Nathan's Famous, Inc. (NATH) is a Restaurants company in the Consumer Cyclical sector, currently trading at $101.47. It has a SharesGrow Score of 76/100, indicating a strong investment profile with 5 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of NATH = $240.26 (+136.8% from the current price, the stock appears undervalued).
Valuation: NATH trades at a trailing Price-to-Earnings (P/E) of 19.3 (S&P 500 average ~25).
Financials: revenue is $148M, +8.9%/yr average growth. Net income is $24M, growing at +22.3%/yr. Net profit margin is 16.2% (healthy). Gross margin is 39.5% (+1.1 pp trend).
Balance sheet: total debt is $8M with negative equity of -$17M — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 2.69 (strong liquidity). Debt-to-assets is 14.7%. Total assets: $53M.
SharesGrow 7-Criteria breakdown: Value 75/100 (Pass), Growth 83/100 (Pass), Past 100/100 (Pass), Health 100/100 (Pass), Moat 40/100 (Fail), Future ?/100 (Fail), Income 70/100 (Pass).
