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Is this Large Market Cap Stock target price reasonable for The Cheesecake Factory Incorporated (NASDAQ:CAKE)?

The company in question is, The Cheesecake Factory Incorporated (NASDAQ:CAKE) currently with a stock price of 51.44 (0.74% today). The market cap for The Cheesecake Factory Incorporated is 2411.05, and is in the sector Services, and Restaurants industry. The target price for The Cheesecake Factory Incorporated is 53.77. Currently The Cheesecake Factory Incorporated is trading with a P/E of 20.32, and a forward P/E of 17.19. Average volume for The Cheesecake Factory Incorporated is 719.37 and so far today it is 196403.

Performance in the last year for The Cheesecake Factory Incorporated has been -2.65%. For EPS growth, The Cheesecake Factory Incorporated has seen a growth of 17.30%, and is looking to grow in the next year to 8.15%. More long term stats show that EPS growth has been 11.20% over the last five years and could be 12.05% for the next five years. The Cheesecake Factory Incorporated has seen sales growth quarter over quarter at 5.60%, with EPS growth quarter over quarter at 12.60%. The 20-day simple moving average is 0.72%, with the 200-day simple moving average coming to 2.87%.

Since the IPO date for The Cheesecake Factory Incorporated on the 9/18/1992, The Cheesecake Factory Incorporated has seen performance year to date to be 12.14%. With The Cheesecake Factory Incorporated trading at 51.44, the dividend yield is 1.88%, and the EPS is 2.51.

So could The Cheesecake Factory Incorporated, be undervalued? Well as said before P/E is 20.32. The PEG is 1.69, P/S is 1.11 and the P/B is at 4.13. The P/cash is 30.29, with P/free cash flow at 26.58.

The Cheesecake Factory Incorporated ability to deal with debt shows that the current ratio is 0.7, and the quick ratio is 0.5. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, The Cheesecake Factory Incorporated has a gross margin of 76.50%, an operating margin of 8.20% and a profit margin of 5.80%.Payout ratio for The Cheesecake Factory Incorporated is 30.90%. Return on assets come to 10.50% with return on investment coming to 20.80%.

Insider ownership for The Cheesecake Factory Incorporated, is at 0.20% and institutional ownership comes to 93.00%. Outstanding shares are at 47.22. While shares float is 44.72. The float short is currently 14.35%, and short ratio is 8.92.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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