Shake Shack Inc. cash flow to debt ratio of 24.65% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Shake Shack Inc.'s free cash flow has increased 58.48% from $35.66M last year to $56.51M, signaling increasing performance

Shake Shack Inc.'s debt to equity ratio is 0.48, which means that the company's assets are healthy financed, signaling financial stability.

Shake Shack Inc.'s debt has decreased relative to shareholder equity from 1.72 last year to 0.48 today, signaling strengthened financials

Shake Shack Inc. has a net debt to EBITDA ratio of 2.99x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Shake Shack Inc.'s interest coverage ratio of 13.04 indicates that earnings with good margin can cover interest payments on company debt

Shake Shack Inc.'s profit margin has increased (214.03%) in the last year from 0.81% to 2.56%, signaling increasing performance

Shake Shack Inc.'s short-term assets of $430.35M exceed its short-term liabilities of $244.92M

Shake Shack Inc.'s return on assets of 2.04% is lower than the 5.00% threshold, indicating inefficient asset utilization

Shake Shack Inc.'s return on equity of 7.55%, is lower than 15.00%, indicating bad performance

Shake Shack Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Shake Shack Inc. had positive net income in 3 out of 5 years, indicating stable and consistent earnings

Shake Shack Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Shake Shack Inc. has a free cash flow yield of 1.96%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Shake Shack Inc.'s yearly earnings has increased 347.98% since last year from $10.21M to $45.73M, signaling increasing performance

Shake Shack Inc.'s yearly revenue has increased 15.38% since last year from $1.25B to $1.45B, signaling increasing performance

ROIC 2.71% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Shake Shack Inc.'s 3-year revenue CAGR of 17.08% is positive, indicating growing revenue over the past 3 years

Shake Shack Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Shake Shack Inc. had positive ROE in 3 out of 5 years, indicating consistent and reliable returns on equity

Shake Shack Inc. has insufficient data to evaluate this check.

Shake Shack Inc. has an earnings yield of 1.38%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Shake Shack Inc. is overvalued relative to its fair value price of 18.08 based on EBITDA multiple model

Shake Shack Inc. has an EV/EBITDA ratio of 18.88x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Shake Shack Inc. is overvalued relative to its fair value price of 1.50 based on Earnings Fair Value model

Shake Shack Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Shake Shack Inc. has a price-to-book ratio of 5.05x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Shake Shack Inc. has a price-to-sales ratio of 1.86x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue