SHAKE SHACK INC - CLASS A (SHAK)
US8190471016 - Common Stock
Taking everything into account, SHAK scores 4 out of 10 in our fundamental rating. SHAK was compared to 135 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 shows excellent growth, but is valued quite expensive already.
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.
SHAK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.47%, SHAK perfoms like the industry average, outperforming 41.79% of the companies in the same industry.
With a Return On Equity value of 5.32%, SHAK perfoms like the industry average, outperforming 56.72% of the companies in the same industry.
SHAK has a Return On Invested Capital of 0.65%. This is in the lower half of the industry: SHAK underperforms 76.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 5.32% | ||
| ROIC | 0.65% |
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
The Profit Margin of SHAK (2.11%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SHAK has declined.
The Operating Margin of SHAK (1.06%) is worse than 76.87% of its industry peers.
SHAK's Operating Margin has declined in the last couple of years.
SHAK has a Gross Margin of 44.55%. This is in the lower half of the industry: SHAK underperforms 60.45% of its industry peers.
SHAK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.06% | ||
| PM (TTM) | 2.11% | ||
| GM | 44.55% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHAK is destroying value.
Compared to 1 year ago, SHAK has more shares outstanding
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.
SHAK has a better Altman-Z score (2.79) than 79.10% of its industry peers.
SHAK has a Debt/Equity ratio of 0.55. This is a neutral value indicating SHAK is somewhat dependend on debt financing.
The Debt to Equity ratio of SHAK (0.55) is better than 68.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.79 |
ROIC/WACC0.08
WACC8.33%
2.3 Liquidity
SHAK has a Current Ratio of 2.02. This indicates that SHAK is financially healthy and has no problem in meeting its short term obligations.
SHAK has a Current ratio of 2.02. This is amongst the best in the industry. SHAK outperforms 83.58% of its industry peers.
SHAK has a Quick Ratio of 1.99. This is a normal value and indicates that SHAK is financially healthy and should not expect problems in meeting its short term obligations.
SHAK's Quick ratio of 1.99 is amongst the best of the industry. SHAK outperforms 85.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 484.62% over the past year.
SHAK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.70% yearly.
Looking at the last year, SHAK shows a quite strong growth in Revenue. The Revenue has grown by 18.34% in the last year.
Measured over the past years, SHAK shows a quite strong growth in Revenue. The Revenue has been growing by 18.81% on average per year.
EPS 1Y (TTM)484.62%
EPS 3YN/A
EPS 5Y-12.7%
EPS Q2Q%1400%
Revenue 1Y (TTM)18.34%
Revenue growth 3Y27.65%
Revenue growth 5Y18.81%
Sales Q2Q%14.7%
3.2 Future
SHAK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 49.55% yearly.
Based on estimates for the next years, SHAK will show a quite strong growth in Revenue. The Revenue will grow by 14.22% on average per year.
EPS Next Y110.1%
EPS Next 2Y69.47%
EPS Next 3Y54.93%
EPS Next 5Y49.55%
Revenue Next Year15.59%
Revenue Next 2Y15.33%
Revenue Next 3Y14.74%
Revenue Next 5Y14.22%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 178.00, which means the current valuation is very expensive for SHAK.
SHAK's Price/Earnings ratio is a bit more expensive when compared to the industry. SHAK is more expensive than 68.66% of the companies in the same industry.
When comparing the Price/Earnings ratio of SHAK to the average of the S&P500 Index (28.39), we can say SHAK is valued expensively.
SHAK is valuated quite expensively with a Price/Forward Earnings ratio of 86.08.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SHAK indicates a slightly more expensive valuation: SHAK is more expensive than 66.42% of the companies listed in the same industry.
SHAK's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 19.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 178 | ||
| Fwd PE | 86.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHAK is valued a bit more expensive than the industry average as 79.10% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 34.63 |
4.3 Compensation for Growth
SHAK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as SHAK's earnings are expected to grow with 54.93% in the coming years.
PEG (NY)1.62
PEG (5Y)N/A
EPS Next 2Y69.47%
EPS Next 3Y54.93%
5. Dividend
5.1 Amount
SHAK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SHAKE SHACK INC - CLASS A
NYSE:SHAK (6/14/2024, 7:04:00 PM)
After market: 89 0 (0%)89
-3.99 (-4.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.78B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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PT rev (1m)
PT rev (3m)
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EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 178 | ||
| Fwd PE | 86.08 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 5.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.06% | ||
| PM (TTM) | 2.11% | ||
| GM | 44.55% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)484.62%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y110.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.34%
Revenue growth 3Y27.65%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
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