CHEESECAKE FACTORY INC/THE (CAKE) Stock Fundamental Analysis
USA - NASDAQ:CAKE - US1630721017 - Common Stock
55.12 USD
+0.72 (+1.32%)
55.35 USD
+0.23 (+0.42%)
We assign a fundamental rating of 5 out of 10 to CAKE. 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CAKE was profitable.
CAKE had a positive operating cash flow in the past year.
Of the past 5 years CAKE 4 years were profitable.
Each year in the past 5 years CAKE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.04%, CAKE is in the better half of the industry, outperforming 69.17% of the companies in the same industry.
Looking at the Return On Equity, with a value of 39.63%, CAKE belongs to the top of the industry, outperforming 88.72% of the companies in the same industry.
CAKE's Return On Invested Capital of 6.92% is fine compared to the rest of the industry. CAKE outperforms 60.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAKE is significantly below the industry average of 15.68%.
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 54.14% of the companies in the same industry.
CAKE's Profit Margin has declined in the last couple of years.
The Operating Margin of CAKE (5.77%) is comparable to the rest of the industry.
CAKE's Operating Margin has been stable in the last couple of years.
The Gross Margin of CAKE (77.95%) is better than 91.73% of its industry peers.
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
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.
Compared to 1 year ago, CAKE has an improved debt to assets ratio.
2.2 Solvency
CAKE has an Altman-Z score of 2.45. 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.
The Altman-Z score of CAKE (2.45) is better than 64.66% of its industry peers.
The Debt to FCF ratio of CAKE is 4.82, which is a neutral value as it means it would take CAKE, 4.82 years of fcf income to pay off all of its debts.
CAKE has a better Debt to FCF ratio (4.82) than 76.69% 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.
CAKE has a Debt to Equity ratio (1.40) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 4.82 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.82
WACC8.47%
2.3 Liquidity
CAKE has a Current 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.
Looking at the Current ratio, with a value of 0.51, CAKE is doing worse than 74.44% of the companies in the same industry.
A Quick Ratio of 0.42 indicates that CAKE may have some problems paying its short term obligations.
The Quick ratio of CAKE (0.42) is worse than 75.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.26% 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.
Looking at the last year, CAKE shows a small growth in Revenue. The Revenue has grown by 4.77% 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)23.26%
EPS 3Y17.14%
EPS 5Y5.68%
EPS Q2Q%6.42%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y6.95%
Revenue growth 5Y7.61%
Sales Q2Q%5.73%
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 11.79% 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 Y12.15%
EPS Next 2Y11.32%
EPS Next 3Y11.79%
EPS Next 5YN/A
Revenue Next Year5.38%
Revenue Next 2Y5.73%
Revenue Next 3Y5.93%
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.
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 14.86 indicates a correct valuation of CAKE.
81.20% of the companies in the same industry are more expensive than CAKE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.41. CAKE is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.93, CAKE is valued correctly.
Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio of 22.88, CAKE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 12.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAKE is valued a bit cheaper than the industry average as 66.92% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAKE indicates a somewhat cheap valuation: CAKE is cheaper than 75.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.07 | ||
| EV/EBITDA | 10.08 |
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)1.22
PEG (5Y)2.62
EPS Next 2Y11.32%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
CAKE has a Yearly Dividend Yield of 1.86%.
CAKE's Dividend Yield is a higher than the industry average which is at 3.93.
Compared to the average S&P500 Dividend Yield of 2.38, CAKE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of CAKE is nicely growing with an annual growth rate of 7.51%!
CAKE has paid a dividend for at least 10 years, which is 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
33.45% 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.
DP33.45%
EPS Next 2Y11.32%
EPS Next 3Y11.79%
55.12
+0.72 (+1.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners112.03%
Inst Owner Change2.11%
Ins Owners8.08%
Ins Owner Change-4.2%
Market Cap2.75B
Analysts74.07
Price Target67.77 (22.95%)
Short Float %18.92%
Short Ratio6.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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)0%
PT rev (3m)19.98%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)2.87%
EPS NY rev (1m)3%
EPS NY rev (3m)3.06%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 12.93 | ||
| P/S | 0.75 | ||
| P/FCF | 21.07 | ||
| P/OCF | 8.87 | ||
| P/B | 6.85 | ||
| P/tB | 18.45 | ||
| EV/EBITDA | 10.08 |
EPS(TTM)3.71
EY6.73%
EPS(NY)4.26
Fwd EY7.73%
FCF(TTM)2.62
FCFY4.75%
OCF(TTM)6.22
OCFY11.28%
SpS73.67
BVpS8.05
TBVpS2.99
PEG (NY)1.22
PEG (5Y)2.62
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
ROICexcg growth 3Y10.35%
ROICexcg 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 | 2.45 |
F-Score7
WACC8.47%
ROIC/WACC0.82
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)23.26%
EPS 3Y17.14%
EPS 5Y5.68%
EPS Q2Q%6.42%
EPS Next Y12.15%
EPS Next 2Y11.32%
EPS Next 3Y11.79%
EPS Next 5YN/A
Revenue 1Y (TTM)4.77%
Revenue growth 3Y6.95%
Revenue growth 5Y7.61%
Sales Q2Q%5.73%
Revenue Next Year5.38%
Revenue Next 2Y5.73%
Revenue Next 3Y5.93%
Revenue Next 5Y4.87%
EBIT growth 1Y27.18%
EBIT growth 3Y15.92%
EBIT growth 5Y8.87%
EBIT Next Year77.42%
EBIT Next 3Y28%
EBIT Next 5YN/A
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%