NasdaqGS:NATH

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

NATH

-0.09%

US Hospitality

-1.1%

US Market


1 Year Return

-33.5%

NATH

-16.2%

US Hospitality

15.6%

US Market

Return vs Industry: NATH underperformed the US Hospitality industry which returned -13.5% over the past year.

Return vs Market: NATH underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

NATHIndustryMarket
7 Day-1.0%-0.09%-1.1%
30 Day-4.4%-0.2%4.2%
90 Day-3.0%14.5%6.3%
1 Year-31.9%-33.5%-14.8%-16.2%18.2%15.6%
3 Year-30.6%-37.7%-10.3%-16.0%39.6%30.4%
5 Year38.0%23.9%14.7%2.6%79.5%59.2%

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 compared to its fair value and its price relative to the market?

10.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NATH ($50.8) is trading below our estimate of fair value ($56.57)

Significantly Below Fair Value: NATH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NATH is good value based on its PE Ratio (17.7x) compared to the US Hospitality industry average (26.8x).

PE vs Market: NATH is good value based on its PE Ratio (17.7x) compared to the US market (19.2x).


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?

63.7%

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

Past Performance

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

20.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NATH has high quality earnings.

Growing Profit Margin: NATH's current net profit margins (13.3%) are lower than last year (21.6%).


Past Earnings Growth Analysis

Earnings Trend: NATH's earnings have grown significantly by 20.8% 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 (-45.3%) over the past year, making it difficult to compare to the Hospitality industry average (-46.5%).


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 (11.2%).

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?

2.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NATH's dividend (2.76%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: NATH's dividend (2.76%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.7%), 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?

1.4yrs

Average management tenure


CEO

Eric Gatoff (51 yo)

13.75yrs

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 ($USD1.07M) is about average for companies of similar size in the US market ($USD1.23M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Howard Lorber
Executive Chairman of the Board13.75yrsUS$1.02m23.7%
$ 49.3m
Eric Gatoff
CEO & Director13.75yrsUS$1.07m1.91%
$ 4.0m
Robert Steinberg
VP of Finance0.33yrno datano data
Jim Hicks
Director of Operational Services & Training0.83yrno datano data
Leigh Platte
Senior Vice President of Food Service2.08yrsUS$333.67k0.024%
$ 49.3k
James Walker
Senior Vice President of Restaurants1.42yrsno datano data

1.4yrs

Average Tenure

52yo

Average Age

Experienced Management: NATH's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Howard Lorber
Executive Chairman of the Board13.75yrsUS$1.02m23.7%
$ 49.3m
Eric Gatoff
CEO & Director13.75yrsUS$1.07m1.91%
$ 4.0m
Attilio Petrocelli
Lead Independent Directorno dataUS$24.00k2.84%
$ 5.9m
Wayne Norbitz
Director31.75yrsUS$25.00kno data
Robert Eide
Independent Director33.75yrsUS$35.00k0.43%
$ 898.0k
Brian Genson
Independent Director21.75yrsUS$35.00k0.41%
$ 855.7k
Barry Leistner
Independent Director31.75yrsUS$32.00k1.04%
$ 2.2m
Charles Raich
Independent Director16.75yrsUS$26.00k1.12%
$ 2.3m
Andrew Levine
Independent Member of Board0.33yrno datano data

19.3yrs

Average Tenure

71yo

Average Age

Experienced Board: NATH's board of directors are seasoned and experienced ( 19.3 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$207.834m
  • 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

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 Analysis2020/10/27 00:31
End of Day Share Price2020/10/26 00:00
Earnings2020/06/28
Annual Earnings2020/03/29


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.