SHAKE SHACK INC - CLASS A (SHAK) Stock Fundamental Analysis
NYSE:SHAK - New York Stock Exchange, Inc. - US8190471016 - Common Stock - Currency: USD
SHAK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. SHAK scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SHAK is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SHAK had positive earnings in the past year.
SHAK had a positive operating cash flow in the past year.
In the past 5 years SHAK reported 4 times negative net income.
SHAK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SHAK's Return On Assets of 0.52% is on the low side compared to the rest of the industry. SHAK is outperformed by 61.83% of its industry peers.
SHAK's Return On Equity of 1.91% is in line compared to the rest of the industry. SHAK outperforms 52.67% of its industry peers.
SHAK has a Return On Invested Capital of 1.22%. This is in the lower half of the industry: SHAK underperforms 74.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 1.91% | ||
| ROIC | 1.22% |
ROA(3y)-0.32%
ROA(5y)-0.52%
ROE(3y)-1.22%
ROE(5y)-1.48%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SHAK has a Profit Margin of 0.72%. This is in the lower half of the industry: SHAK underperforms 62.60% of its industry peers.
SHAK's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 1.91%, SHAK is not doing good in the industry: 71.76% of the companies in the same industry are doing better.
SHAK's Operating Margin has declined in the last couple of years.
SHAK has a Gross Margin (45.27%) which is in line with its industry peers.
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 | 1.91% | ||
| PM (TTM) | 0.72% | ||
| GM | 45.27% |
OM growth 3YN/A
OM growth 5Y-30.73%
PM growth 3YN/A
PM growth 5Y-10.85%
GM growth 3Y2.64%
GM growth 5Y-0.84%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SHAK is destroying value.
SHAK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.49 indicates that SHAK is not in any danger for bankruptcy at the moment.
SHAK's Altman-Z score of 3.49 is fine compared to the rest of the industry. SHAK outperforms 78.63% of its industry peers.
SHAK has a debt to FCF ratio of 7.69. This is a slightly negative value and a sign of low solvency as SHAK would need 7.69 years to pay back of all of its debts.
SHAK's Debt to FCF ratio of 7.69 is fine compared to the rest of the industry. SHAK outperforms 66.41% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that SHAK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, SHAK is in the better half of the industry, outperforming 70.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 7.69 | ||
| Altman-Z | 3.49 |
ROIC/WACC0.13
WACC9.18%
2.3 Liquidity
A Current Ratio of 2.01 indicates that SHAK has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.01, SHAK belongs to the top of the industry, outperforming 86.26% of the companies in the same industry.
SHAK has a Quick Ratio of 1.98. This is a normal value and indicates that SHAK is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SHAK (1.98) is better than 87.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 152.78% over the past year.
Measured over the past 5 years, SHAK shows a small growth in Earnings Per Share. The EPS has been growing by 4.80% on average per year.
EPS 1Y (TTM)152.78%
EPS 3YN/A
EPS 5Y4.8%
EPS Q2Q%1200%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%14.83%
3.2 Future
The Earnings Per Share is expected to grow by 29.27% on average over the next years. This is a very strong growth
SHAK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.07% yearly.
EPS Next Y36.73%
EPS Next 2Y31.52%
EPS Next 3Y26.85%
EPS Next 5Y29.27%
Revenue Next Year16.21%
Revenue Next 2Y14.9%
Revenue Next 3Y13.84%
Revenue Next 5Y14.07%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 119.47 indicates a quite expensive valuation of SHAK.
Based on the Price/Earnings ratio, SHAK is valued a bit more expensive than 66.41% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. SHAK is valued rather expensively when compared to this.
SHAK is valuated quite expensively with a Price/Forward Earnings ratio of 87.38.
SHAK's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SHAK is more expensive than 67.18% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. SHAK is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 119.47 | ||
| Fwd PE | 87.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHAK is valued a bit more expensive than 77.86% of the companies in the same industry.
61.07% of the companies in the same industry are cheaper than SHAK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 137.11 | ||
| EV/EBITDA | 41.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SHAK does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as SHAK's earnings are expected to grow with 26.85% in the coming years.
