SHAKE SHACK INC - CLASS A (SHAK) Stock Fundamental Analysis
NYSE:SHAK - New York Stock Exchange, Inc. - US8190471016 - Common Stock - Currency: USD
Overall SHAK gets a fundamental rating of 4 out of 10. We evaluated SHAK against 136 industry peers in the Hotels, Restaurants & Leisure industry. The financial health of SHAK is average, but there are quite some concerns on its profitability. SHAK is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year SHAK was profitable.
In the past year SHAK had a positive cash flow from operations.
In multiple years SHAK reported negative net income over the last 5 years.
In the past 5 years SHAK always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SHAK (0.60%) is comparable to the rest of the industry.
SHAK has a Return On Equity of 2.17%. This is comparable to the rest of the industry: SHAK outperforms 55.88% of its industry peers.
With a Return On Invested Capital value of 1.78%, SHAK is not doing good in the industry: 72.06% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 2.17% | ||
| ROIC | 1.78% |
ROA(3y)0.08%
ROA(5y)-0.81%
ROE(3y)0.21%
ROE(5y)-2.37%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 0.81%, SHAK perfoms like the industry average, outperforming 40.44% of the companies in the same industry.
In the last couple of years the Profit Margin of SHAK has declined.
SHAK's Operating Margin of 2.83% is on the low side compared to the rest of the industry. SHAK is outperformed by 69.85% of its industry peers.
In the last couple of years the Operating Margin of SHAK has declined.
With a Gross Margin value of 45.94%, SHAK perfoms like the industry average, outperforming 44.12% of the companies in the same industry.
In the last couple of years the Gross Margin of SHAK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.83% | ||
| PM (TTM) | 0.81% | ||
| GM | 45.94% |
OM growth 3YN/A
OM growth 5Y-7.31%
PM growth 3YN/A
PM growth 5Y-24.54%
GM growth 3Y3.42%
GM growth 5Y0.55%
2. Health
2.1 Basic Checks
SHAK 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 SHAK has been increased compared to 1 year ago.
Compared to 5 years ago, SHAK has more shares outstanding
Compared to 1 year ago, SHAK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.79 indicates that SHAK is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.79, SHAK is doing good in the industry, outperforming 77.94% of the companies in the same industry.
The Debt to FCF ratio of SHAK is 7.27, which is on the high side as it means it would take SHAK, 7.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.27, SHAK is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
SHAK has a Debt/Equity ratio of 0.54. This is a neutral value indicating SHAK is somewhat dependend on debt financing.
SHAK has a Debt to Equity ratio of 0.54. This is in the better half of the industry: SHAK outperforms 71.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 7.27 | ||
| Altman-Z | 2.79 |
ROIC/WACC0.21
WACC8.48%
2.3 Liquidity
SHAK has a Current Ratio of 1.97. This is a normal value and indicates that SHAK is financially healthy and should not expect problems in meeting its short term obligations.
SHAK has a better Current ratio (1.97) than 84.56% of its industry peers.
SHAK has a Quick Ratio of 1.93. This is a normal value and indicates that SHAK is financially healthy and should not expect problems in meeting its short term obligations.
SHAK has a Quick ratio of 1.93. This is amongst the best in the industry. SHAK outperforms 85.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
SHAK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 152.78%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.80% on average over the past years.
The Revenue has grown by 15.18% in the past year. This is quite good.
Measured over the past years, SHAK shows a quite strong growth in Revenue. The Revenue has been growing by 16.07% on average per year.
EPS 1Y (TTM)152.78%
EPS 3YN/A
EPS 5Y4.8%
EPS Q2Q%1200%
Revenue 1Y (TTM)15.18%
Revenue growth 3Y19.18%
Revenue growth 5Y16.07%
Sales Q2Q%14.83%
3.2 Future
The Earnings Per Share is expected to grow by 30.53% on average over the next years. This is a very strong growth
Based on estimates for the next years, SHAK will show a quite strong growth in Revenue. The Revenue will grow by 14.21% on average per year.
EPS Next Y41.45%
EPS Next 2Y31.84%
EPS Next 3Y29.05%
EPS Next 5Y30.53%
Revenue Next Year16.82%
Revenue Next 2Y14.89%
Revenue Next 3Y14.71%
Revenue Next 5Y14.21%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 98.87, SHAK can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SHAK is valued a bit more expensive than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.92, SHAK is valued quite expensively.
The Price/Forward Earnings ratio is 69.89, which means the current valuation is very expensive for SHAK.
