SHAKE SHACK INC - CLASS A (SHAK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SHAK - US8190471016 - Common Stock
87.48 USD
-1 (-1.13%)
87.01 USD
-0.47 (-0.54%)
SHAK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 132 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
In the past year SHAK was profitable.
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.
SHAK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SHAK (2.33%) is comparable to the rest of the industry.
SHAK has a better Return On Equity (8.37%) than 64.39% of its industry peers.
SHAK's Return On Invested Capital of 2.80% is on the low side compared to the rest of the industry. SHAK is outperformed by 65.91% 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 of 3.10%. This is comparable to the rest of the industry: SHAK outperforms 50.76% of its industry peers.
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 65.15% of its industry peers.
SHAK's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 47.53%, SHAK perfoms like the industry average, outperforming 53.03% of the companies in the same 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHAK is destroying value.
The number of shares outstanding for SHAK has been increased compared to 1 year ago.
SHAK has more shares outstanding than it did 5 years ago.
SHAK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.73 indicates that SHAK is not a great score, but indicates only limited risk for bankruptcy at the moment.
SHAK has a better Altman-Z score (2.73) than 71.97% 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.
SHAK has a better Debt to FCF ratio (4.18) than 77.27% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that SHAK is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.51, SHAK is doing good in the industry, outperforming 67.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.35
WACC8.12%
2.3 Liquidity
A Current Ratio of 1.84 indicates that SHAK should not have too much problems paying its short term obligations.
The Current ratio of SHAK (1.84) is better than 82.58% of its industry peers.
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.
The Quick ratio of SHAK (1.81) is better than 84.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
SHAK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 79.10%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.80% on average over the past years.
Looking at the last year, SHAK shows a quite strong growth in Revenue. The Revenue has grown by 13.49% in the last year.
Measured over the past years, SHAK shows a quite strong growth in Revenue. The Revenue has been growing by 16.07% on average per year.
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 Y49.14%
EPS Next 2Y34.95%
EPS Next 3Y32.22%
EPS Next 5Y29.1%
Revenue Next Year16.12%
Revenue Next 2Y14.76%
Revenue Next 3Y14.71%
Revenue Next 5Y14.17%
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.
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
Based on the Price/Earnings ratio of 72.90, the valuation of SHAK can be described as expensive.
SHAK's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of SHAK to the average of the S&P500 Index (26.31), we can say SHAK is valued expensively.
The Price/Forward Earnings ratio is 52.79, which means the current valuation is very expensive for SHAK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SHAK indicates a slightly more expensive valuation: SHAK is more expensive than 63.64% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SHAK to the average of the S&P500 Index (36.59), we can say SHAK is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.9 | ||
| Fwd PE | 52.79 |
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 72.73% of the companies in the same industry.
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 | 59.37 | ||
| EV/EBITDA | 22.05 |
4.3 Compensation for Growth
The 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 32.22% in the coming years.
PEG (NY)1.48
PEG (5Y)15.2
EPS Next 2Y34.95%
EPS Next 3Y32.22%
5. Dividend
5.1 Amount
SHAK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
87.48
-1 (-1.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners108.05%
Inst Owner Change-3.58%
Ins Owners4.37%
Ins Owner Change-0.06%
Market Cap3.73B
Revenue(TTM)1.37B
Net Income(TTM)42.60M
Analysts72.5
Price Target116.65 (33.34%)
Short Float %13.04%
Short Ratio3.93
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)2
Avg EPS beat(2)14.62%
Min EPS beat(2)14.07%
Max EPS beat(2)15.17%
EPS beat(4)3
Avg EPS beat(4)4.09%
Min EPS beat(4)-16.46%
Max EPS beat(4)15.17%
EPS beat(8)6
Avg EPS beat(8)32.54%
EPS beat(12)10
Avg EPS beat(12)44.89%
EPS beat(16)14
Avg EPS beat(16)43.63%
Revenue beat(2)0
Avg Revenue beat(2)-1.21%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)-1.1%
Revenue beat(4)0
Avg Revenue beat(4)-2.1%
Min Revenue beat(4)-4.11%
Max Revenue beat(4)-1.1%
Revenue beat(8)1
Avg Revenue beat(8)-1.65%
Revenue beat(12)2
Avg Revenue beat(12)-1.55%
Revenue beat(16)2
Avg Revenue beat(16)-1.69%
PT rev (1m)-16.19%
PT rev (3m)-16.37%
EPS NQ rev (1m)-19.82%
EPS NQ rev (3m)-18.44%
EPS NY rev (1m)-3.21%
EPS NY rev (3m)-3.52%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.9 | ||
| Fwd PE | 52.79 | ||
| P/S | 2.72 | ||
| P/FCF | 59.37 | ||
| P/OCF | 18.28 | ||
| P/B | 7.34 | ||
| P/tB | 7.34 | ||
| EV/EBITDA | 22.05 |
EPS(TTM)1.2
EY1.37%
EPS(NY)1.66
Fwd EY1.89%
FCF(TTM)1.47
FCFY1.68%
OCF(TTM)4.79
OCFY5.47%
SpS32.17
BVpS11.92
TBVpS11.92
PEG (NY)1.48
PEG (5Y)15.2
Graham Number17.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 8.37% | ||
| ROCE | 3.69% | ||
| ROIC | 2.8% | ||
| ROICexc | 3.61% | ||
| ROICexgc | 3.61% | ||
| OM | 4.31% | ||
| PM (TTM) | 3.1% | ||
| GM | 47.53% | ||
| FCFM | 4.58% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score7
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.18 | ||
| Debt/EBITDA | 1.56 | ||
| Cap/Depr | 133.42% | ||
| Cap/Sales | 10.29% | ||
| Interest Coverage | 75.14 | ||
| Cash Conversion | 123.74% | ||
| Profit Quality | 147.66% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 2.73 |
F-Score7
WACC8.12%
ROIC/WACC0.35
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)79.1%
EPS 3YN/A
EPS 5Y4.8%
EPS Q2Q%44%
EPS Next Y49.14%
EPS Next 2Y34.95%
EPS Next 3Y32.22%
EPS Next 5Y29.1%
Revenue 1Y (TTM)13.49%
Revenue growth 3Y19.18%
Revenue growth 5Y16.07%
Sales Q2Q%15.93%
Revenue Next Year16.12%
Revenue Next 2Y14.76%
Revenue Next 3Y14.71%
Revenue Next 5Y14.17%
EBIT growth 1Y156%
EBIT growth 3YN/A
EBIT growth 5Y7.58%
EBIT Next Year563.84%
EBIT Next 3Y109.14%
EBIT Next 5Y63.82%
FCF growth 1Y231.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y80.8%
OCF growth 3Y43.11%
OCF growth 5Y13.75%
SHAKE SHACK INC - CLASS A / SHAK FAQ
What is the ChartMill fundamental rating of SHAKE SHACK INC - CLASS A (SHAK) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SHAK.
Can you provide the valuation status for SHAKE SHACK INC - CLASS A?
ChartMill assigns a valuation rating of 2 / 10 to SHAKE SHACK INC - CLASS A (SHAK). This can be considered as Overvalued.
What is the profitability of SHAK stock?
SHAKE SHACK INC - CLASS A (SHAK) has a profitability rating of 3 / 10.
What is the financial health of SHAKE SHACK INC - CLASS A (SHAK) stock?
The financial health rating of SHAKE SHACK INC - CLASS A (SHAK) is 5 / 10.
Can you provide the expected EPS growth for SHAK stock?
The Earnings per Share (EPS) of SHAKE SHACK INC - CLASS A (SHAK) is expected to grow by 49.14% in the next year.