CHEESECAKE FACTORY INC/THE (CAKE) Stock Fundamental Analysis
USA - NASDAQ:CAKE - US1630721017 - Common Stock
46.5901 USD
+0.58 (+1.26%)
We assign a fundamental rating of 5 out of 10 to CAKE. CAKE was compared to 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. CAKE may be a bit undervalued, certainly considering the very reasonable score on growth
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 5.04%, CAKE is doing good in the industry, outperforming 67.42% of the companies in the same industry.
With an excellent Return On Equity value of 39.63%, CAKE belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
CAKE has a Return On Invested Capital (6.92%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for CAKE is significantly below the industry average of 10.74%.
The 3 year average ROIC (5.05%) for CAKE is below the current ROIC(6.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.04% | ||
| ROE | 39.63% | ||
| ROIC | 6.92% |
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.
With a Operating Margin value of 5.77%, CAKE perfoms like the industry average, outperforming 40.15% of the companies in the same industry.
CAKE's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 77.95%, CAKE belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
CAKE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.77% | ||
| PM (TTM) | 4.33% | ||
| GM | 77.95% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAKE is destroying value.
CAKE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CAKE has more shares outstanding
The debt/assets ratio for CAKE has been reduced compared to a year ago.
2.2 Solvency
CAKE has an Altman-Z score of 2.36. 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 has a Altman-Z score of 2.36. This is in the better half of the industry: CAKE outperforms 66.67% of its industry peers.
CAKE has a debt to FCF ratio of 4.82. This is a neutral value as CAKE would need 4.82 years to pay back of all of its debts.
CAKE has a Debt to FCF ratio of 4.82. This is in the better half of the industry: CAKE outperforms 75.76% of its industry peers.
A Debt/Equity ratio of 1.40 is on the high side and indicates that CAKE has dependencies on debt financing.
With a Debt to Equity ratio value of 1.40, CAKE perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 4.82 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.9
WACC7.67%
2.3 Liquidity
A Current Ratio of 0.51 indicates that CAKE may have some problems paying its short term obligations.
CAKE has a Current ratio of 0.51. This is in the lower half of the industry: CAKE underperforms 74.24% of its industry peers.
CAKE has a Quick Ratio of 0.51. 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 (0.42) is worse than 76.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.42 |
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.
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 Y11.36%
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
CAKE is valuated correctly with a Price/Earnings ratio of 12.23.
CAKE's Price/Earnings ratio is rather cheap when compared to the industry. CAKE is cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. CAKE is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.33 indicates a reasonable valuation of CAKE.
Based on the Price/Forward Earnings ratio, CAKE is valued cheaply inside the industry as 82.58% of the companies are valued more expensively.
CAKE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.23 | ||
| Fwd PE | 11.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAKE is valued a bit cheaper than 70.45% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CAKE is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.81 | ||
| EV/EBITDA | 8.76 |
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)2.15
EPS Next 2Y9.33%
EPS Next 3Y9.66%
5. Dividend
5.1 Amount
CAKE has a Yearly Dividend Yield of 2.30%.
In the last 3 months the price of CAKE has falen by -26.96%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CAKE's Dividend Yield is a higher than the industry average which is at 4.34.
CAKE's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
5.2 History
On average, the dividend of CAKE grows each year by 7.51%, which is quite nice.
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
33.45% 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.
DP33.45%
EPS Next 2Y9.33%
EPS Next 3Y9.66%
NASDAQ:CAKE (11/13/2025, 9:37:57 AM)
46.5901
+0.58 (+1.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners112.99%
Inst Owner Change-1.52%
Ins Owners8.02%
Ins Owner Change-1.06%
Market Cap2.32B
Revenue(TTM)3.71B
Net Income(TTM)158.90M
Analysts74.29
Price Target65.16 (39.86%)
Short Float %20.32%
Short Ratio7.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend1.04
Dividend Growth(5Y)7.51%
DP33.45%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.44%
Min EPS beat(2)6.79%
Max EPS beat(2)12.08%
EPS beat(4)4
Avg EPS beat(4)11.76%
Min EPS beat(4)6.79%
Max EPS beat(4)16.98%
EPS beat(8)7
Avg EPS beat(8)7.88%
EPS beat(12)9
Avg EPS beat(12)-3.74%
EPS beat(16)9
Avg EPS beat(16)-7.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-1.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.57%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)-1.06%
Revenue beat(8)0
Avg Revenue beat(8)-2.03%
Revenue beat(12)0
Avg Revenue beat(12)-2.41%
Revenue beat(16)0
Avg Revenue beat(16)-2.29%
PT rev (1m)-4.12%
PT rev (3m)-3.85%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)0.7%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)2.27%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.23 | ||
| Fwd PE | 11.33 | ||
| P/S | 0.63 | ||
| P/FCF | 17.81 | ||
| P/OCF | 7.49 | ||
| P/B | 5.79 | ||
| P/tB | 15.59 | ||
| EV/EBITDA | 8.76 |
EPS(TTM)3.81
EY8.18%
EPS(NY)4.11
Fwd EY8.82%
FCF(TTM)2.62
FCFY5.61%
OCF(TTM)6.22
OCFY13.34%
SpS73.67
BVpS8.05
TBVpS2.99
PEG (NY)1.08
PEG (5Y)2.15
Graham Number26.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.04% | ||
| ROE | 39.63% | ||
| ROCE | 8.76% | ||
| ROIC | 6.92% | ||
| ROICexc | 7.38% | ||
| ROICexgc | 8.3% | ||
| OM | 5.77% | ||
| PM (TTM) | 4.33% | ||
| GM | 77.95% | ||
| FCFM | 3.55% |
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 Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 4.82 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 171.33% | ||
| Cap/Sales | 4.89% | ||
| Interest Coverage | 27.39 | ||
| Cash Conversion | 97.89% | ||
| Profit Quality | 82% | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 2.36 |
F-Score7
WACC7.67%
ROIC/WACC0.9
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 1Y27.18%
EBIT growth 3Y15.92%
EBIT growth 5Y8.87%
EBIT Next Year78.16%
EBIT Next 3Y27.97%
EBIT Next 5Y21.97%
FCF growth 1Y180.82%
FCF growth 3Y-9.76%
FCF growth 5Y-5.64%
OCF growth 1Y76.03%
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 12.23 and the Price/Book (PB) ratio is 5.79.
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 33.45%.