The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated Fundamental Analysis
The Cheesecake Factory Incorporated (CAKE) shows moderate financial fundamentals with a PE ratio of 19.83, profit margin of 3.96%, and ROE of 50.93%. The company generates $4.0B in annual revenue with moderate year-over-year growth of 4.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CAKE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCAKE demonstrates superior asset utilization.
Valuation Score
ExcellentCAKE trades at attractive valuation levels.
Growth Score
ModerateCAKE shows steady but slowing expansion.
Financial Health Score
ModerateCAKE shows balanced financial health with some risks.
Profitability Score
ModerateCAKE maintains healthy but balanced margins.
Key Financial Metrics
Is CAKE Expensive or Cheap?
P/E Ratio
CAKE trades at 19.83 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CAKE's PEG of -2.82 indicates potential undervaluation.
Price to Book
The market values The Cheesecake Factory Incorporated at 0.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.00 times EBITDA. This signals the market has high growth expectations.
How Well Does CAKE Make Money?
Net Profit Margin
For every $100 in sales, The Cheesecake Factory Incorporated keeps $3.96 as profit after all expenses.
Operating Margin
Core operations generate 4.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $50.93 in profit for every $100 of shareholder equity.
ROA
The Cheesecake Factory Incorporated generates $68.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Cheesecake Factory Incorporated generates limited operating cash flow of $342.51M, signaling weaker underlying cash strength.
Free Cash Flow
The Cheesecake Factory Incorporated produces free cash flow of $169.87M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.41 in free cash annually.
FCF Yield
CAKE converts 5.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.00
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.51
vs 25 benchmark
ROA
Return on assets percentage
0.69
vs 25 benchmark
ROCE
Return on capital employed
0.87
vs 25 benchmark
How CAKE Stacks Against Its Sector Peers
| Metric | CAKE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.83 | 25.25 | Better (Cheaper) |
| ROE | 50.93% | 1170.00% | Weak |
| Net Margin | 3.96% | 742.00% | Weak |
| Debt/Equity | 0.00 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 9.19 | Weak Liquidity |
| ROA | 68.80% | -6467.00% (disorted) | Strong |
CAKE outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Cheesecake Factory Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
32.67%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
13.27%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
12.80%
Industry Style: Cyclical, Growth, Discretionary
High Growth