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.

Risks

  • Nathan's Famous is not covered by any analysts.

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

-4.4%

NasdaqGS:NATH

2.2%

US Hospitality

0.2%

US Market


1 Year Return

-25.9%

NasdaqGS:NATH

-5.4%

US Hospitality

-0.7%

US Market

NATH underperformed the Hospitality industry which returned -5.1% over the past year.

NATH underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

NATHIndustryMarket
7 Day-4.4%2.2%0.2%
30 Day-11.1%-2.7%-2.7%
90 Day0.7%0.7%1.6%
1 Year-24.7%-25.9%-3.1%-5.4%1.6%-0.7%
3 Year47.8%36.5%43.4%34.3%40.0%30.9%
5 Year95.2%19.0%34.5%19.8%53.8%36.8%

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?

12.6x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Nathan's Famous's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Nathan's Famous's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Nathan's Famous is good value based on earnings compared to the US Hospitality industry average.

Nathan's Famous is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Nathan's Famous, we can't assess if its growth is good value.


Price Based on Value of Assets

Nathan's Famous has negative assets, we can't compare the value of its assets 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?

18.8%

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

Nathan's Famous's year on year earnings growth rate has been positive over the past 5 years.

Nathan's Famous's 1-year earnings growth exceeds its 5-year average (380.5% vs 9.9%)

Nathan's Famous's earnings growth has exceeded the US Hospitality industry average in the past year (380.5% vs -8.7%).


Return on Equity

It is difficult to establish if Nathan's Famous has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

Nathan's Famous used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Nathan's Famous's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Nathan's Famous's financial position?


Financial Position Analysis

Nathan's Famous is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Nathan's Famous's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Nathan's Famous has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Nathan's Famous's debt level has increased considering it has negative shareholder equity.

Debt is not well covered by operating cash flow (8.9%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.9x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Nathan's Famous 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?

2.11%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Nathan's Famous before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Nathan's Famous's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

Nathan's Famous's dividend is below the markets top 25% of dividend payers in United States of America (3.83%).

It is too early to tell whether Nathan's Famous has stable dividend payments.

Nathan's Famous only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.8x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

6.8yrs

Average management tenure


CEO

Eric Gatoff (50yo)

12.6yrs

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

Eric's remuneration is about average for companies of similar size in United States of America.

Eric's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.8yrs

Average Tenure

60yo

Average Age

The average tenure for the Nathan's Famous management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

20.6yrs

Average Tenure

70yo

Average Age

The average tenure for the Nathan's Famous board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


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: 12.6yrs
    • Compensation: US$1.02m
  • Ronald DeVos (64yo)

    VP of Finance

    • Tenure: 24.6yrs
    • Compensation: US$441.92k
  • Eric Gatoff (50yo)

    CEO & Director

    • Tenure: 12.6yrs
    • Compensation: US$1.31m
  • James Walker (51yo)

    Senior Vice President of Restaurants

    • Tenure: 0.3yrs
  • Leigh Platte (60yo)

    Senior Vice President of Food Service

    • Tenure: 0.9yrs
    • Compensation: US$333.67k

Board Members

  • Attilio Petrocelli (75yo)

    Lead Independent Director

    • Tenure: 0.0yrs
    • Compensation: US$26.00k
  • Howard Lorber (70yo)

    Executive Chairman of the Board

    • Tenure: 12.6yrs
    • Compensation: US$1.02m
  • Wayne Norbitz (71yo)

    Director

    • Tenure: 30.6yrs
    • Compensation: US$27.00k
  • Bob Eide (67yo)

    Independent Director

    • Tenure: 32.6yrs
    • Compensation: US$35.00k
  • Brian Genson (70yo)

    Independent Director

    • Tenure: 20.6yrs
    • Compensation: US$37.00k
  • Barry Leistner (68yo)

    Independent Director

    • Tenure: 30.6yrs
    • Compensation: US$36.00k
  • Charles Raich (76yo)

    Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$27.00k
  • Eric Gatoff (50yo)

    CEO & Director

    • Tenure: 12.6yrs
    • 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$280.280m
  • 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 Analysis2019/08/20 23:41
End of Day Share Price2019/08/20 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.