51.09 USD
-1.14 (-2.18%)
50.76 USD
-0.33 (-0.65%)
Overall CAKE gets a fundamental rating of 5 out of 10. We evaluated CAKE against 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CAKE was profitable.
In the past year CAKE had a positive cash flow from operations.
CAKE had positive earnings in 4 of the past 5 years.
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 66.17% 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 86.47% of the companies in the same industry.
CAKE has a Return On Invested Capital of 6.99%. This is comparable to the rest of the industry: CAKE outperforms 59.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAKE is significantly below the industry average of 10.41%.
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 54.89% of the companies in the same industry.
In the last couple of years the Profit Margin of CAKE has declined.
Looking at the Operating Margin, with a value of 5.89%, CAKE is in line with its industry, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Operating Margin of CAKE has remained more or less at the same level.
Looking at the Gross Margin, with a value of 78.13%, CAKE belongs to the top of the industry, outperforming 91.73% of the companies in the same industry.
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.
The number of shares outstanding for CAKE has been increased compared to 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
CAKE has an Altman-Z score of 2.40. 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 better Altman-Z score (2.40) than 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.
Looking at the Debt to FCF ratio, with a value of 3.97, CAKE is in the better half of the industry, outperforming 78.20% 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's Debt to Equity ratio of 1.32 is in line compared 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 | 2.4 |
ROIC/WACC0.88
WACC7.95%
2.3 Liquidity
A Current Ratio of 0.55 indicates that CAKE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.55, CAKE is doing worse than 72.18% of the companies in the same industry.
A Quick Ratio of 0.47 indicates that CAKE may have some problems paying its short term obligations.
With a Quick ratio value of 0.47, CAKE is not doing good in the industry: 74.44% of the companies in the same industry are doing better.
| 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.
CAKE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.68% yearly.
Looking at the last year, CAKE shows a small growth in Revenue. The Revenue has grown by 4.90% in the last 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.
Based on estimates for the next years, CAKE will show a small growth in Revenue. The Revenue will grow by 4.87% on average per year.
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
A Price/Earnings ratio of 13.41 indicates a correct valuation of CAKE.
Compared to the rest of the industry, the Price/Earnings ratio of CAKE indicates a rather cheap valuation: CAKE is cheaper than 81.20% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.50, CAKE is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.49 indicates a correct valuation of CAKE.
CAKE's Price/Forward Earnings ratio is rather cheap when compared to the industry. CAKE is cheaper than 81.95% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CAKE to the average of the S&P500 Index (23.93), we can say CAKE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 12.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAKE is valued a bit cheaper than the industry average as 72.93% of the companies are valued more expensively.
CAKE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CAKE is cheaper than 79.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.08 | ||
| EV/EBITDA | 9.35 |
4.3 Compensation for Growth
CAKE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CAKE may justify a higher PE ratio.
PEG (NY)1.18
PEG (5Y)2.36
EPS Next 2Y9.05%
EPS Next 3Y9.62%
5. Dividend
5.1 Amount
CAKE has a Yearly Dividend Yield of 2.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.54, CAKE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, 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
32.74% of the earnings are spent on dividend by CAKE. This is a low number and sustainable payout ratio.
CAKE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.74%
EPS Next 2Y9.05%
EPS Next 3Y9.62%
51.09
-1.14 (-2.18%)
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 Cap2.55B
Revenue(TTM)3.71B
Net Income(TTM)160.81M
Analysts74.29
Price Target60.41 (18.24%)
Short Float %18.86%
Short Ratio6.82
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-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)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 12.49 | ||
| P/S | 0.69 | ||
| P/FCF | 16.08 | ||
| P/OCF | 7.95 | ||
| P/B | 5.99 | ||
| P/tB | 14.7 | ||
| EV/EBITDA | 9.35 |
EPS(TTM)3.81
EY7.46%
EPS(NY)4.09
Fwd EY8.01%
FCF(TTM)3.18
FCFY6.22%
OCF(TTM)6.43
OCFY12.58%
SpS74.46
BVpS8.53
TBVpS3.48
PEG (NY)1.18
PEG (5Y)2.36
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 | 2.4 |
F-Score7
WACC7.95%
ROIC/WACC0.88
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 6 / 10 to CHEESECAKE FACTORY INC/THE (CAKE). This can be considered as Fairly Valued.
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 13.41 and the Price/Book (PB) ratio is 5.99.
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%.