CHEESECAKE FACTORY INC/THE (CAKE)

US1630721017 - Common Stock

36.15  -0.22 (-0.6%)

After market: 36.15 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to CAKE. CAKE was compared to 135 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 has a correct valuation and a medium growth rate.



5

1. Profitability

1.1 Basic Checks

In the past year CAKE was profitable.
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

Looking at the Return On Assets, with a value of 3.57%, CAKE is in line with its industry, outperforming 54.48% of the companies in the same industry.
The Return On Equity of CAKE (31.87%) is better than 82.09% of its industry peers.
The Return On Invested Capital of CAKE (5.42%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CAKE is significantly below the industry average of 10.25%.
The last Return On Invested Capital (5.42%) for CAKE is above the 3 year average (4.37%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.57%
ROE 31.87%
ROIC 5.42%
ROA(3y)2.29%
ROA(5y)0.25%
ROE(3y)20.5%
ROE(5y)5.82%
ROIC(3y)4.37%
ROIC(5y)N/A

1.3 Margins

CAKE has a Profit Margin (2.95%) which is in line with its industry peers.
CAKE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.35%, CAKE is doing worse than 66.42% of the companies in the same industry.
In the last couple of years the Operating Margin of CAKE has declined.
Looking at the Gross Margin, with a value of 76.64%, CAKE belongs to the top of the industry, outperforming 88.81% of the companies in the same industry.
In the last couple of years the Gross Margin of CAKE has remained more or less at the same level.
Industry RankSector Rank
OM 4.35%
PM (TTM) 2.95%
GM 76.64%
OM growth 3YN/A
OM growth 5Y-5.79%
PM growth 3YN/A
PM growth 5Y-7.04%
GM growth 3Y-0.16%
GM growth 5Y-0.13%

3

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 less shares outstanding
CAKE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CAKE has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.27 indicates that CAKE is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.27, CAKE is in the better half of the industry, outperforming 64.18% of the companies in the same industry.
The Debt to FCF ratio of CAKE is 7.21, which is on the high side as it means it would take CAKE, 7.21 years of fcf income to pay off all of its debts.
CAKE has a better Debt to FCF ratio (7.21) than 68.66% of its industry peers.
CAKE has a Debt/Equity ratio of 1.48. This is a high value indicating a heavy dependency on external financing.
CAKE has a Debt to Equity ratio (1.48) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 1.48
Debt/FCF 7.21
Altman-Z 2.27
ROIC/WACC0.69
WACC7.81%

2.3 Liquidity

CAKE has a Current Ratio of 0.46. This is a bad value and indicates that CAKE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CAKE (0.46) is worse than 80.60% of its industry peers.
A Quick Ratio of 0.37 indicates that CAKE may have some problems paying its short term obligations.
CAKE has a worse Quick ratio (0.37) than 84.33% of its industry peers.
Industry RankSector Rank
Current Ratio 0.46
Quick Ratio 0.37

5

3. Growth

3.1 Past

CAKE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 76.32%, which is quite impressive.
CAKE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.98% yearly.
The Revenue has been growing slightly by 4.13% in the past year.
Measured over the past years, CAKE shows a quite strong growth in Revenue. The Revenue has been growing by 8.08% on average per year.
EPS 1Y (TTM)76.32%
EPS 3YN/A
EPS 5Y1.98%
EPS growth Q2Q42.86%
Revenue 1Y (TTM)4.13%
Revenue growth 3Y20.15%
Revenue growth 5Y8.08%
Revenue growth Q2Q-1.77%

3.2 Future

CAKE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.28% yearly.
CAKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y16.48%
EPS Next 2Y14.67%
EPS Next 3Y14.28%
EPS Next 5YN/A
Revenue Next Year5.13%
Revenue Next 2Y5.92%
Revenue Next 3Y6.25%
Revenue Next 5Y4.95%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.49 indicates a correct valuation of CAKE.
CAKE's Price/Earnings ratio is rather cheap when compared to the industry. CAKE is cheaper than 85.07% of the companies in the same industry.
When comparing the Price/Earnings ratio of CAKE to the average of the S&P500 Index (26.42), we can say CAKE is valued slightly cheaper.
CAKE is valuated reasonably with a Price/Forward Earnings ratio of 11.58.
91.04% of the companies in the same industry are more expensive than CAKE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.74, CAKE is valued a bit cheaper.
Industry RankSector Rank
PE 13.49
Fwd PE 11.58

4.2 Price Multiples

CAKE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CAKE is cheaper than 65.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CAKE is valued a bit cheaper than 61.19% of the companies in the same industry.
Industry RankSector Rank
P/FCF 28.35
EV/EBITDA 9.36

4.3 Compensation for Growth

CAKE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CAKE's earnings are expected to grow with 14.28% in the coming years.
PEG (NY)0.82
PEG (5Y)6.82
EPS Next 2Y14.67%
EPS Next 3Y14.28%

6

5. Dividend

5.1 Amount

CAKE has a Yearly Dividend Yield of 3.07%. 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 2.48. CAKE pays more dividend than 90.30% of the companies in the same industry.
CAKE's Dividend Yield is a higher than the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 3.07%

5.2 History

The dividend of CAKE is nicely growing with an annual growth rate of 7.51%!
CAKE has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of CAKE decreased recently.
Dividend Growth(5Y)7.51%
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

CAKE pays out 52.48% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CAKE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.48%
EPS Next 2Y14.67%
EPS Next 3Y14.28%

CHEESECAKE FACTORY INC/THE

NASDAQ:CAKE (3/28/2024, 4:30:02 PM)

After market: 36.15 0 (0%)

36.15

-0.22 (-0.6%)

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 Cap1.85B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.07%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 13.49
Fwd PE 11.58
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)0.82
PEG (5Y)6.82
Profitability
Industry RankSector Rank
ROA 3.57%
ROE 31.87%
ROCE
ROIC
ROICexc
ROICexgc
OM 4.35%
PM (TTM) 2.95%
GM 76.64%
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 Turnover1.21
Health
Industry RankSector Rank
Debt/Equity 1.48
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.46
Quick Ratio 0.37
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)
Growth
EPS 1Y (TTM)76.32%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y16.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.13%
Revenue growth 3Y20.15%
Revenue growth 5Y
Revenue growth 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
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y