We assign a fundamental rating of 4 out of 10 to SHAK. SHAK was compared to 133 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 is valued quite expensive, but it does show an excellent growth.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
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.

1.2 Ratios

SHAK has a Return On Assets (2.33%) which is comparable to the rest of the industry.
The Return On Equity of SHAK (8.37%) is better than 65.41% of its industry peers.
SHAK has a worse Return On Invested Capital (2.80%) than 63.91% of its industry peers.

		Industry Rank	Sector Rank
ROA	2.33%
ROE	8.37%
ROIC	2.8%

ROA(3y)0.08%

ROA(5y)-0.81%

ROE(3y)0.21%

ROE(5y)-2.37%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

SHAK has a Profit Margin (3.10%) which is comparable to the rest of the industry.
SHAK's Profit Margin has declined in the last couple of years.
SHAK's Operating Margin of 4.31% is on the low side compared to the rest of the industry. SHAK is outperformed by 62.41% of its industry peers.
In the last couple of years the Operating Margin of SHAK has declined.
SHAK has a Gross Margin (47.53%) which is comparable to the rest of the industry.
SHAK's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	4.31%
PM (TTM)	3.1%
GM	47.53%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 5 years ago, SHAK has more shares outstanding
SHAK has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.83 indicates that SHAK is not a great score, but indicates only limited risk for bankruptcy at the moment.
SHAK has a Altman-Z score of 2.83. This is in the better half of the industry: SHAK outperforms 72.18% of its industry peers.
SHAK has a debt to FCF ratio of 4.18. This is a neutral value as SHAK would need 4.18 years to pay back of all of its debts.
The Debt to FCF ratio of SHAK (4.18) is better than 78.20% of its industry peers.
SHAK has a Debt/Equity ratio of 0.51. This is a neutral value indicating SHAK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, SHAK is in the better half of the industry, outperforming 66.17% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.51
Debt/FCF	4.18
Altman-Z	2.83

ROIC/WACC0.34

WACC8.37%

2.3 Liquidity

SHAK has a Current Ratio of 1.84. 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 1.84, SHAK belongs to the top of the industry, outperforming 81.20% of the companies in the same industry.
SHAK has a Quick Ratio of 1.81. 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 1.81 is amongst the best of the industry. SHAK outperforms 82.71% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.84
Quick Ratio	1.81

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 79.10% 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.
SHAK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.49%.
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)79.1%

EPS 3YN/A

EPS 5Y4.8%

EPS Q2Q%44%

Revenue 1Y (TTM)13.49%

Revenue growth 3Y19.18%

Revenue growth 5Y16.07%

Sales Q2Q%15.93%

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 29.10% on average per year.
The Revenue is expected to grow by 14.17% on average over the next years. This is quite good.

EPS Next Y46.17%

EPS Next 2Y28.84%

EPS Next 3Y27.97%

EPS Next 5Y29.1%

Revenue Next Year15.88%

Revenue Next 2Y14.69%

Revenue Next 3Y14.61%

Revenue Next 5Y14.17%

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 stable.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 76.88, SHAK can be considered very expensive at the moment.
SHAK's Price/Earnings ratio is in line with the industry average.
SHAK's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
Based on the Price/Forward Earnings ratio of 61.07, the valuation of SHAK can be described as expensive.
SHAK's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SHAK is more expensive than 60.90% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.26. SHAK is valued rather expensively when compared to this.

		Industry Rank	Sector Rank
PE	76.88
Fwd PE	61.07

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHAK indicates a slightly more expensive valuation: SHAK is more expensive than 72.93% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SHAK.

		Industry Rank	Sector Rank
P/FCF	62.6
EV/EBITDA	23.37

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 27.97% in the coming years.