46.98 USD
-0.8 (-1.67%)
46.6711 USD
-0.31 (-0.66%)
Overall CAKE gets a fundamental rating of 5 out of 10. We evaluated CAKE against 132 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 valued quite cheap, while showing a decent growth score. This is a good combination!
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.
CAKE had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CAKE had a positive operating cash flow.
1.2 Ratios
CAKE has a better Return On Assets (4.96%) than 66.67% of its industry peers.
CAKE has a Return On Equity of 37.81%. This is amongst the best in the industry. CAKE outperforms 86.36% of its industry peers.
The Return On Invested Capital of CAKE (6.99%) 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 10.42%.
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 55.30% of its industry peers.
In the last couple of years the Profit Margin of CAKE has declined.
The Operating Margin of CAKE (5.89%) is comparable to the rest of the industry.
CAKE's Operating Margin has been stable in the last couple of years.
CAKE has a Gross Margin of 78.13%. This is amongst the best in the industry. CAKE outperforms 91.67% of its industry peers.
CAKE's Gross Margin has been stable in the last couple of years.
| 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
CAKE has more shares outstanding than it did 5 years ago.
CAKE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.35 indicates that CAKE is not a great score, but indicates only limited risk for bankruptcy at the moment.
CAKE has a better Altman-Z score (2.35) than 63.64% 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 78.03% 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 | 2.35 |
ROIC/WACC0.91
WACC7.67%
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 71.97% of the companies in the same industry.
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 has a Quick ratio of 0.47. This is in the lower half of the industry: CAKE underperforms 75.00% 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.
The Earnings Per Share has been growing slightly by 5.68% on average over the past years.
Looking at the last year, CAKE shows a small growth in Revenue. The Revenue has grown by 4.90% in the last year.
Measured over the past years, CAKE shows a small growth in Revenue. The Revenue has been growing by 7.61% on average per year.
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 Y11.36%
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
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
The Price/Earnings ratio is 12.33, which 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 82.58% of the companies listed in the same industry.
CAKE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.46.
The Price/Forward Earnings ratio is 11.43, which indicates a very decent valuation of CAKE.
Based on the Price/Forward Earnings ratio, CAKE is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.10. CAKE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 11.43 |
4.2 Price Multiples
CAKE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CAKE is cheaper than 72.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CAKE is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.79 | ||
| EV/EBITDA | 8.67 |
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)1.09
PEG (5Y)2.17
EPS Next 2Y9.33%
EPS Next 3Y9.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.26%, CAKE has a reasonable but not impressive dividend return.
In the last 3 months the price of CAKE has falen by -22.51%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 7.72, CAKE pays a better dividend. On top of this CAKE pays more dividend than 80.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, CAKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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
32.74% 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.
DP32.74%
EPS Next 2Y9.33%
EPS Next 3Y9.66%
46.98
-0.8 (-1.67%)
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 Cap2.34B
Revenue(TTM)3.71B
Net Income(TTM)160.81M
Analysts74.29
Price Target60.41 (28.59%)
Short Float %19.15%
Short Ratio6.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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)-9.19%
EPS NQ rev (3m)-9.27%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)-2.12%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 11.43 | ||
| P/S | 0.63 | ||
| P/FCF | 14.79 | ||
| P/OCF | 7.31 | ||
| P/B | 5.5 | ||
| P/tB | 13.52 | ||
| EV/EBITDA | 8.67 |
EPS(TTM)3.81
EY8.11%
EPS(NY)4.11
Fwd EY8.75%
FCF(TTM)3.18
FCFY6.76%
OCF(TTM)6.43
OCFY13.68%
SpS74.46
BVpS8.53
TBVpS3.48
PEG (NY)1.09
PEG (5Y)2.17
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 | 2.35 |
F-Score7
WACC7.67%
ROIC/WACC0.91
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 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 12.33 and the Price/Book (PB) ratio is 5.5.
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%.