NasdaqGS:NATH

Stock Analysis Report

Executive Summary

Nathan's Famous, Inc., together with its subsidiaries, operates in the foodservice industry.

Snowflake

Fundamentals

Proven track record and slightly overvalued.


Similar Companies

Share Price & News

How has Nathan's Famous's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.07%

NATH

2.0%

US Hospitality

1.0%

US Market


1 Year Return

-11.1%

NATH

3.5%

US Hospitality

6.7%

US Market

Return vs Industry: NATH underperformed the US Hospitality industry which returned 3.5% over the past year.

Return vs Market: NATH underperformed the US Market which returned 6.7% over the past year.


Share holder returns

NATHIndustryMarket
7 Day-0.07%2.0%1.0%
30 Day1.4%-5.5%-1.8%
90 Day-4.1%-6.1%-1.8%
1 Year-9.5%-11.1%6.0%3.5%9.1%6.7%
3 Year51.3%39.0%44.0%34.6%46.1%36.6%
5 Year74.9%6.0%42.7%26.9%66.9%48.6%

Price Volatility Vs. Market

How volatile is Nathan's Famous's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nathan's Famous undervalued based on future cash flows and its price relative to the stock market?

13.85x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: NATH ($72.9) is trading above our estimate of fair value ($42.86)

Significantly Undervalued: NATH is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: NATH is good value based on its PE Ratio (13.8x) compared to the Hospitality industry average (23x).

PE vs Market: NATH is good value based on its PE Ratio (13.8x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate NATH's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: NATH has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.


Next Steps

Future Growth

How is Nathan's Famous expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.6%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Nathan's Famous has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Nathan's Famous performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NATH's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: NATH's earnings growth over the past year (380.5%) exceeds its 5-year average (9.9% per year).

Earnings vs Industry: NATH earnings growth over the past year (380.5%) exceeded the Hospitality industry -13.9%.


Return on Equity

High ROE: NATH's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: NATH has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: NATH's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Nathan's Famous's financial position?


Financial Position Analysis

Short Term Liabilities: NATH has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: NATH has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: NATH has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: NATH's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: NATH's debt is not well covered by operating cash flow (8.9%).

Interest Coverage: NATH's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Inventory Level: NATH has a low level of unsold assets or inventory.

Debt Coverage by Assets: NATH has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Nathan's Famous's current dividend yield, its reliability and sustainability?

1.92%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.5%markettop25%3.8%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: NATH's dividend (1.92%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: NATH's dividend (1.92%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: Too early to tell whether NATH's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if NATH's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.9%), NATH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Nathan's Famous's salary, the management and board of directors tenure and is there insider trading?

6.9yrs

Average management tenure


CEO

Eric Gatoff (50yo)

12.8yrs

Tenure

US$1,313,873

Compensation

Mr. Eric Gatoff has been the Chief Executive Officer for Nathan's Famous, Inc. since January 1, 2007. Mr. Gatoff served as Vice President and Corporate Counsel of Nathan's Famous, Inc. from October 2003 to ...


CEO Compensation Analysis

Compensation vs. Market: Eric's total compensation ($USD1.31M) is about average for companies of similar size in the US market ($USD1.85M).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.9yrs

Average Tenure

60yo

Average Age

Experienced Management: NATH's management team is seasoned and experienced (6.9 years average tenure).


Board Age and Tenure

20.8yrs

Average Tenure

70yo

Average Age

Experienced Board: NATH's board of directors are seasoned and experienced ( 20.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$352,91011 Feb 19
Brian Genson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$70.58
SellUS$79,75027 Nov 18
Ronald DeVos
EntityIndividual
Role
Chief Financial Officer
VP of Finance
Shares1,100
Max PriceUS$72.50
SellUS$514,36020 Nov 18
Robert Eide
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,362
Max PriceUS$70.03
SellUS$26,03514 Nov 18
Brian Genson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares370
Max PriceUS$70.36

Ownership Breakdown


Management Team

  • Howard Lorber (70yo)

    Executive Chairman of the Board

    • Tenure: 12.8yrs
    • Compensation: US$1.02m
  • Ronald DeVos (64yo)

    VP of Finance

    • Tenure: 24.8yrs
    • Compensation: US$441.92k
  • Eric Gatoff (50yo)

    CEO & Director

    • Tenure: 12.8yrs
    • Compensation: US$1.31m
  • James Walker (51yo)

    Senior Vice President of Restaurants

    • Tenure: 0.4yrs
  • Leigh Platte (60yo)

    Senior Vice President of Food Service

    • Tenure: 1.1yrs
    • Compensation: US$333.67k

Board Members

  • Attilio Petrocelli (75yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$26.00k
  • Howard Lorber (70yo)

    Executive Chairman of the Board

    • Tenure: 12.8yrs
    • Compensation: US$1.02m
  • Wayne Norbitz (71yo)

    Director

    • Tenure: 30.8yrs
    • Compensation: US$27.00k
  • Bob Eide (67yo)

    Independent Director

    • Tenure: 32.8yrs
    • Compensation: US$35.00k
  • Brian Genson (70yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$37.00k
  • Barry Leistner (68yo)

    Independent Director

    • Tenure: 30.8yrs
    • Compensation: US$36.00k
  • Charles Raich (76yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$27.00k
  • Eric Gatoff (50yo)

    CEO & Director

    • Tenure: 12.8yrs
    • Compensation: US$1.31m

Company Information

Nathan's Famous, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nathan's Famous, Inc.
  • Ticker: NATH
  • Exchange: NasdaqGS
  • Founded: 1916
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$308.134m
  • Shares outstanding: 4.23m
  • Website: https://www.nathansfamous.com

Number of Employees


Location

  • Nathan's Famous, Inc.
  • One Jericho Plaza
  • Second Floor - Wing A
  • Jericho
  • New York
  • 11753
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NATHNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1993
NFADB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1993

Biography

Nathan's Famous, Inc., together with its subsidiaries, operates in the foodservice industry. The company owns and franchises restaurants under the Nathan’s Famous brand name, as well as sells products bear ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:17
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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