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SHAKE SHACK INC - CLASS A (SHAK) Stock Fundamental Analysis

NYSE:SHAK - New York Stock Exchange, Inc. - US8190471016 - Common Stock - Currency: USD

125.53  +7.91 (+6.73%)

Fundamental Rating

4

Overall SHAK gets a fundamental rating of 4 out of 10. We evaluated SHAK against 134 industry peers in the Hotels, Restaurants & Leisure industry. While SHAK seems to be doing ok healthwise, there are quite some concerns on its profitability. SHAK is valued quite expensively, but it does show have an excellent growth rating.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year SHAK was profitable.
SHAK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SHAK reported negative net income in multiple years.
Each year in the past 5 years SHAK had a positive operating cash flow.
SHAK Yearly Net Income VS EBIT VS OCF VS FCFSHAK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M 150M

1.2 Ratios

The Return On Assets of SHAK (0.72%) is worse than 60.45% of its industry peers.
SHAK has a Return On Equity of 2.62%. This is comparable to the rest of the industry: SHAK outperforms 56.72% of its industry peers.
SHAK's Return On Invested Capital of 1.96% is on the low side compared to the rest of the industry. SHAK is outperformed by 72.39% of its industry peers.
Industry RankSector Rank
ROA 0.72%
ROE 2.62%
ROIC 1.96%
ROA(3y)0.08%
ROA(5y)-0.81%
ROE(3y)0.21%
ROE(5y)-2.37%
ROIC(3y)N/A
ROIC(5y)N/A
SHAK Yearly ROA, ROE, ROICSHAK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 -10

1.3 Margins

With a Profit Margin value of 0.97%, SHAK is not doing good in the industry: 61.19% of the companies in the same industry are doing better.
SHAK's Profit Margin has declined in the last couple of years.
SHAK's Operating Margin of 3.10% is on the low side compared to the rest of the industry. SHAK is outperformed by 70.15% of its industry peers.
In the last couple of years the Operating Margin of SHAK has declined.
The Gross Margin of SHAK (46.38%) is comparable to the rest of the industry.
SHAK's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 3.1%
PM (TTM) 0.97%
GM 46.38%
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%
SHAK Yearly Profit, Operating, Gross MarginsSHAK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40

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6

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.
SHAK has more shares outstanding than it did 1 year ago.
SHAK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SHAK has an improved debt to assets ratio.
SHAK Yearly Shares OutstandingSHAK Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
SHAK Yearly Total Debt VS Total AssetsSHAK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 3.37 indicates that SHAK is not in any danger for bankruptcy at the moment.
SHAK has a better Altman-Z score (3.37) than 79.85% of its industry peers.
SHAK has a debt to FCF ratio of 6.58. This is a slightly negative value and a sign of low solvency as SHAK would need 6.58 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.58, SHAK is doing good in the industry, outperforming 70.90% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that SHAK is somewhat dependend on debt financing.
SHAK's Debt to Equity ratio of 0.54 is fine compared to the rest of the industry. SHAK outperforms 70.15% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 6.58
Altman-Z 3.37
ROIC/WACC0.23
WACC8.71%
SHAK Yearly LT Debt VS Equity VS FCFSHAK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M

2.3 Liquidity

SHAK has a Current Ratio of 1.91. This is a normal value and indicates that SHAK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.91, SHAK belongs to the top of the industry, outperforming 82.09% of the companies in the same industry.
SHAK has a Quick Ratio of 1.88. 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 (1.88) is better than 83.58% of its industry peers.
Industry RankSector Rank
Current Ratio 1.91
Quick Ratio 1.88
SHAK Yearly Current Assets VS Current LiabilitesSHAK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

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7

3. Growth

3.1 Past

SHAK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 84.00%, which is quite impressive.
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.
The Revenue has grown by 14.07% in the past year. This is quite good.
SHAK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.07% yearly.
EPS 1Y (TTM)84%
EPS 3YN/A
EPS 5Y4.8%
EPS Q2Q%7.69%
Revenue 1Y (TTM)14.07%
Revenue growth 3Y19.18%
Revenue growth 5Y16.07%
Sales Q2Q%10.46%

3.2 Future

Based on estimates for the next years, SHAK will show a very strong growth in Earnings Per Share. The EPS will grow by 30.53% on average per year.
SHAK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.21% yearly.
EPS Next Y47.13%
EPS Next 2Y36.14%
EPS Next 3Y32.1%
EPS Next 5Y30.53%
Revenue Next Year15.26%
Revenue Next 2Y14.11%
Revenue Next 3Y13.99%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
SHAK Yearly Revenue VS EstimatesSHAK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1B 2B 3B
SHAK Yearly EPS VS EstimatesSHAK Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 1 2 3 4

