NATHAN'S FAMOUS INC (NATH)
US6323471002 - Common Stock
We assign a fundamental rating of 6 out of 10 to NATH. NATH was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. NATH has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NATH has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year NATH was profitable.
In the past year NATH had a positive cash flow from operations.
Each year in the past 5 years NATH has been profitable.
NATH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 44.23%, NATH belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 74.78%, NATH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NATH is significantly above the industry average of 10.07%.
The last Return On Invested Capital (74.78%) for NATH is above the 3 year average (38.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 44.23% | ||
| ROE | N/A | ||
| ROIC | 74.78% |
ROA(3y)20.32%
ROA(5y)19.3%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)38.51%
ROIC(5y)32.67%
1.3 Margins
Looking at the Profit Margin, with a value of 13.85%, NATH belongs to the top of the industry, outperforming 82.84% of the companies in the same industry.
NATH's Profit Margin has improved in the last couple of years.
NATH has a better Operating Margin (23.44%) than 88.06% of its industry peers.
In the last couple of years the Operating Margin of NATH has remained more or less at the same level.
With a Gross Margin value of 38.70%, NATH is not doing good in the industry: 66.42% of the companies in the same industry are doing better.
NATH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.44% | ||
| PM (TTM) | 13.85% | ||
| GM | 38.7% |
OM growth 3Y0.06%
OM growth 5Y0.28%
PM growth 3Y4.93%
PM growth 5Y43.12%
GM growth 3Y-3.53%
GM growth 5Y0.53%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NATH is creating value.
The number of shares outstanding for NATH remains at a similar level compared to 1 year ago.
NATH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NATH has an improved debt to assets ratio.
2.2 Solvency
NATH has an Altman-Z score of 7.92. This indicates that NATH is financially healthy and has little risk of bankruptcy at the moment.
NATH has a Altman-Z score of 7.92. This is amongst the best in the industry. NATH outperforms 97.01% of its industry peers.
NATH has a debt to FCF ratio of 3.01. This is a good value and a sign of high solvency as NATH would need 3.01 years to pay back of all of its debts.
NATH has a Debt to FCF ratio of 3.01. This is amongst the best in the industry. NATH outperforms 82.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 7.92 |
ROIC/WACC8.36
WACC8.94%
2.3 Liquidity
NATH has a Current Ratio of 2.84. This indicates that NATH is financially healthy and has no problem in meeting its short term obligations.
NATH has a Current ratio of 2.84. This is amongst the best in the industry. NATH outperforms 93.28% of its industry peers.
NATH has a Quick Ratio of 2.80. This indicates that NATH is financially healthy and has no problem in meeting its short term obligations.
NATH's Quick ratio of 2.80 is amongst the best of the industry. NATH outperforms 94.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.8 |
3. Growth
3.1 Past
NATH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.08%.
NATH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 51.07% yearly.
Looking at the last year, NATH shows a small growth in Revenue. The Revenue has grown by 6.94% in the last year.
NATH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.65% yearly.
EPS 1Y (TTM)3.08%
EPS 3Y14.59%
EPS 5Y51.07%
EPS growth Q2Q-19.12%
Revenue 1Y (TTM)6.94%
Revenue growth 3Y8.19%
Revenue growth 5Y4.65%
Revenue growth Q2Q10.48%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.37 indicates a correct valuation of NATH.
Based on the Price/Earnings ratio, NATH is valued cheaply inside the industry as 81.34% of the companies are valued more expensively.
NATH is valuated rather cheaply when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.37 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NATH indicates a somewhat cheap valuation: NATH is cheaper than 64.18% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NATH indicates a rather cheap valuation: NATH is cheaper than 84.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.78 | ||
| EV/EBITDA | 9.21 |
4.3 Compensation for Growth
The excellent profitability rating of NATH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
NATH has a Yearly Dividend Yield of 3.11%.
Compared to an average industry Dividend Yield of 2.57, NATH pays a better dividend. On top of this NATH pays more dividend than 89.55% of the companies listed in the same industry.
NATH's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
5.2 History
The dividend of NATH decreases each year by -18.14%.
NATH has been paying a dividend for over 5 years, so it has already some track record.
As NATH did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-18.14%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
43.00% of the earnings are spent on dividend by NATH. This is a bit on the high side, but may be sustainable.
DP43%
EPS Next 2YN/A
EPS Next 3YN/A
NATHAN'S FAMOUS INC
NASDAQ:NATH (5/2/2024, 7:09:11 PM)
After market: 66.83 0 (0%)66.83
+2.11 (+3.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap272.67M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.37 | ||
| Fwd PE | N/A | ||
| 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)N/A
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 44.23% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.44% | ||
| PM (TTM) | 13.85% | ||
| GM | 38.7% | ||
| 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 Turnover3.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.8 | ||
| 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)3.08%
EPS 3Y14.59%
EPS 5Y
EPS growth Q2Q
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.94%
Revenue growth 3Y8.19%
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
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