Nathan's Famous, Inc. Fundamental Analysis (NASDAQ: NATH)
Nathan's Famous, Inc. (NASDAQ: NATH) shows moderate financial fundamentals with a PE ratio of 19.94, profit margin of 11.78%, and ROE of -1.87%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 9.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -60.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NATH's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNATH demonstrates superior asset utilization.
Valuation Score
ExcellentNATH trades at attractive valuation levels.
Growth Score
ModerateNATH shows steady but slowing expansion.
Financial Health Score
ExcellentNATH maintains a strong and stable balance sheet.
Profitability Score
WeakNATH struggles to sustain strong margins.
Key Financial Metrics
Is NATH Expensive or Cheap?
P/E Ratio
NATH trades at 19.94 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NATH's PEG of -1.24 indicates potential undervaluation.
Price to Book
The market values Nathan's Famous, Inc. at -55.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.68 times EBITDA. This signals the market has high growth expectations.
How Well Does NATH Make Money?
Net Profit Margin
For every $100 in sales, Nathan's Famous, Inc. keeps $11.78 as profit after all expenses.
Operating Margin
Core operations generate 17.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.87 in profit for every $100 of shareholder equity.
ROA
Nathan's Famous, Inc. generates $30.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nathan's Famous, Inc. produces operating cash flow of $19.42M, showing steady but balanced cash generation.
Free Cash Flow
Nathan's Famous, Inc. generates strong free cash flow of $19.09M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.66 in free cash annually.
FCF Yield
NATH converts 4.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
-55.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-7.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.87
vs 25 benchmark
ROA
Return on assets percentage
0.31
vs 25 benchmark
ROCE
Return on capital employed
0.74
vs 25 benchmark
How NATH Stacks Against Its Sector Peers
| Metric | NATH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.94 | 26.74 | Better (Cheaper) |
| ROE | -187.25% | 965.00% | Weak |
| Net Margin | 11.78% | -4914.00% (disorted) | Strong |
| Debt/Equity | -7.12 | 0.61 | Strong (Low Leverage) |
| Current Ratio | 2.45 | 2.31 | Strong Liquidity |
| ROA | 30.75% | 295.00% | Weak |
NATH outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nathan's Famous, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
115.00%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
81.87%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
55.92%
Industry Style: Cyclical, Growth, Discretionary
High Growth