45.4 USD
+2.26 (+5.24%)
45.75 USD
+0.35 (+0.77%)
CAKE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. While CAKE is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on CAKE.
1. Profitability
1.1 Basic Checks
CAKE had positive earnings in the past year.
CAKE had a positive operating cash flow in the past year.
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
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 Return On Equity of 37.81%. This is amongst the best in the industry. CAKE outperforms 85.71% 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 10.41%.
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
CAKE has a Profit Margin of 4.33%. This is comparable to the rest of the industry: CAKE outperforms 54.89% of its industry peers.
CAKE's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 5.89%, CAKE perfoms like the industry average, outperforming 41.35% of the companies in the same industry.
CAKE's Operating Margin has been stable in the last couple of years.
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
CAKE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CAKE has been increased compared to 1 year ago.
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 2.32 indicates that CAKE is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CAKE (2.32) is better than 64.66% of its industry peers.
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.
With a decent Debt to FCF ratio value of 3.97, CAKE is doing good in the industry, outperforming 77.44% of the companies in the same industry.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.92
WACC7.6%
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.
CAKE's Quick ratio of 0.47 is on the low side compared to the rest of the industry. CAKE is outperformed by 74.44% 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.
The Earnings Per Share has been growing slightly by 5.68% on average over the past years.
CAKE shows a small growth in Revenue. In the last year, the Revenue has grown by 4.90%.
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 Y11.36%
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
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
With a Price/Earnings ratio of 11.92, the valuation of CAKE can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CAKE indicates a rather cheap valuation: CAKE is cheaper than 84.21% of the companies listed in the same industry.
CAKE is valuated cheaply when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.04, the valuation of CAKE can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAKE indicates a rather cheap valuation: CAKE is cheaper than 82.71% of the companies listed in the same industry.
CAKE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 11.04 |
4.2 Price Multiples
74.44% of the companies in the same industry are more expensive than CAKE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CAKE is valued cheaper than 82.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.28 | ||
| EV/EBITDA | 8.3 |
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)1.05
PEG (5Y)2.1
EPS Next 2Y9.33%
EPS Next 3Y9.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.50%, CAKE has a reasonable but not impressive dividend return.
The stock price of CAKE dropped by -27.60% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CAKE's Dividend Yield is rather good when compared to the industry average which is at 6.40. CAKE pays more dividend than 80.45% of the companies in the same industry.
CAKE's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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%
45.4
+2.26 (+5.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners112.99%
Inst Owner Change60.62%
Ins Owners8.02%
Ins Owner Change-1.78%
Market Cap2.26B
Revenue(TTM)3.71B
Net Income(TTM)160.81M
Analysts74.29
Price Target60.41 (33.06%)
Short Float %17.58%
Short Ratio5.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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)-11.11%
PT rev (3m)-10.86%
EPS NQ rev (1m)-8.98%
EPS NQ rev (3m)-9.36%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)-2.11%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 11.04 | ||
| P/S | 0.61 | ||
| P/FCF | 14.28 | ||
| P/OCF | 7.06 | ||
| P/B | 5.32 | ||
| P/tB | 13.05 | ||
| EV/EBITDA | 8.3 |
EPS(TTM)3.81
EY8.39%
EPS(NY)4.11
Fwd EY9.06%
FCF(TTM)3.18
FCFY7%
OCF(TTM)6.43
OCFY14.17%
SpS74.51
BVpS8.54
TBVpS3.48
PEG (NY)1.05
PEG (5Y)2.1
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 | 2.32 |
F-Score7
WACC7.6%
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 11.92 and the Price/Book (PB) ratio is 5.32.
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%.