Shake Shack Price To Sales vs. Return On Asset
| SHAK Stock | USD 131.59 3.25 2.41% |
Shake Shack Price To Sales Ratio |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.48 | 0.4581 |
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| Net Profit Margin | 0.0097 | 0.0179 |
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| Operating Profit Margin | 0.0388 | 0.0265 |
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| Pretax Profit Margin | 0.0223 | 0.0235 |
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| Return On Assets | 0.0189 | 0.0255 |
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| Return On Equity | 0.18 | 0.1681 |
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For Shake Shack profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Shake Shack to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Shake Shack utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Shake Shack's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Shake Shack over time as well as its relative position and ranking within its peers.
Shake |
Shake Shack's Revenue Breakdown by Earning Segment
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Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Shake Shack. If investors know Shake will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Shake Shack listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.397 | Earnings Share 0.2 | Revenue Per Share 30.494 | Quarterly Revenue Growth 0.147 | Return On Assets 0.0102 |
The market value of Shake Shack is measured differently than its book value, which is the value of Shake that is recorded on the company's balance sheet. Investors also form their own opinion of Shake Shack's value that differs from its market value or its book value, called intrinsic value, which is Shake Shack's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Shake Shack's market value can be influenced by many factors that don't directly affect Shake Shack's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Shake Shack's value and its price as these two are different measures arrived at by different means. Investors typically determine if Shake Shack is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shake Shack's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Shake Shack Return On Asset vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Shake Shack's current stock value. Our valuation model uses many indicators to compare Shake Shack value to that of its competitors to determine the firm's financial worth. Shake Shack is rated fifth in price to sales category among its peers. It is rated below average in return on asset category among its peers . The ratio of Price To Sales to Return On Asset for Shake Shack is about 475.54 . At this time, Shake Shack's Price To Sales Ratio is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Shake Shack by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Shake Return On Asset vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Shake Shack |
| = | 4.85 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Shake Shack |
| = | 0.0102 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Shake Return On Asset Comparison
Shake Shack is currently under evaluation in return on asset category among its peers.
Shake Shack Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Shake Shack, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Shake Shack will eventually generate negative long term returns. The profitability progress is the general direction of Shake Shack's change in net profit over the period of time. It can combine multiple indicators of Shake Shack, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -3 K | -3.1 K | |
| Operating Income | 5.9 M | 5.1 M | |
| Income Before Tax | 17 M | 13.1 M | |
| Total Other Income Expense Net | 11.1 M | 12.9 M | |
| Net Loss | -21.7 M | -20.6 M | |
| Net Income | 21 M | 22 M | |
| Income Tax Expense | -4 M | -3.8 M | |
| Net Income From Continuing Ops | 2.7 M | 2.8 M | |
| Interest Income | 292.5 K | 260 K | |
| Net Interest Income | -1.6 M | -1.7 M | |
| Non Operating Income Net Other | 3.7 M | 3.5 M | |
| Change To Netincome | 14.3 M | 10.3 M | |
| Net Income Per Share | 0.19 | 0.18 | |
| Income Quality | 6.41 | 3.63 | |
| Net Income Per E B T | 0.76 | 0.45 |
Shake Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Shake Shack. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Shake Shack position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Shake Shack's important profitability drivers and their relationship over time.
Use Shake Shack in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Shake Shack position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shake Shack will appreciate offsetting losses from the drop in the long position's value.Shake Shack Pair Trading
Shake Shack Pair Trading Analysis
The ability to find closely correlated positions to Shake Shack could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Shake Shack when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Shake Shack - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Shake Shack to buy it.
The correlation of Shake Shack is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Shake Shack moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Shake Shack moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Shake Shack can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Shake Shack position
In addition to having Shake Shack in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out World Market Map. For more information on how to buy Shake Stock please use our How to buy in Shake Stock guide.You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
To fully project Shake Shack's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Shake Shack at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Shake Shack's income statement, its balance sheet, and the statement of cash flows.