The Cheesecake Factory Incorporated [NASDAQ:CAKE]: Analyst Rating and Earnings

Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For The Cheesecake Factory Incorporated [CAKE], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give CAKE an Hold rating. The average 12-month price forecast for this stock is $51.31, with the high estimate being $58.00, the low estimate being $36.00 and the median estimate amounting to $52.50. This is compared to its latest closing price of $46.10.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The Cheesecake Factory Incorporated [CAKE] is sitting at 2.95. This is compared to 1 month ago, when its average rating was 2.86.

For the quarter ending in Sep-18 The Cheesecake Factory Incorporated [CAKE] generated $0.58 billion in sales. That’s 1.10% lower than the average estimate of $0.59 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.

Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Wed 20 Feb (In 40 Days).

Fundamental Analysis of The Cheesecake Factory Incorporated [CAKE]

Now let’s turn to look at profitability: with a current Operating Margin for The Cheesecake Factory Incorporated [CAKE] sitting at +7.35 and its Gross Margin at +14.07, this company’s Net Margin is now 6.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 23.14, and its Return on Invested Capital has reached 20.10%. Its Return on Equity is 25.87, and its Return on Assets is 11.22. These metrics all suggest that The Cheesecake Factory Incorporated is doing well at using the money it earns to generate returns.

Turning to investigate this organization’s capital structure, The Cheesecake Factory Incorporated [CAKE] has generated a Total Debt to Total Equity ratio of 19.34. Similarly, its Total Debt to Total Capital is 16.20, while its Total Debt to Total Assets stands at 8.44. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 19.34, and its Long-Term Debt to Total Capital is 16.20. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.

What about valuation? This company’s Enterprise Value to EBITDA is 7.86 and its Total Debt to EBITDA Value is 0.46. The Enterprise Value to Sales for this firm is now 0.87, and its Total Debt to Enterprise Value stands at 0.05. The Cheesecake Factory Incorporated [CAKE] has a Price to Book Ratio of 3.69, a Price to Cash Flow Ratio of 9.94 and P/E Ratio of 15.18. These metrics all suggest that The Cheesecake Factory Incorporated is more likely to generate a positive ROI.

Shifting the focus to workforce efficiency, The Cheesecake Factory Incorporated [CAKE] earns $57,813 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 24.76 and its Total Asset Turnover is 1.61. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.42 and its Current Ratio is 0.52. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.

Performance Indicators

Let’s now turn our attention to trading performance: The Cheesecake Factory Incorporated [CAKE] has 46.10M shares outstanding, amounting to a total market cap of $2.12B. Its stock price has been found in the range of 41.63 to 60.19. At its current price, it has moved by -23.70% from its 52-week high, and it has moved 10.31% from its 52-week low.

This stock’s Beta value is currently 0.36, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 53.78. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is The Cheesecake Factory Incorporated [CAKE] a Reliable Buy?

Shares of The Cheesecake Factory Incorporated [CAKE], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.