50.48 USD
+0.47 (+0.94%)
50.4219 USD
-0.06 (-0.12%)
Taking everything into account, CAKE scores 5 out of 10 in our fundamental rating. CAKE was compared to 133 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
In the past year CAKE was profitable.
CAKE had a positive operating cash flow in the past year.
CAKE had positive earnings in 4 of the past 5 years.
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 66.17% of the companies in the same industry.
CAKE has a better Return On Equity (37.81%) than 86.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.99%, CAKE is in line with its industry, outperforming 59.40% 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 10.39%.
The last Return On Invested Capital (6.99%) for CAKE is above the 3 year average (5.05%), which is a sign of increasing profitability.
| 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 57.14% of the companies in the same industry.
In the last couple of years the Profit Margin of CAKE has declined.
CAKE has a Operating Margin (5.89%) which is in line with its industry peers.
In the last couple of years the Operating Margin of CAKE has remained more or less at the same level.
The Gross Margin of CAKE (78.13%) is better than 91.73% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CAKE 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.
Compared to 1 year ago, CAKE has an improved debt to assets ratio.
2.2 Solvency
CAKE has an Altman-Z score of 2.37. This is not the best score and indicates that CAKE is in the grey zone with still only limited risk for bankruptcy at the moment.
CAKE's Altman-Z score of 2.37 is fine compared to the rest of the industry. CAKE outperforms 65.41% of its industry peers.
The Debt to FCF ratio of CAKE is 3.97, which is a good value as it means it would take CAKE, 3.97 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CAKE (3.97) is better than 78.20% 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 of 1.32. This is comparable to the rest of the industry: CAKE outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 2.37 |
ROIC/WACC0.87
WACC8.05%
2.3 Liquidity
A Current Ratio of 0.55 indicates that CAKE may have some problems paying its short term obligations.
CAKE has a Current ratio of 0.55. This is in the lower half of the industry: CAKE underperforms 72.18% of its industry peers.
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.
The Quick ratio of CAKE (0.47) is worse than 74.44% 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.
CAKE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.68% yearly.
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
The Earnings Per Share is expected to grow by 10.12% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.87% on average over the next years.
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.
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
CAKE is valuated correctly with a Price/Earnings ratio of 13.25.
CAKE's Price/Earnings ratio is rather cheap when compared to the industry. CAKE is cheaper than 81.95% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. CAKE is valued rather cheaply when compared to this.
CAKE is valuated correctly with a Price/Forward Earnings ratio of 12.34.
CAKE's Price/Forward Earnings ratio is rather cheap when compared to the industry. CAKE is cheaper than 82.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, CAKE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.25 | ||
| Fwd PE | 12.34 |
4.2 Price Multiples
CAKE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CAKE is cheaper than 72.18% of the companies in the same industry.
CAKE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CAKE is cheaper than 80.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.89 | ||
| EV/EBITDA | 9.01 |
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)1.17
PEG (5Y)2.33
EPS Next 2Y9.05%
EPS Next 3Y9.62%
5. Dividend
5.1 Amount
CAKE has a Yearly Dividend Yield of 2.09%.
Compared to an average industry Dividend Yield of 1.66, CAKE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, CAKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
5.2 History
The dividend of CAKE is nicely growing with an annual growth rate of 7.51%!
CAKE has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of CAKE decreased 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.
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%
50.48
+0.47 (+0.94%)
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 Cap2.52B
Revenue(TTM)3.71B
Net Income(TTM)160.81M
Analysts74.29
Price Target60.23 (19.31%)
Short Float %18.65%
Short Ratio6.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
Yearly Dividend1.04
Dividend Growth(5Y)7.51%
DP32.74%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
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)-0.29%
PT rev (3m)-11.12%
EPS NQ rev (1m)-0.39%
EPS NQ rev (3m)-9.63%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-2.12%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.25 | ||
| Fwd PE | 12.34 | ||
| P/S | 0.68 | ||
| P/FCF | 15.89 | ||
| P/OCF | 7.85 | ||
| P/B | 5.91 | ||
| P/tB | 14.52 | ||
| EV/EBITDA | 9.01 |
EPS(TTM)3.81
EY7.55%
EPS(NY)4.09
Fwd EY8.1%
FCF(TTM)3.18
FCFY6.29%
OCF(TTM)6.43
OCFY12.73%
SpS74.46
BVpS8.53
TBVpS3.48
PEG (NY)1.17
PEG (5Y)2.33
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 | 2.37 |
F-Score7
WACC8.05%
ROIC/WACC0.87
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 Year77.15%
EBIT Next 3Y27.61%
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.
What is the valuation status for CAKE stock?
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.
What is the valuation of CHEESECAKE FACTORY INC/THE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CHEESECAKE FACTORY INC/THE (CAKE) is 13.25 and the Price/Book (PB) ratio is 5.91.
Can you provide the dividend sustainability for CAKE stock?
The dividend rating of CHEESECAKE FACTORY INC/THE (CAKE) is 6 / 10 and the dividend payout ratio is 32.74%.