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1

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 136.45, SHAK can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SHAK indicates a slightly more expensive valuation: SHAK is more expensive than 63.43% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. SHAK is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 74.42, the valuation of SHAK can be described as expensive.
Based on the Price/Forward Earnings ratio, SHAK is valued a bit more expensive than the industry average as 65.67% of the companies are valued more cheaply.
SHAK's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.77.
Industry RankSector Rank
PE 136.45
Fwd PE 74.42
SHAK Price Earnings VS Forward Price EarningsSHAK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

SHAK's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SHAK is more expensive than 76.12% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SHAK is valued a bit more expensive than 61.94% of the companies in the same industry.
Industry RankSector Rank
P/FCF 134.19
EV/EBITDA 34.67
SHAK Per share dataSHAK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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 32.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.89
PEG (5Y)28.45
EPS Next 2Y36.14%
EPS Next 3Y32.1%

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0

5. Dividend

5.1 Amount

SHAK does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SHAKE SHACK INC - CLASS A

NYSE:SHAK (5/27/2025, 12:52:01 PM)

125.53

+7.91 (+6.73%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)05-01 2025-05-01/bmo
Earnings (Next)07-30 2025-07-30/bmo
Inst Owners101.26%
Inst Owner Change4.13%
Ins Owners4.67%
Ins Owner Change1.53%
Market Cap5.36B
Analysts76.13
Price Target111.92 (-10.84%)
Short Float %10.98%
Short Ratio2.67
Dividend
Industry RankSector 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)-6.44%
Min EPS beat(2)-16.46%
Max EPS beat(2)3.58%
EPS beat(4)2
Avg EPS beat(4)2.81%
Min EPS beat(4)-16.46%
Max EPS beat(4)25.4%
EPS beat(8)6
Avg EPS beat(8)46.76%
EPS beat(12)10
Avg EPS beat(12)51.25%
EPS beat(16)14
Avg EPS beat(16)53.19%
Revenue beat(2)0
Avg Revenue beat(2)-2.99%
Min Revenue beat(2)-4.11%
Max Revenue beat(2)-1.86%
Revenue beat(4)0
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-4.11%
Max Revenue beat(4)-1.25%
Revenue beat(8)1
Avg Revenue beat(8)-1.93%
Revenue beat(12)2
Avg Revenue beat(12)-1.86%
Revenue beat(16)3
Avg Revenue beat(16)-1.67%
PT rev (1m)-16.35%
PT rev (3m)-19.57%
EPS NQ rev (1m)5.7%
EPS NQ rev (3m)3.73%
EPS NY rev (1m)4.02%
EPS NY rev (3m)7.61%
Revenue NQ rev (1m)-1.61%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)-0.94%
Revenue NY rev (3m)-0.74%
Valuation
Industry RankSector Rank
PE 136.45
Fwd PE 74.42
P/S 4.17
P/FCF 134.19
P/OCF 31.19
P/B 11.32
P/tB 11.32
EV/EBITDA 34.67
EPS(TTM)0.92
EY0.73%
EPS(NY)1.69
Fwd EY1.34%
FCF(TTM)0.94
FCFY0.75%
OCF(TTM)4.02
OCFY3.21%
SpS30.07
BVpS11.09
TBVpS11.09
PEG (NY)2.89
PEG (5Y)28.45
Profitability
Industry RankSector Rank
ROA 0.72%
ROE 2.62%
ROCE 2.59%
ROIC 1.96%
ROICexc 2.47%
ROICexgc 2.47%
OM 3.1%
PM (TTM) 0.97%
GM 46.38%
FCFM 3.11%
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 RankSector Rank
Debt/Equity 0.54
Debt/FCF 6.58
Debt/EBITDA 1.8
Cap/Depr 127.25%
Cap/Sales 10.27%
Interest Coverage 55.28
Cash Conversion 119.81%
Profit Quality 321.58%
Current Ratio 1.91
Quick Ratio 1.88
Altman-Z 3.37
F-Score6
WACC8.71%
ROIC/WACC0.23
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)84%
EPS 3YN/A
EPS 5Y4.8%
EPS Q2Q%7.69%
EPS Next Y47.13%
EPS Next 2Y36.14%
EPS Next 3Y32.1%
EPS Next 5Y30.53%
Revenue 1Y (TTM)14.07%
Revenue growth 3Y19.18%
Revenue growth 5Y16.07%
Sales Q2Q%10.46%
Revenue Next Year15.26%
Revenue Next 2Y14.11%
Revenue Next 3Y13.99%
Revenue Next 5Y14.21%
EBIT growth 1Y231.93%
EBIT growth 3YN/A
EBIT growth 5Y7.58%
EBIT Next Year550.21%
EBIT Next 3Y107.28%
EBIT Next 5Y65.44%
FCF growth 1Y166.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y93.83%
OCF growth 3Y43.11%
OCF growth 5Y13.75%