SHAKE SHACK INC - CLASS A (SHAK) Stock Fundamental Analysis
USA - NYSE:SHAK - US8190471016 - Common Stock
96.79 USD
+2.24 (+2.37%)
96.75 USD
-0.04 (-0.04%)
Taking everything into account, SHAK scores 4 out of 10 in our fundamental rating. SHAK was compared to 135 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 expensively, but it does show have an excellent growth rating.
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.
In multiple years SHAK reported negative net income over the last 5 years.
In the past 5 years SHAK always reported a positive cash flow from operatings.
1.2 Ratios
SHAK's Return On Assets of 1.12% is on the low side compared to the rest of the industry. SHAK is outperformed by 60.74% of its industry peers.
SHAK's Return On Equity of 4.03% is in line compared to the rest of the industry. SHAK outperforms 57.04% of its industry peers.
SHAK has a Return On Invested Capital of 2.47%. This is in the lower half of the industry: SHAK underperforms 65.93% of its industry peers.
| 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
SHAK's Profit Margin of 1.50% is on the low side compared to the rest of the industry. SHAK is outperformed by 60.00% of its industry peers.
SHAK's Profit Margin has declined in the last couple of years.
The Operating Margin of SHAK (3.87%) is worse than 67.41% of its industry peers.
SHAK's Operating Margin has declined in the last couple of years.
The Gross Margin of SHAK (47.03%) 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SHAK 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
SHAK has an Altman-Z score of 2.90. This is not the best score and indicates that SHAK is in the grey zone with still only limited risk for bankruptcy at the moment.
SHAK's Altman-Z score of 2.90 is fine compared to the rest of the industry. SHAK outperforms 73.33% 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.
The Debt to FCF ratio of SHAK (5.68) is better than 73.33% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that SHAK is somewhat dependend on debt financing.
SHAK has a better Debt to Equity ratio (0.52) than 67.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 5.68 | ||
| Altman-Z | 2.9 |
ROIC/WACC0.29
WACC8.52%
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.
With an excellent Current ratio value of 1.92, SHAK belongs to the best of the industry, outperforming 84.44% of the companies in the same industry.
SHAK has a Quick Ratio of 1.89. This is a normal value and indicates that SHAK is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.89, SHAK belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 84.75% over the past year.
SHAK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.80% yearly.
The Revenue has grown by 13.13% 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)84.75%
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 28.78% 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 13.70% on average per year.
EPS Next Y54.28%
EPS Next 2Y39.15%
EPS Next 3Y35.48%
EPS Next 5Y28.78%
Revenue Next Year15.96%
Revenue Next 2Y14.65%
Revenue Next 3Y14.53%
Revenue Next 5Y13.7%
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 88.80, SHAK can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SHAK is valued a bit more expensive than 62.96% of the companies in the same industry.
SHAK's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.86.
SHAK is valuated quite expensively with a Price/Forward Earnings ratio of 54.93.
62.22% of the companies in the same industry are cheaper than SHAK, based on the Price/Forward Earnings ratio.
SHAK is valuated expensively when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.8 | ||
| Fwd PE | 54.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHAK is valued a bit more expensive than the industry average as 72.59% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHAK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 89.4 | ||
| EV/EBITDA | 25.43 |
4.3 Compensation for Growth
SHAK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SHAK's earnings are expected to grow with 35.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.64
PEG (5Y)18.52
EPS Next 2Y39.15%
EPS Next 3Y35.48%
5. Dividend
5.1 Amount
SHAK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
96.79
+2.24 (+2.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners108.05%
Inst Owner Change3.74%
Ins Owners4.37%
Ins Owner Change-0.27%
Market Cap4.13B
Analysts72.26
Price Target139.49 (44.12%)
Short Float %14.21%
Short Ratio3.82
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)0%
PT rev (3m)18.55%
EPS NQ rev (1m)-1.38%
EPS NQ rev (3m)-8.2%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)4.43%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.8 | ||
| Fwd PE | 54.93 | ||
| P/S | 3.12 | ||
| P/FCF | 89.4 | ||
| P/OCF | 22.56 | ||
| P/B | 8.36 | ||
| P/tB | 8.36 | ||
| EV/EBITDA | 25.43 |
EPS(TTM)1.09
EY1.13%
EPS(NY)1.76
Fwd EY1.82%
FCF(TTM)1.08
FCFY1.12%
OCF(TTM)4.29
OCFY4.43%
SpS30.99
BVpS11.57
TBVpS11.57
PEG (NY)1.64
PEG (5Y)18.52
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 | 2.9 |
F-Score6
WACC8.52%
ROIC/WACC0.29
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 Y54.28%
EPS Next 2Y39.15%
EPS Next 3Y35.48%
EPS Next 5Y28.78%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y19.18%
Revenue growth 5Y16.07%
Sales Q2Q%12.63%
Revenue Next Year15.96%
Revenue Next 2Y14.65%
Revenue Next 3Y14.53%
Revenue Next 5Y13.7%
EBIT growth 1Y181.16%
EBIT growth 3YN/A
EBIT growth 5Y7.58%
EBIT Next Year563.84%
EBIT Next 3Y109.14%
EBIT Next 5Y63.82%
FCF growth 1Y179.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y76.51%
OCF growth 3Y43.11%
OCF growth 5Y13.75%