57.37 USD
-1.51 (-2.56%)
57.37 USD
0 (0%)
Overall CAKE gets a fundamental rating of 5 out of 10. We evaluated CAKE against 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 has a decent growth rate and is not valued too expensively.
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.
- CAKE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CAKE's Return On Assets of 4.96% is fine compared to the rest of the industry. CAKE outperforms 66.67% of its industry peers.
- Looking at the Return On Equity, with a value of 37.81%, CAKE belongs to the top of the industry, outperforming 87.12% of the companies in the same industry.
- CAKE has a Return On Invested Capital of 6.99%. This is in the better half of the industry: CAKE outperforms 60.61% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CAKE is significantly below the industry average of 10.36%.
- 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 57.58% of the companies in the same industry.
- CAKE's Profit Margin has declined in the last couple of years.
- CAKE has a Operating Margin (5.89%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of CAKE has remained more or less at the same level.
- CAKE has a Gross Margin of 78.13%. This is amongst the best in the industry. CAKE outperforms 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAKE is destroying value.
- Compared to 1 year ago, CAKE has more shares outstanding
- 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 2.45. 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.
- Looking at the Altman-Z score, with a value of 2.45, CAKE is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 3.97, CAKE is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
- A Debt/Equity ratio of 1.32 is on the high side and indicates that CAKE has dependencies on debt financing.
- CAKE has a Debt to Equity ratio of 1.32. This is comparable to the rest of the industry: CAKE outperforms 56.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 2.45 |
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.
- CAKE has a Current ratio of 0.55. This is in the lower half of the industry: CAKE underperforms 72.73% of its industry peers.
- 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.
- With a Quick ratio value of 0.47, CAKE is not doing good in the industry: 74.24% 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.
- The Earnings Per Share has been growing slightly by 5.68% on average over the past years.
- 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
- 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 Y11.35%
EPS Next 2Y8.95%
EPS Next 3Y9.7%
EPS Next 5Y10.12%
Revenue Next Year4.64%
Revenue Next 2Y4.64%
Revenue Next 3Y5.36%
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
- The Price/Earnings ratio is 15.06, which indicates a correct valuation of CAKE.
- Based on the Price/Earnings ratio, CAKE is valued cheaper than 81.06% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, CAKE is valued a bit cheaper.
- CAKE is valuated correctly with a Price/Forward Earnings ratio of 14.05.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CAKE indicates a somewhat cheap valuation: CAKE is cheaper than 78.79% of the companies listed in the same industry.
- CAKE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 14.05 |
4.2 Price Multiples
- 64.39% of the companies in the same industry are more expensive than CAKE, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, CAKE is valued a bit cheaper than 76.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.06 | ||
| EV/EBITDA | 10.14 |
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)1.33
PEG (5Y)2.65
EPS Next 2Y8.95%
EPS Next 3Y9.7%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.83%, CAKE has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.21, CAKE pays a bit more dividend than its industry peers.
- CAKE's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
- 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)N/A
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.
DP32.74%
EPS Next 2Y8.95%
EPS Next 3Y9.7%
CHEESECAKE FACTORY INC/THE / CAKE FAQ
What is the fundamental rating for CAKE stock?
ChartMill assigns a fundamental rating of 5 / 10 to CAKE.
What is the valuation status for CAKE stock?
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.
What is the valuation of CHEESECAKE FACTORY INC/THE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CHEESECAKE FACTORY INC/THE (CAKE) is 15.06 and the Price/Book (PB) ratio is 6.72.
Can you provide the dividend sustainability for CAKE stock?
The dividend rating of CHEESECAKE FACTORY INC/THE (CAKE) is 4 / 10 and the dividend payout ratio is 32.74%.