11%
GM growth 3Y-0.08%
GM growth 5Y0.03%
F-Score7
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 3.97 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 151.71% | ||
| Cap/Sales | 4.37% | ||
| Interest Coverage | 19.27 | ||
| Cash Conversion | 98.5% | ||
| Profit Quality | 98.47% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 2.34 |
F-Score7
WACC7.88%
ROIC/WACC0.89
Cap/Depr(3y)148.68%
Cap/Depr(5y)115.39%
Cap/Sales(3y)4.13%
Cap/Sales(5y)3.45%
Profit Quality(3y)81.91%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.06%
EPS 3Y17.14%
EPS 5Y5.68%
EPS Q2Q%17.24%
EPS Next Y11.37%
EPS Next 2Y9.05%
EPS Next 3Y9.62%
EPS Next 5Y10.12%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y6.95%
Revenue growth 5Y7.61%
Sales Q2Q%4.82%
Revenue Next Year4.66%
Revenue Next 2Y4.66%
Revenue Next 3Y5.34%
Revenue Next 5Y4.87%
EBIT growth 1Y23.32%
EBIT growth 3Y15.92%
EBIT growth 5Y8.87%
EBIT Next Year77.28%
EBIT Next 3Y27.6%
EBIT Next 5Y21.97%
FCF growth 1Y101.98%
FCF growth 3Y-9.76%
FCF growth 5Y-5.64%
OCF growth 1Y50.06%
OCF growth 3Y8%
OCF growth 5Y4.17%
CHEESECAKE FACTORY INC/THE / CAKE FAQ
What is the fundamental rating for CAKE stock?
ChartMill assigns a fundamental rating of 5 / 10 to CAKE.
Can you provide the valuation status for CHEESECAKE FACTORY INC/THE?
ChartMill assigns a valuation rating of 7 / 10 to CHEESECAKE FACTORY INC/THE (CAKE). This can be considered as Undervalued.
What is the profitability of CAKE stock?
CHEESECAKE FACTORY INC/THE (CAKE) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for CAKE stock?
The Price/Earnings (PE) ratio for CHEESECAKE FACTORY INC/THE (CAKE) is 12.33 and the Price/Book (PB) ratio is 5.5.
Is the dividend of CHEESECAKE FACTORY INC/THE sustainable?
The dividend rating of CHEESECAKE FACTORY INC/THE (CAKE) is 6 / 10 and the dividend payout ratio is 32.74%.