61.76% of the companies in the same industry are cheaper than SHAK, based on the Price/Forward Earnings ratio.
SHAK's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.87 | ||
| Fwd PE | 69.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHAK is valued a bit more expensive than 72.79% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SHAK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 107.32 | ||
| EV/EBITDA | 26.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SHAK's earnings are expected to grow with 29.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.38
PEG (5Y)20.62
EPS Next 2Y31.84%
EPS Next 3Y29.05%
5. Dividend
5.1 Amount
SHAK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
89.97
+1.98 (+2.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.26%
Inst Owner Change-0.03%
Ins Owners4.67%
Ins Owner Change1.36%
Market Cap3.83B
Analysts75.48
Price Target133.81 (48.73%)
Short Float %11.09%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.49%
Min EPS beat(2)3.58%
Max EPS beat(2)25.4%
EPS beat(4)3
Avg EPS beat(4)15.21%
Min EPS beat(4)-1.29%
Max EPS beat(4)33.15%
EPS beat(8)7
Avg EPS beat(8)59.81%
EPS beat(12)11
Avg EPS beat(12)53.99%
EPS beat(16)15
Avg EPS beat(16)63.25%
Revenue beat(2)0
Avg Revenue beat(2)-1.78%
Min Revenue beat(2)-1.86%
Max Revenue beat(2)-1.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)-1.25%
Revenue beat(8)2
Avg Revenue beat(8)-1.28%
Revenue beat(12)2
Avg Revenue beat(12)-1.57%
Revenue beat(16)3
Avg Revenue beat(16)-1.78%
PT rev (1m)-4.88%
PT rev (3m)-2.38%
EPS NQ rev (1m)-3.68%
EPS NQ rev (3m)-10.21%
EPS NY rev (1m)3.46%
EPS NY rev (3m)11.18%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.87 | ||
| Fwd PE | 69.89 | ||
| P/S | 3.05 | ||
| P/FCF | 107.32 | ||
| P/OCF | 22.36 | ||
| P/B | 8.14 | ||
| P/tB | 8.14 | ||
| EV/EBITDA | 26.7 |
EPS(TTM)0.91
EY1.01%
EPS(NY)1.29
Fwd EY1.43%
FCF(TTM)0.84
FCFY0.93%
OCF(TTM)4.02
OCFY4.47%
SpS29.45
BVpS11.05
TBVpS11.05
PEG (NY)2.38
PEG (5Y)20.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 2.17% | ||
| ROCE | 2.35% | ||
| ROIC | 1.78% | ||
| ROICexc | 2.26% | ||
| ROICexgc | 2.26% | ||
| OM | 2.83% | ||
| PM (TTM) | 0.81% | ||
| GM | 45.94% | ||
| FCFM | 2.85% |
ROA(3y)0.08%
ROA(5y)-0.81%
ROE(3y)0.21%
ROE(5y)-2.37%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-0.73%
ROICexc growth 3YN/A
ROICexc growth 5Y-0.73%
OM growth 3YN/A
OM growth 5Y-7.31%
PM growth 3YN/A
PM growth 5Y-24.54%
GM growth 3Y3.42%
GM growth 5Y0.55%
F-Score6
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 7.27 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 132.24% | ||
| Cap/Sales | 10.82% | ||
| Interest Coverage | 40.14 | ||
| Cash Conversion | 124.14% | ||
| Profit Quality | 349.33% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.93 | ||
| Altman-Z | 2.79 |
F-Score6
WACC8.48%
ROIC/WACC0.21
Cap/Depr(3y)162.75%
Cap/Depr(5y)160.36%
Cap/Sales(3y)13.36%
Cap/Sales(5y)13.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)152.78%
EPS 3YN/A
EPS 5Y4.8%
EPS Q2Q%1200%
EPS Next Y41.45%
EPS Next 2Y31.84%
EPS Next 3Y29.05%
EPS Next 5Y30.53%
Revenue 1Y (TTM)15.18%
Revenue growth 3Y19.18%
Revenue growth 5Y16.07%
Sales Q2Q%14.83%
Revenue Next Year16.82%
Revenue Next 2Y14.89%
Revenue Next 3Y14.71%
Revenue Next 5Y14.21%
EBIT growth 1Y297.2%
EBIT growth 3YN/A
EBIT growth 5Y7.58%
EBIT Next Year554.21%
EBIT Next 3Y106.94%
EBIT Next 5Y65.44%
FCF growth 1Y354.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y29.53%
OCF growth 3Y43.11%
OCF growth 5Y13.75%