Shake Shack Stock Buy Hold or Sell Recommendation

SHAK Stock  USD 87.48  4.71  5.69%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Shake Shack is 'Hold'. The recommendation algorithm takes into account all of Shake Shack's available fundamental, technical, and predictive indicators you will find on this site.
  
Check out Shake Shack Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Shake Stock please use our How to buy in Shake Stock guide.
Note, we conduct extensive research on individual companies such as Shake and provide practical buy, sell, or hold advice based on investors' constraints. Shake Shack. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.

Execute Shake Shack Buy or Sell Advice

The Shake recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Shake Shack. Macroaxis does not own or have any residual interests in Shake Shack or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Shake Shack's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Shake ShackBuy Shake Shack
Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Shake Shack has a Risk Adjusted Performance of (0.16), Jensen Alpha of (0.50), Total Risk Alpha of (0.23) and Treynor Ratio of (0.48)
Macroaxis provides recommendation on Shake Shack to complement and cross-verify current analyst consensus on Shake Shack. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Shake Shack is not overpriced, please validate all Shake Shack fundamentals, including its ebitda, cash flow from operations, and the relationship between the price to book and total debt . Given that Shake Shack has a price to earning of 112.61 X, we advise you to double-check Shake Shack market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Shake Shack Trading Alerts and Improvement Suggestions

Shake Shack generated a negative expected return over the last 90 days
Shake Shack has high historical volatility and very poor performance
Over 95.0% of the company shares are owned by institutional investors
Latest headline from finance.yahoo.com: Wendys Benefits From Robust Comps Growth Amid High Costs

Shake Shack Returns Distribution Density

The distribution of Shake Shack's historical returns is an attempt to chart the uncertainty of Shake Shack's future price movements. The chart of the probability distribution of Shake Shack daily returns describes the distribution of returns around its average expected value. We use Shake Shack price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Shake Shack returns is essential to provide solid investment advice for Shake Shack.
Mean Return
-0.64
Value At Risk
-5.33
Potential Upside
5.69
Standard Deviation
3.36
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Shake Shack historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Shake Stock Institutional Investors

Shares
T. Rowe Price Investment Management,inc.2024-12-31
728.6 K
Van Berkom And Associates Inc2024-12-31
660.2 K
Goldman Sachs Group Inc2024-12-31
598.4 K
Wasatch Advisors Lp2024-12-31
566.4 K
Driehaus Capital Management Llc2024-12-31
511.2 K
Ubs Group Ag2024-12-31
502.1 K
Squarepoint Ops Llc2024-12-31
500.2 K
Nuveen Asset Management, Llc2024-12-31
487.5 K
Bnp Paribas Investment Partners Sa2024-12-31
462.4 K
Blackrock Inc2024-12-31
6.1 M
Vanguard Group Inc2024-12-31
4.4 M
Note, although Shake Shack's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Shake Shack Cash Flow Accounts

202020212022202320242025 (projected)
Change To Inventory(667K)(962K)(334K)(1.2M)(610K)(640.5K)
Change In Cash109.8M155.5M(71.9M)(5.9M)96.1M100.9M
Free Cash Flow(31.7M)(43.1M)(65.8M)(14.0M)35.7M37.4M
Depreciation50.2M60.2M74.3M93.0M104.6M109.8M
Other Non Cash Items57.0M54.0M62.6M70.0M40.9M42.9M
Capital Expenditures69.0M101.5M142.6M146.2M135.5M84.0M
Net Income(45.5M)(10.1M)(26.0M)21.0M10.8M11.4M
End Period Cash Flow146.9M302.4M230.5M224.7M320.7M336.7M
Investments(359K)(43.4M)(143.4M)(174.5M)(66.1M)(69.4M)
Net Borrowings(286K)(64K)(169K)(3.0M)(2.7M)(2.5M)
Dividends Paid751K7.8M1.8M3.2M1.6M1.6M
Change To Netincome2.2M16.3M(43K)12.4M14.3M10.3M
Change Receivables10.7M1.0M(4.2M)9.1M10.5M11.0M

