Cheesecake Factory, Inc. (CAKE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Texas Roadhouse, Inc.

Aramark

Cheesecake Factory, Inc.

Bloomin' Brands, Inc.

Cava Group, Inc.

Darden Restaurants, Inc.

Shake Shack, Inc.

Domino's Pizza, Inc.

Wingstop, Inc.

Papa John's International, Inc.

The Wendy's Co.

Why is Cheesecake Factory, Inc. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 14.66

Low Debt Company with Strong Long Term Fundamental Strength

With a growth in Net Profit of 50.41%, the company declared Very Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at USD 317.92 MM
INTEREST COVERAGE RATIO(Q) Highest at 4,537.84
RAW MATERIAL COST(Y) Fallen by 1.41% (YoY)

With ROCE of 25.32%, it has a very expensive valuation with a 6.04 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 31.01%, its profits have risen by 16% ; the PEG ratio of the company is 1.5

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating performance in long term as well as near term

Along with generating 31.01% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Cheesecake Factory, Inc. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Cheesecake Factory, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Cheesecake Factory, Inc.

31.01%

2.99

34.92%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.60%

EBIT Growth (5y)

36.21%

EBIT to Interest (avg)

14.66

Debt to EBITDA (avg)

7.59

Net Debt to Equity (avg)

1.89

Sales to Capital Employed (avg)

3.39

Tax Ratio

6.82%

Dividend Payout Ratio

35.33%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

15.54%

ROE (avg)

33.26%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

12.76

EV to EBIT

23.86

EV to EBITDA

16.77

EV to Capital Employed

6.04

EV to Sales

1.64

PEG Ratio

1.49

Dividend Yield

1.03%

ROCE (Latest)

25.32%

ROE (Latest)

45.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 317.92 MM

INTEREST COVERAGE RATIO(Q)

Highest at 4,537.84

RAW MATERIAL COST(Y)

Fallen by 1.41% (YoY

CASH AND EQV(HY)

Highest at USD 450.82 MM

DEBT-EQUITY RATIO (HY)

Lowest at 415.19 %

INVENTORY TURNOVER RATIO(HY)

Highest at 56.11 times

DEBTORS TURNOVER RATIO(HY)

Highest at 31.84 times

DIVIDEND PER SHARE(HY)

Highest at USD 31.84

NET SALES(Q)

Highest at USD 978.83 MM

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Cheesecake Factory, Inc.

Operating Cash Flow

Highest at USD 317.92 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Highest at 4,537.84

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at USD 978.83 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 450.82 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 415.19 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 56.11 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 31.84 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at USD 31.84

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by 1.41% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales