SHAKE SHACK INC - CLASS A (SHAK)
US8190471016 - Common Stock
We assign a fundamental rating of 4 out of 10 to SHAK. SHAK was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. While SHAK seems to be doing ok healthwise, there are quite some concerns on its profitability. SHAK shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year SHAK was profitable.
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 worse Return On Assets (1.23%) than 63.43% of its industry peers.
SHAK's Return On Equity of 4.46% is in line compared to the rest of the industry. SHAK outperforms 53.73% of its industry peers.
The Return On Invested Capital of SHAK (0.49%) is worse than 76.12% of its industry peers.
| 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
SHAK has a Profit Margin of 1.82%. This is in the lower half of the industry: SHAK underperforms 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.
SHAK's Operating Margin has declined in the last couple of years.
The Gross Margin of SHAK (44.06%) 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHAK is destroying value.
SHAK has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SHAK has been increased compared to 5 years ago.
The debt/assets ratio for SHAK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.01 indicates that SHAK is not in any danger for bankruptcy at the moment.
SHAK has a Altman-Z score of 3.01. This is amongst the best in the industry. SHAK outperforms 82.09% of its industry peers.
SHAK has a Debt/Equity ratio of 0.55. This is a neutral value indicating SHAK is somewhat dependend on debt financing.
The Debt to Equity ratio of SHAK (0.55) is better than 70.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.01 |
ROIC/WACC0.05
WACC8.95%
2.3 Liquidity
A Current Ratio of 2.04 indicates that SHAK has no problem at all paying its short term obligations.
The Current ratio of SHAK (2.04) is better than 87.31% of its industry peers.
A Quick Ratio of 2.01 indicates that SHAK has no problem at all paying its short term obligations.
SHAK's Quick ratio of 2.01 is amongst the best of the industry. SHAK outperforms 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.
SHAK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.70% yearly.
SHAK shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.77%.
The Revenue has been growing by 18.81% on average over the past years. This is quite good.
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
Based on estimates for the next years, SHAK will show a very strong growth in Earnings Per Share. The EPS will grow by 34.44% on average per year.
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 271.97, 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 68.66% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.25, SHAK is valued quite expensively.
A Price/Forward Earnings ratio of 140.71 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 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 271.97 | ||
| Fwd PE | 140.71 |
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 79.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 40.89 |
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.
SHAK's earnings are expected to grow with 47.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.92
PEG (5Y)N/A
EPS Next 2Y63.47%
EPS Next 3Y47.81%
5. Dividend
5.1 Amount
SHAK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SHAKE SHACK INC - CLASS A
NYSE:SHAK (4/25/2024, 8:55:59 AM)
97.91
-1.63 (-1.64%)
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 Cap4.14B
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)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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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 | 271.97 | ||
| Fwd PE | 140.71 | ||
| 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)2.92
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