The Cheesecake Factory (CAKE) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
The Cheesecake Factory stock (CAKE) is currently trading at $56.32. The Cheesecake Factory PE ratio is 18.41. The Cheesecake Factory PS ratio (Price-to-Sales) is 0.75. Analyst consensus price target for CAKE is $64.67. WallStSmart rates CAKE as Underperform.
- CAKE PE ratio analysis and historical PE chart
- CAKE PS ratio (Price-to-Sales) history and trend
- CAKE intrinsic value — DCF, Graham Number, EPV models
- CAKE stock price prediction 2025 2026 2027 2028 2029 2030
- CAKE fair value vs current price
- CAKE insider transactions and insider buying
- Is CAKE undervalued or overvalued?
- The Cheesecake Factory financial analysis — revenue, earnings, cash flow
- CAKE Piotroski F-Score and Altman Z-Score
- CAKE analyst price target and Smart Rating
The Cheesecake Factory
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CAKE Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · The Cheesecake Factory (CAKE)
CAKE trades 196% above its Graham fair value of $20.81, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
The Cheesecake Factory (CAKE) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, return on equity, price/sales. Concerns around operating margin and price/book. Fundamentals are solid but monitor weak areas for improvement.
The Cheesecake Factory (CAKE) Key Strengths (5)
Every $100 of shareholder equity generates $34 in profit
Paying less than $1 for every $1 of annual revenue
115.77% of shares held by major funds and institutions
Good growth relative to its price
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
The Cheesecake Factory (CAKE) Areas to Watch (5)
Earnings declining -27.90%, profits shrinking
Very thin margins with limited operational efficiency
Very expensive at 6.5x book value
Revenue growing slowly at 4.40% annually
Very thin margins, barely profitable
The Cheesecake Factory (CAKE) Detailed Analysis Report
Overall Assessment
This company scores 52/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 5 register as strengths (avg 9.0/10) while 5 fall into concern territory (avg 1.6/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Return on Equity, Price/Sales, Institutional Own.. Valuation metrics including PEG Ratio (1.19), Price/Sales (0.75) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 33.70%.
The Bear Case
The primary concerns are EPS Growth, Operating Margin, Price/Book. Some valuation metrics including Price/Book (6.53) suggest expensive pricing. Growth concerns include Revenue Growth at 4.40%, EPS Growth at -27.90%, which may limit upside. Profitability pressure is visible in Operating Margin at 7.00%, Profit Margin at 3.96%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 33.70% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 4.40% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Return on Equity, Price/Sales) and negatives (EPS Growth, Operating Margin). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
CAKE Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
CAKE's Price-to-Sales ratio of 0.75x trades 23% below its historical average of 0.97x (20th percentile). The current valuation is 49% below its historical high of 1.46x set in Jul 2015, and 212% above its historical low of 0.24x in Nov 2008. Over the past 12 months, the PS ratio has compressed from ~0.9x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for The Cheesecake Factory (CAKE) · CONSUMER CYCLICAL › RESTAURANTS
The Big Picture
The Cheesecake Factory operates as a stable business with moderate growth and solid fundamentals. Revenue reached 3.8B with 4% growth year-over-year. Profit margins are thin at 4.0%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
ROE of 33.7% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 50M in free cash flow and 75M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can The Cheesecake Factory push profit margins above 15% as the business scales?
Sector dynamics: monitor RESTAURANTS industry trends, competitive moves, and regulatory changes that could impact The Cheesecake Factory.
Bottom Line
The Cheesecake Factory offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(30 last 3 months)
| Insider | Type | Shares |
|---|---|---|
MAY, SCARLETT EVP, GENERAL COUNSEL | Sell | -5,206 |
| Insider | Type | Shares |
|---|---|---|
CAPPELLO, ALEXANDER L Director | Sell | -635 |
Data sourced from SEC Form 4 filings
Last updated: 11:50:12 AM
About The Cheesecake Factory(CAKE)
NASDAQ
CONSUMER CYCLICAL
RESTAURANTS
USA
Cheesecake Factory Incorporated operates restaurants. The company is headquartered in Calabasas, California.