SHAKE SHACK INC - CLASS A (SHAK)
US8190471016 - Common Stock
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. SHAK scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
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
The Return On Assets of SHAK (1.23%) is worse than 63.43% of its industry peers.
With a Return On Equity value of 4.46%, SHAK perfoms like the industry average, outperforming 53.73% of the companies in the same industry.
With a Return On Invested Capital value of 0.49%, SHAK is not doing good in the industry: 76.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 4.46% | ||
| ROIC | 0.49% |
ROA(3y)-0.33%
ROA(5y)-0.52%
ROE(3y)-1.25%
ROE(5y)-1.5%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of SHAK (1.82%) is worse than 61.94% of its industry peers.
SHAK's Profit Margin has declined in the last couple of years.
SHAK has a worse Operating Margin (0.82%) than 75.37% of its industry peers.
In the last couple of years the Operating Margin of SHAK has declined.
Looking at the Gross Margin, with a value of 44.06%, SHAK is in line with its industry, outperforming 40.30% 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 | 0.82% | ||
| PM (TTM) | 1.82% | ||
| GM | 44.06% |
OM growth 3YN/A
OM growth 5Y-35.04%
PM growth 3YN/A
PM growth 5Y-11.26%
GM growth 3Y2.55%
GM growth 5Y-0.9%
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.
SHAK has more shares outstanding than it did 5 years ago.
SHAK has a better debt/assets ratio than last year.
2.2 Solvency
SHAK has an Altman-Z score of 3.05. This indicates that SHAK is financially healthy and has little risk of bankruptcy at the moment.
SHAK's Altman-Z score of 3.05 is amongst the best of the industry. SHAK outperforms 82.09% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that SHAK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, SHAK is in the better half of the industry, outperforming 70.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.05 |
ROIC/WACC0.05
WACC9.05%
2.3 Liquidity
SHAK has a Current Ratio of 2.04. This indicates that SHAK is financially healthy and has no problem in meeting its short term obligations.
SHAK's Current ratio of 2.04 is amongst the best of the industry. SHAK outperforms 87.31% of its industry peers.
SHAK has a Quick Ratio of 2.01. This indicates that SHAK is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SHAK (2.01) is better than 87.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 216.13% over the past year.
Measured over the past years, SHAK shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.70% on average per year.
SHAK shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.77%.
Measured over the past years, SHAK shows a quite strong growth in Revenue. The Revenue has been growing by 18.81% on average per year.
EPS 1Y (TTM)216.13%
EPS 3YN/A
EPS 5Y-12.7%
EPS growth Q2Q133.33%
Revenue 1Y (TTM)20.77%
Revenue growth 3Y27.65%
Revenue growth 5Y18.81%
Revenue growth Q2Q20.02%
3.2 Future
SHAK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.44% yearly.
The Revenue is expected to grow by 13.15% on average over the next years. This is quite good.
EPS Next Y93.29%
EPS Next 2Y63.47%
EPS Next 3Y47.81%
EPS Next 5Y34.44%
Revenue Next Year15.23%
Revenue Next 2Y15.25%
Revenue Next 3Y14.44%
Revenue Next 5Y13.15%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 291.33, which means the current valuation is very expensive for SHAK.
68.66% of the companies in the same industry are cheaper than SHAK, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.92. SHAK is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 150.72 indicates a quite expensive valuation of SHAK.
SHAK's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SHAK is more expensive than 64.18% of the companies in the same industry.
SHAK's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 291.33 | ||
| Fwd PE | 150.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHAK is valued a bit more expensive than 79.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 41.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SHAK does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as SHAK's earnings are expected to grow with 47.81% in the coming years.
PEG (NY)3.12
PEG (5Y)N/A
EPS Next 2Y63.47%
EPS Next 3Y47.81%
5. Dividend
5.1 Amount
No dividends for SHAK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SHAKE SHACK INC - CLASS A
NYSE:SHAK (4/26/2024, 7:15:58 PM)
After market: 104.88 0 (0%)104.88
+3.5 (+3.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 291.33 | ||
| Fwd PE | 150.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 4.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.82% | ||
| PM (TTM) | 1.82% | ||
| GM | 44.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)216.13%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y93.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.77%
Revenue growth 3Y27.65%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y