SHAKE SHACK INC - CLASS A (SHAK) Stock Fundamental Analysis
NYSE:SHAK - New York Stock Exchange, Inc. - US8190471016 - Common Stock - Currency: USD
SHAK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 131 industry peers in the Hotels, Restaurants & Leisure industry. SHAK scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SHAK shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
SHAK had positive earnings in the past year.
In the past year SHAK had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SHAK reported negative net income in multiple years.
In the past 5 years SHAK always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.12%, SHAK is in line with its industry, outperforming 41.98% of the companies in the same industry.
SHAK's Return On Equity of 4.03% is in line compared to the rest of the industry. SHAK outperforms 58.02% of its industry peers.
With a Return On Invested Capital value of 2.47%, SHAK is not doing good in the industry: 70.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 4.03% | ||
| ROIC | 2.47% |
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
Looking at the Profit Margin, with a value of 1.50%, SHAK is in line with its industry, outperforming 41.22% of the companies in the same industry.
In the last couple of years the Profit Margin of SHAK has declined.
SHAK's Operating Margin of 3.87% is on the low side compared to the rest of the industry. SHAK is outperformed by 67.94% of its industry peers.
In the last couple of years the Operating Margin of SHAK has declined.
SHAK has a Gross Margin of 47.03%. This is comparable to the rest of the industry: SHAK outperforms 49.62% of its industry peers.
In the last couple of years the Gross Margin of SHAK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.87% | ||
| PM (TTM) | 1.5% | ||
| GM | 47.03% |
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%
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
SHAK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.25 indicates that SHAK is not in any danger for bankruptcy at the moment.
SHAK has a better Altman-Z score (3.25) than 74.05% of its industry peers.
SHAK has a debt to FCF ratio of 5.68. This is a neutral value as SHAK would need 5.68 years to pay back of all of its debts.
SHAK has a Debt to FCF ratio of 5.68. This is in the better half of the industry: SHAK outperforms 76.34% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that SHAK is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.52, SHAK is doing good in the industry, outperforming 67.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 5.68 | ||
| Altman-Z | 3.25 |
ROIC/WACC0.28
WACC8.78%
2.3 Liquidity
SHAK has a Current Ratio of 1.92. 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 Current ratio of 1.92 is amongst the best of the industry. SHAK outperforms 81.68% of its industry peers.
A Quick Ratio of 1.89 indicates that SHAK should not have too much problems paying its short term obligations.
SHAK has a better Quick ratio (1.89) than 83.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
SHAK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 84.75%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.80% on average over the past years.
SHAK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.13%.
The Revenue has been growing by 16.07% on average over the past years. This is quite good.
EPS 1Y (TTM)84.75%
EPS 3YN/A
EPS 5Y4.8%
EPS Q2Q%62.96%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y19.18%
Revenue growth 5Y16.07%
Sales Q2Q%12.63%
3.2 Future
The Earnings Per Share is expected to grow by 27.45% on average over the next years. This is a very strong growth
Based on estimates for the next years, SHAK will show a quite strong growth in Revenue. The Revenue will grow by 14.18% on average per year.
EPS Next Y49.54%
EPS Next 2Y37.15%
EPS Next 3Y33.11%
EPS Next 5Y27.45%
Revenue Next Year15.65%
Revenue Next 2Y14.24%
Revenue Next 3Y14.23%
Revenue Next 5Y14.18%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 102.90, SHAK can be considered very expensive at the moment.
SHAK's Price/Earnings ratio is a bit more expensive when compared to the industry. SHAK is more expensive than 61.07% of the companies in the same industry.
When comparing the Price/Earnings ratio of SHAK to the average of the S&P500 Index (26.54), we can say SHAK is valued expensively.
Based on the Price/Forward Earnings ratio of 65.52, 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 64.12% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 35.28. SHAK is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102.9 | ||
| Fwd PE | 65.52 |
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 74.81% of the companies listed in the same industry.
