CHEESECAKE FACTORY INC/THE (CAKE) Stock Fundamental Analysis
USA - NASDAQ:CAKE - US1630721017 - Common Stock
43.46 USD
-0.58 (-1.32%)
Overall CAKE gets a fundamental rating of 5 out of 10. We evaluated CAKE against 132 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of CAKE while its profitability can be described as average. CAKE is valued quite cheap, while showing a decent growth score. This is a good 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.
CAKE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.96%, CAKE is doing good in the industry, outperforming 67.42% of the companies in the same industry.
CAKE has a Return On Equity of 37.81%. This is amongst the best in the industry. CAKE outperforms 85.61% of its industry peers.
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.
CAKE had an Average Return On Invested Capital over the past 3 years of 5.05%. This is significantly below the industry average of 10.61%.
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
Looking at the Profit Margin, with a value of 4.33%, CAKE is in line with its industry, outperforming 54.55% of the companies in the same industry.
CAKE's Profit Margin has declined in the last couple of years.
CAKE's Operating Margin of 5.89% is in line compared to the rest of the industry. CAKE outperforms 40.91% 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.
CAKE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CAKE has more shares outstanding
Compared to 1 year ago, CAKE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.31 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 2.31, CAKE is in the better half of the industry, outperforming 65.15% 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 better Debt to FCF ratio (3.97) than 77.27% 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.
CAKE has a Debt to Equity ratio (1.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.92
WACC7.63%
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.
With a Current ratio value of 0.55, CAKE is not doing good in the industry: 71.97% of the companies in the same industry are doing better.
CAKE has a Quick 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 Quick ratio of 0.47. This is in the lower half of the industry: CAKE underperforms 74.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
CAKE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.06%, which is quite good.
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.
CAKE shows a small growth in Revenue. In the last year, the Revenue has grown by 4.90%.
The Revenue has been growing slightly by 7.61% on average over the past years.
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
Based on estimates for the next years, CAKE will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.12% on average per year.
The Revenue is expected to grow by 4.87% on average over the next years.
EPS Next Y11.36%
EPS Next 2Y9.33%
EPS Next 3Y9.66%
EPS Next 5Y10.12%
Revenue Next Year4.77%
Revenue Next 2Y4.86%
Revenue Next 3Y5.43%
Revenue Next 5Y4.87%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.41 indicates a reasonable valuation of CAKE.
Based on the Price/Earnings ratio, CAKE is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.47, CAKE is valued rather cheaply.
CAKE is valuated reasonably with a Price/Forward Earnings ratio of 10.57.
81.82% 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 (35.42), we can say CAKE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 10.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAKE is valued a bit cheaper than 77.27% of the companies in the same industry.
84.85% of the companies in the same industry are more expensive than CAKE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.67 | ||
| EV/EBITDA | 8.09 |
4.3 Compensation for Growth
CAKE's 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
PEG (5Y)2.01
EPS Next 2Y9.33%
EPS Next 3Y9.66%
5. Dividend
5.1 Amount
CAKE has a Yearly Dividend Yield of 2.35%.
In the last 3 months the price of CAKE has falen by -29.77%. 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 4.59, CAKE pays a bit more dividend than its industry peers.
CAKE's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
5.2 History
On average, the dividend of CAKE grows each year by 7.51%, which is quite nice.
CAKE has been paying a dividend for at least 10 years, so it has 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
CAKE pays out 32.74% of its income as dividend. This is a sustainable payout ratio.
CAKE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.74%
EPS Next 2Y9.33%
EPS Next 3Y9.66%
NASDAQ:CAKE (11/20/2025, 3:17:24 PM)
43.46
-0.58 (-1.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners112.99%
Inst Owner Change60.39%
Ins Owners8.02%
Ins Owner Change-1.25%
Market Cap2.16B
Revenue(TTM)3.71B
Net Income(TTM)160.81M
Analysts74.29
Price Target65.16 (49.93%)
Short Float %17.58%
Short Ratio5.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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)-4.12%
PT rev (3m)-3.85%
EPS NQ rev (1m)-9.05%
EPS NQ rev (3m)-9.36%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)2.27%
Revenue NQ rev (1m)-2.09%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 10.57 | ||
| P/S | 0.58 | ||
| P/FCF | 13.67 | ||
| P/OCF | 6.76 | ||
| P/B | 5.09 | ||
| P/tB | 12.5 | ||
| EV/EBITDA | 8.09 |
EPS(TTM)3.81
EY8.77%
EPS(NY)4.11
Fwd EY9.46%
FCF(TTM)3.18
FCFY7.32%
OCF(TTM)6.43
OCFY14.8%
SpS74.51
BVpS8.54
TBVpS3.48
PEG (NY)1
PEG (5Y)2.01
Graham Number27.06
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 | 2.31 |
F-Score7
WACC7.63%
ROIC/WACC0.92
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 Y11.36%
EPS Next 2Y9.33%
EPS Next 3Y9.66%
EPS Next 5Y10.12%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y6.95%
Revenue growth 5Y7.61%
Sales Q2Q%4.82%
Revenue Next Year4.77%
Revenue Next 2Y4.86%
Revenue Next 3Y5.43%
Revenue Next 5Y4.87%
EBIT growth 1Y23.32%
EBIT growth 3Y15.92%
EBIT growth 5Y8.87%
EBIT Next Year78.16%
EBIT Next 3Y27.97%
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 8 / 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 11.41 and the Price/Book (PB) ratio is 5.09.
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%.