52.02 USD
+0.36 (+0.7%)
51.9007 USD
-0.12 (-0.23%)
Overall CAKE gets a fundamental rating of 5 out of 10. We evaluated CAKE against 133 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of CAKE while its profitability can be described as average. CAKE is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years CAKE had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.96%, CAKE is doing good in the industry, outperforming 65.91% of the companies in the same industry.
CAKE has a better Return On Equity (37.81%) than 86.36% of its industry peers.
CAKE's Return On Invested Capital of 6.99% is in line compared to the rest of the industry. CAKE outperforms 59.09% of its industry peers.
CAKE had an Average Return On Invested Capital over the past 3 years of 5.05%. This is significantly below the industry average of 10.40%.
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
With a Profit Margin value of 4.33%, CAKE perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
CAKE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.89%, CAKE is in line with its industry, outperforming 42.42% 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.
The Gross Margin of CAKE (78.13%) is better than 91.67% 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.
Compared to 1 year ago, CAKE has more shares outstanding
Compared to 5 years ago, CAKE has more shares outstanding
CAKE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.39 indicates that CAKE is not a great score, but indicates only limited risk for bankruptcy at the moment.
CAKE's Altman-Z score of 2.39 is fine compared to the rest of the industry. CAKE outperforms 64.39% 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 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's Debt to Equity ratio of 1.32 is in line compared to the rest of the industry. CAKE outperforms 57.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.88
WACC7.94%
2.3 Liquidity
CAKE has a Current 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.
With a Current ratio value of 0.55, CAKE is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
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.
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.
The Revenue has been growing slightly by 7.61% on average over the past years.
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.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.65, CAKE is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of CAKE indicates a rather cheap valuation: CAKE is cheaper than 81.82% of the companies listed in the same industry.
CAKE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.38, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.72 indicates a correct valuation of CAKE.
80.30% of the companies in the same industry are more expensive than CAKE, based on the Price/Forward Earnings ratio.
CAKE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 12.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAKE is valued a bit cheaper than the industry average as 71.21% 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 79.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.37 | ||
| EV/EBITDA | 9.32 |
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)1.2
PEG (5Y)2.4
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.
CAKE's Dividend Yield is rather good when compared to the industry average which is at 1.47. CAKE pays more dividend than 80.30% of the companies in the same industry.
CAKE's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| 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.
The dividend of CAKE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.74%
EPS Next 2Y9.05%
EPS Next 3Y9.62%
52.02
+0.36 (+0.7%)
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 Cap2.59B
Revenue(TTM)3.71B
Net Income(TTM)160.81M
Analysts74.29
Price Target60.41 (16.13%)
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 | 13.65 | ||
| Fwd PE | 12.72 | ||
| P/S | 0.7 | ||
| P/FCF | 16.37 | ||
| P/OCF | 8.09 | ||
| P/B | 6.1 | ||
| P/tB | 14.97 | ||
| EV/EBITDA | 9.32 |
EPS(TTM)3.81
EY7.32%
EPS(NY)4.09
Fwd EY7.86%
FCF(TTM)3.18
FCFY6.11%
OCF(TTM)6.43
OCFY12.36%
SpS74.46
BVpS8.53
TBVpS3.48
PEG (NY)1.2
PEG (5Y)2.4
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 | 2.39 |
F-Score7
WACC7.94%
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 13.65 and the Price/Book (PB) ratio is 6.1.
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%.