Nathan's Famous
Market Cap
US$238.1m
Last Updated
2021/01/19 23:09 UTC
Data Sources
Company Financials
Executive Summary
Nathan's Famous, Inc., together with its subsidiaries, operates in the foodservice industry. More Details
Rewards
Risk Analysis
Snowflake Analysis
Slightly overvalued with questionable track record.
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
Stable Share Price: NATH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: NATH's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-0.8%
NATH
1.4%
US Hospitality
0.3%
US Market
1 Year Return
-22.0%
NATH
-8.3%
US Hospitality
21.1%
US Market
Return vs Industry: NATH underperformed the US Hospitality industry which returned -12.2% over the past year.
Return vs Market: NATH underperformed the US Market which returned 19.5% over the past year.
Shareholder returns
| NATH | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | 1.4% | 0.3% |
| 30 Day | 3.6% | 3.1% | 3.3% |
| 90 Day | 14.2% | 23.6% | 14.2% |
| 1 Year | -20.2%-22.0% | -7.2%-8.3% | 23.8%21.1% |
| 3 Year | -17.2%-21.4% | -4.2%-10.0% | 45.0%35.4% |
| 5 Year | 23.4%10.2% | 58.5%42.7% | 127.7%102.3% |
Long-Term 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
1 week ago | Simply Wall St
Many Would Be Jealous Of Nathan's Famous' (NASDAQ:NATH) Returns On Capital3 weeks ago | Simply Wall St
We Think Nathan's Famous's (NASDAQ:NATH) Statutory Profit Might Understate Its Earnings Potential1 month ago | Simply Wall St
Three Things You Should Check Before Buying Nathan's Famous, Inc. (NASDAQ:NATH) For Its DividendValuation
Is Nathan's Famous undervalued compared to its fair value and its price relative to the market?
20.04x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NATH ($58) is trading above our estimate of fair value ($26.26)
Significantly Below Fair Value: NATH is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NATH is good value based on its PE Ratio (20x) compared to the US Hospitality industry average (35.7x).
PE vs Market: NATH is good value based on its PE Ratio (20x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate NATH's PEG Ratio to determine if it is good value.
Price to Book Ratio
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 forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
65.7%
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
- Take a look at our analysis of NATH’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- Explore growth companies in the Consumer Services industry.
Past Performance
How has Nathan's Famous performed over the past 5 years?
21.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NATH has high quality earnings.
Growing Profit Margin: NATH's current net profit margins (14.6%) are lower than last year (20.7%).
Past Earnings Growth Analysis
Earnings Trend: NATH's earnings have grown significantly by 21.4% per year over the past 5 years.
Accelerating Growth: NATH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NATH had negative earnings growth (-43.2%) over the past year, making it difficult to compare to the Hospitality industry average (-56.1%).
Return on Equity
High ROE: NATH's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
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 (10.5%).
Interest Coverage: NATH's interest payments on its debt are not well covered by EBIT (2.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Nathan's Famous's current dividend yield, its reliability and sustainability?
2.41%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NATH's dividend (2.41%) is higher than the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: NATH's dividend (2.41%) is low compared to the top 25% of dividend payers in the US market (3.85%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, NATH has been paying a dividend for less than 10 years.
Growing Dividend: NATH's dividend payments have increased, but the company has only paid a dividend for 3 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (48.4%), 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
How experienced are the management team and are they aligned to shareholders interests?
1.7yrs
Average management tenure
CEO
Eric Gatoff (51 yo)
14yrs
Tenure
US$1,072,673
Compensation
Mr. Eric Gatoff has been the Chief Executive Officer for Nathan's Famous, Inc. since January 1, 2007. Mr. Gatoff served as Vice President and Corporate Counsel of Nathan's Famous, Inc. from October 2003 to...
CEO Compensation Analysis
Compensation vs Market: Eric's total compensation ($USD1.07M) is about average for companies of similar size in the US market ($USD1.01M).
Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 14yrs | US$1.02m | 23.7% $ 56.4m | |
| CEO & Director | 14yrs | US$1.07m | 1.91% $ 4.6m | |
| VP of Finance | 0.58yr | no data | no data | |
| Director of Operational Services & Training | 1.08yrs | no data | no data | |
| Senior Vice President of Food Service | 2.33yrs | US$333.67k | 0.024% $ 56.5k | |
| Senior Vice President of Restaurants | 1.67yrs | no data | no data |
1.7yrs
Average Tenure
52yo
Average Age
Experienced Management: NATH's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 14yrs | US$1.02m | 23.7% $ 56.4m | |
| CEO & Director | 14yrs | US$1.07m | 1.91% $ 4.6m | |
| Lead Independent Director | no data | US$24.00k | 2.84% $ 6.8m | |
| Director | 32yrs | US$25.00k | no data | |
| Independent Director | 34yrs | US$35.00k | 0.43% $ 1.0m | |
| Independent Director | 22yrs | US$35.00k | 0.41% $ 980.4k | |
| Independent Director | 32yrs | US$32.00k | 0.99% $ 2.4m | |
| Independent Director | 17yrs | US$26.00k | 1.12% $ 2.7m | |
| Independent Member of Board | 0.58yr | no data | no data |
19.5yrs
Average Tenure
71yo
Average Age
Experienced Board: NATH's board of directors are seasoned and experienced ( 19.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$238.131m
- Shares outstanding: 4.11m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NATH | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Feb 1993 |
| NFA | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Feb 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/19 23:09 |
| End of Day Share Price | 2021/01/19 00:00 |
| Earnings | 2020/09/27 |
| Annual Earnings | 2020/03/29 |
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.