PEG (NY)3.25
PEG (5Y)24.91
EPS Next 2Y31.52%
EPS Next 3Y26.85%
5. Dividend
5.1 Amount
No dividends for SHAK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
108.72
-14.89 (-12.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.26%
Inst Owner Change3.61%
Ins Owners4.67%
Ins Owner Change0.05%
Market Cap4.62B
Analysts75.33
Price Target139.16 (28%)
Short Float %10.2%
Short Ratio3.81
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)1
Avg EPS beat(2)12.06%
Min EPS beat(2)-1.29%
Max EPS beat(2)25.4%
EPS beat(4)3
Avg EPS beat(4)60.98%
Min EPS beat(4)-1.29%
Max EPS beat(4)186.66%
EPS beat(8)7
Avg EPS beat(8)65.29%
EPS beat(12)11
Avg EPS beat(12)56.81%
EPS beat(16)15
Avg EPS beat(16)67.65%
Revenue beat(2)0
Avg Revenue beat(2)-1.47%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-1.25%
Revenue beat(4)1
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)0.13%
Revenue beat(8)2
Avg Revenue beat(8)-1.28%
Revenue beat(12)2
Avg Revenue beat(12)-1.55%
Revenue beat(16)3
Avg Revenue beat(16)-1.78%
PT rev (1m)2.06%
PT rev (3m)19.45%
EPS NQ rev (1m)50.08%
EPS NQ rev (3m)52.49%
EPS NY rev (1m)9.24%
EPS NY rev (3m)11.21%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 119.47 | ||
| Fwd PE | 87.38 | ||
| P/S | 3.82 | ||
| P/FCF | 137.11 | ||
| P/OCF | 27.55 | ||
| P/B | 10.13 | ||
| P/tB | 10.13 | ||
| EV/EBITDA | 41.83 |
EPS(TTM)0.91
EY0.84%
EPS(NY)1.24
Fwd EY1.14%
FCF(TTM)0.79
FCFY0.73%
OCF(TTM)3.95
OCFY3.63%
SpS28.49
BVpS10.74
TBVpS10.74
PEG (NY)3.25
PEG (5Y)24.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 1.91% | ||
| ROCE | 1.54% | ||
| ROIC | 1.22% | ||
| ROICexc | 1.54% | ||
| ROICexgc | 1.54% | ||
| OM | 1.91% | ||
| PM (TTM) | 0.72% | ||
| GM | 45.27% | ||
| FCFM | 2.78% |
ROA(3y)-0.32%
ROA(5y)-0.52%
ROE(3y)-1.22%
ROE(5y)-1.48%
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-31.35%
ROICexc growth 3YN/A
ROICexc growth 5Y-31.35%
OM growth 3YN/A
OM growth 5Y-30.73%
PM growth 3YN/A
PM growth 5Y-10.85%
GM growth 3Y2.64%
GM growth 5Y-0.84%
F-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 7.69 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 132.35% | ||
| Cap/Sales | 11.07% | ||
| Interest Coverage | 25.08 | ||
| Cash Conversion | 134.85% | ||
| Profit Quality | 386.27% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 3.49 |
F-Score7
WACC9.18%
ROIC/WACC0.13
Cap/Depr(3y)176.03%
Cap/Depr(5y)186.65%
Cap/Sales(3y)14.33%
Cap/Sales(5y)14.82%
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 Y36.73%
EPS Next 2Y31.52%
EPS Next 3Y26.85%
EPS Next 5Y29.27%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%14.83%
Revenue Next Year16.21%
Revenue Next 2Y14.9%
Revenue Next 3Y13.84%
Revenue Next 5Y14.07%
EBIT growth 1Y524.3%
EBIT growth 3YN/A
EBIT growth 5Y-17.69%
EBIT Next Year2039.22%
EBIT Next 3Y210.31%
EBIT Next 5Y109.82%
FCF growth 1Y157.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y142.96%
OCF growth 3Y52.37%
OCF growth 5Y9.12%