SHAKE SHACK INC - CLASS A (SHAK)
US8190471016 - Common Stock
Overall SHAK gets a fundamental rating of 4 out of 10. We evaluated SHAK against 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 shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
SHAK had positive earnings in the past year.
SHAK had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 1.23%, SHAK is doing worse than 63.43% of the companies in the same industry.
SHAK has a Return On Equity (4.46%) which is comparable to the rest of the industry.
SHAK's Return On Invested Capital of 0.49% is on the low side compared to the rest of the industry. SHAK is outperformed by 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
Looking at the Profit Margin, with a value of 1.82%, SHAK is doing worse than 61.94% of the companies in the same industry.
In the last couple of years the Profit Margin of SHAK has declined.
The Operating Margin of SHAK (0.82%) is worse than 75.37% of its industry peers.
In the last couple of years the Operating Margin of SHAK has declined.
SHAK has a Gross Margin of 44.06%. This is comparable to the rest of the industry: SHAK outperforms 40.30% of its industry peers.
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
SHAK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SHAK has more shares outstanding
SHAK has more shares outstanding than it did 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 2.96 indicates that SHAK is not a great score, but indicates only limited risk for bankruptcy at the moment.
SHAK's Altman-Z score of 2.96 is amongst the best of the industry. SHAK outperforms 81.34% 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.
With a decent Debt to Equity ratio value of 0.55, SHAK is doing good in the industry, outperforming 70.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.96 |
ROIC/WACC0.06
WACC8.84%
2.3 Liquidity
A Current Ratio of 2.04 indicates that SHAK has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.04, SHAK belongs to the best of the industry, outperforming 87.31% of the companies in the same industry.
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.
SHAK has a Quick ratio of 2.01. This is amongst the best in 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.
Looking at the last year, SHAK shows a very strong growth in Revenue. 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
SHAK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.44% yearly.
SHAK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.15% yearly.
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
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.
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
With a Price/Earnings ratio of 269.64, SHAK can be considered very expensive at the moment.
67.91% of the companies in the same industry are cheaper than SHAK, based on the Price/Earnings ratio.
SHAK's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.05.
With a Price/Forward Earnings ratio of 139.50, SHAK can be considered very expensive at the moment.
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 is valuated expensively when we compare the Price/Forward Earnings ratio to 21.53, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 269.64 | ||
| Fwd PE | 139.5 |
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 79.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 39.85 |
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)2.89
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 (4/15/2024, 7:04:00 PM)
After market: 97.07 0 (0%)97.07
-0.14 (-0.14%)
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 Cap4.11B
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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Revenue beat(16)
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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)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 269.64 | ||
| Fwd PE | 139.5 | ||
| 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)2.89
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