SHAK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 103.55 | ||
| EV/EBITDA | 30.24 |
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 33.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.08
PEG (5Y)21.46
EPS Next 2Y37.15%
EPS Next 3Y33.11%
5. Dividend
5.1 Amount
SHAK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
112.16
-0.81 (-0.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners104.91%
Inst Owner Change0.35%
Ins Owners4.39%
Ins Owner Change0.99%
Market Cap4.79B
Analysts72.9
Price Target139.69 (24.55%)
Short Float %15.15%
Short Ratio4.9
Dividend
| Industry Rank | Sector 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)-1.2%
Min EPS beat(2)-16.46%
Max EPS beat(2)14.07%
EPS beat(4)3
Avg EPS beat(4)6.65%
Min EPS beat(4)-16.46%
Max EPS beat(4)25.4%
EPS beat(8)6
Avg EPS beat(8)39.03%
EPS beat(12)10
Avg EPS beat(12)44.09%
EPS beat(16)14
Avg EPS beat(16)43.67%
Revenue beat(2)0
Avg Revenue beat(2)-2.71%
Min Revenue beat(2)-4.11%
Max Revenue beat(2)-1.31%
Revenue beat(4)0
Avg Revenue beat(4)-2.25%
Min Revenue beat(4)-4.11%
Max Revenue beat(4)-1.31%
Revenue beat(8)1
Avg Revenue beat(8)-1.74%
Revenue beat(12)2
Avg Revenue beat(12)-1.56%
Revenue beat(16)2
Avg Revenue beat(16)-1.85%
PT rev (1m)11.1%
PT rev (3m)12.14%
EPS NQ rev (1m)3.11%
EPS NQ rev (3m)11.99%
EPS NY rev (1m)1.22%
EPS NY rev (3m)5.72%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102.9 | ||
| Fwd PE | 65.52 | ||
| P/S | 3.62 | ||
| P/FCF | 103.55 | ||
| P/OCF | 26.13 | ||
| P/B | 9.69 | ||
| P/tB | 9.69 | ||
| EV/EBITDA | 30.24 |
EPS(TTM)1.09
EY0.97%
EPS(NY)1.71
Fwd EY1.53%
FCF(TTM)1.08
FCFY0.97%
OCF(TTM)4.29
OCFY3.83%
SpS31
BVpS11.58
TBVpS11.58
PEG (NY)2.08
PEG (5Y)21.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 4.03% | ||
| ROCE | 3.26% | ||
| ROIC | 2.47% | ||
| ROICexc | 3.15% | ||
| ROICexgc | 3.15% | ||
| OM | 3.87% | ||
| PM (TTM) | 1.5% | ||
| GM | 47.03% | ||
| FCFM | 3.49% |
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 Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 5.68 | ||
| Debt/EBITDA | 1.65 | ||
| Cap/Depr | 130.9% | ||
| Cap/Sales | 10.35% | ||
| Interest Coverage | 60.92 | ||
| Cash Conversion | 117.57% | ||
| Profit Quality | 232.36% | ||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.89 | ||
| Altman-Z | 3.25 |
F-Score6
WACC8.78%
ROIC/WACC0.28
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)84.75%
EPS 3YN/A
EPS 5Y4.8%
EPS Q2Q%62.96%
EPS Next Y49.54%
EPS Next 2Y37.15%
EPS Next 3Y33.11%
EPS Next 5Y27.45%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y19.18%
Revenue growth 5Y16.07%
Sales Q2Q%12.63%
Revenue Next Year15.65%
Revenue Next 2Y14.24%
Revenue Next 3Y14.23%
Revenue Next 5Y14.18%
EBIT growth 1Y181.16%
EBIT growth 3YN/A
EBIT growth 5Y7.58%
EBIT Next Year565.69%
EBIT Next 3Y109.36%
EBIT Next 5Y63.21%
FCF growth 1Y179.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y76.51%
OCF growth 3Y43.11%
OCF growth 5Y13.75%