Shake Shack Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Shake Shack or Hotels, Restaurants & Leisure sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Shake Shack's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Shake stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
-0.5
β
Beta against Dow Jones1.35
σ
Overall volatility
3.42
Ir
Information ratio -0.16

Shake Shack Volatility Alert

Shake Shack exhibits very low volatility with skewness of 0.36 and kurtosis of 3.12. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Shake Shack's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Shake Shack's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Shake Shack Implied Volatility

Shake Shack's implied volatility exposes the market's sentiment of Shake Shack stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Shake Shack's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Shake Shack stock will not fluctuate a lot when Shake Shack's options are near their expiration.

Shake Shack Fundamentals Vs Peers

Comparing Shake Shack's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Shake Shack's direct or indirect competition across all of the common fundamentals between Shake Shack and the related equities. This way, we can detect undervalued stocks with similar characteristics as Shake Shack or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Shake Shack's fundamental indicators could also be used in its relative valuation, which is a method of valuing Shake Shack by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Shake Shack to competition
FundamentalsShake ShackPeer Average
Return On Equity0.0225-0.31
Return On Asset0.0134-0.14
Profit Margin0.01 %(1.27) %
Operating Margin0.04 %(5.51) %
Current Valuation4 B16.62 B
Shares Outstanding40.08 M571.82 M
Shares Owned By Insiders5.17 %10.09 %
Shares Owned By Institutions94.83 %39.21 %
Number Of Shares Shorted4.18 M4.71 M
Price To Earning112.61 X28.72 X
Price To Book7.46 X9.51 X
Price To Sales2.97 X11.42 X
Revenue1.25 B9.43 B
Gross Profit480.85 M27.38 B
EBITDA120.89 M3.9 B
Net Income10.82 M570.98 M
Cash And Equivalents357.96 M2.7 B
Cash Per Share9.11 X5.01 X
Total Debt796.92 M5.32 B
Debt To Equity1.65 %48.70 %
Current Ratio2.89 X2.16 X
Book Value Per Share11.73 X1.93 K
Cash Flow From Operations171.16 M971.22 M
Short Ratio2.73 X4.00 X
Earnings Per Share0.24 X3.12 X
Price To Earnings To Growth2.55 X4.89 X
Target Price134.64
Number Of Employees12.83 K18.84 K
Beta1.9-0.15
Market Capitalization3.72 B19.03 B
Total Asset1.7 B29.47 B
Retained Earnings26.98 M9.33 B
Working Capital180.9 M1.48 B
Note: Acquisition by Robert Lynch of 18417 shares of Shake Shack subject to Rule 16b-3 [view details]

Shake Shack Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Shake . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Shake Shack Buy or Sell Advice

When is the right time to buy or sell Shake Shack? Buying financial instruments such as Shake Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Shake Shack in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Millennials Best Thematic Idea Now

Millennials Best
Millennials Best Theme
Companies or funds that provide products or services that appeal to the generation of millennials and that are expected to experience growth in the next 5 years. The millennial generation usually refers to the demographic population that were born between 1980 to 2000. The Millennials Best theme has 49 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Millennials Best Theme or any other thematic opportunities.
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When determining whether Shake Shack is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Shake Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Shake Shack Stock. Highlighted below are key reports to facilitate an investment decision about Shake Shack Stock:
Check out Shake Shack Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Shake Stock please use our How to buy in Shake Stock guide.
You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Shake Shack. If investors know Shake will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Shake Shack listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.318
Earnings Share
0.24
Revenue Per Share
31.449
Quarterly Revenue Growth
0.148
Return On Assets
0.0134
The market value of Shake Shack is measured differently than its book value, which is the value of Shake that is recorded on the company's balance sheet. Investors also form their own opinion of Shake Shack's value that differs from its market value or its book value, called intrinsic value, which is Shake Shack's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Shake Shack's market value can be influenced by many factors that don't directly affect Shake Shack's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Shake Shack's value and its price as these two are different measures arrived at by different means. Investors typically determine if Shake Shack is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shake Shack's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.