📊 NATH Key Takeaways
Is Nathans Famous, Inc.. (NATH) a Good Investment?
Nathan's Famous generates strong positive operating cash flow ($18.2M) and maintains healthy profitability margins (18.6% operating margin), but faces critical structural challenges from technical insolvency. The company's negative stockholders' equity of -$14.2M combined with excessive leverage (long-term debt of $48.1M at 89.5% of total assets) creates significant solvency risk. Deteriorating earnings per share (-17.4%) despite flat net income despite 9.4% revenue growth signals margin compression and limited earnings quality.
Nathan's shows strong fundamentals with high operating and net margins, excellent ROA, and robust free cash flow supported by a low-capex, asset-light model. Liquidity is solid, but negative equity and a meaningful debt load introduce balance-sheet risk. With modest revenue growth and resilient cash generation, fundamentals skew favorable if margins and interest obligations remain well managed.
Nathans Famous, Inc.. Key Strengths (NATH)
- Positive and substantial free cash flow of $17.9M (11% FCF margin), providing debt service capacity despite balance sheet issues
- Strong profitability margins with 18.6% operating margin and 12.4% net margin, indicating operational efficiency in restaurant/retail sector
- Revenue growth of 9.4% year-over-year demonstrates consumer demand and market traction
- Good short-term liquidity with current ratio of 2.49x and quick ratio of 2.45x
- High operating and net margins indicating strong unit economics
- Robust free cash flow with minimal capex needs
- Strong liquidity (high current/quick ratios) and sizable cash balance
NATH Stock Risks: Nathans Famous, Inc.. Investment Risks
- Critical balance sheet insolvency: negative stockholders' equity of -$14.2M indicates liabilities exceed assets by $14.2M, creating structural financial distress
- Extreme leverage: long-term debt of $48.1M represents 89.5% of total assets with no meaningful debt/equity ratio; company is overleveraged relative to asset base
- Deteriorating earnings quality: EPS declined 17.4% despite flat net income, indicating margin compression, share dilution, and inability to convert revenue growth to shareholder value
- Growth investment constraints: minimal capex of only $370K suggests the company cannot invest in expansion or modernization due to leverage restrictions
- Negative book value creates bankruptcy risk if operating cash flow deteriorates or covenant violations occur
- Negative stockholders' equity and leverage heighten financial risk
- Flat net income despite revenue growth suggests margin pressure
- Exposure to input cost volatility and small scale concentration
Key Metrics to Watch
- Stockholders' equity trajectory - monitor for movement toward insolvency or recovery path
- Operating cash flow sustainability - track if positive cash generation continues to service debt obligations
- Earnings per share and operating margin trends - assess whether margin compression stabilizes or accelerates
- Debt reduction progress - measure if company can meaningfully reduce $48.1M long-term debt burden
- Gross margin and operating margin trend
- Interest coverage and debt maturity/refinancing profile
Nathans Famous, Inc.. (NATH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.49x current ratio provides a solid financial cushion.
NATH Profit Margin, ROE & Profitability Analysis
NATH vs Consumer Sector: How Nathans Famous, Inc.. Compares
How Nathans Famous, Inc.. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Nathans Famous, Inc.. Stock Overvalued? NATH Valuation Analysis 2026
Based on fundamental analysis, Nathans Famous, Inc.. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Nathans Famous, Inc.. Balance Sheet: NATH Debt, Cash & Liquidity
NATH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Nathans Famous, Inc..'s revenue has grown significantly by 41% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.87 reflects profitable operations.
NATH Revenue Growth, EPS Growth & YoY Performance
NATH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $31.5M | $3.1M | $0.75 |
| Q2 2026 | $41.1M | $5.2M | $1.26 |
| Q1 2026 | $44.8M | $8.9M | $2.16 |
| Q3 2025 | $28.9M | $2.6M | $0.64 |
| Q2 2025 | $38.7M | $5.7M | $1.40 |
| Q1 2025 | $42.0M | $7.4M | $1.81 |
| Q3 2024 | $26.2M | $2.6M | $0.64 |
| Q3 2023 | $25.9M | $2.1M | $0.52 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Nathans Famous, Inc.. Dividends, Buybacks & Capital Allocation
NATH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Nathans Famous, Inc.. (CIK: 0000069733)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NATH
What is the AI rating for NATH?
Nathans Famous, Inc.. (NATH) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NATH's key strengths?
Claude: Positive and substantial free cash flow of $17.9M (11% FCF margin), providing debt service capacity despite balance sheet issues. Strong profitability margins with 18.6% operating margin and 12.4% net margin, indicating operational efficiency in restaurant/retail sector. ChatGPT: High operating and net margins indicating strong unit economics. Robust free cash flow with minimal capex needs.
What are the risks of investing in NATH?
Claude: Critical balance sheet insolvency: negative stockholders' equity of -$14.2M indicates liabilities exceed assets by $14.2M, creating structural financial distress. Extreme leverage: long-term debt of $48.1M represents 89.5% of total assets with no meaningful debt/equity ratio; company is overleveraged relative to asset base. ChatGPT: Negative stockholders' equity and leverage heighten financial risk. Flat net income despite revenue growth suggests margin pressure.
What is NATH's revenue and growth?
Nathans Famous, Inc.. reported revenue of $162.1M.
Does NATH pay dividends?
Nathans Famous, Inc.. pays dividends, with $7.6M distributed to shareholders in the trailing twelve months.
Where can I find NATH SEC filings?
Official SEC filings for Nathans Famous, Inc.. (CIK: 0000069733) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NATH's EPS?
Nathans Famous, Inc.. has a diluted EPS of $4.85.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is NATH's fundamental grade?
Based on our AI fundamental analysis in June 2026, Nathans Famous, Inc.. has a B grade with 73% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is NATH stock overvalued or undervalued?
Valuation metrics for NATH: ROE of N/A (sector avg: 18%), net margin of 12.4% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is NATH's AI grade for 2026?
Our dual AI analysis gives Nathans Famous, Inc.. a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NATH's free cash flow?
Nathans Famous, Inc..'s operating cash flow is $18.2M, with capital expenditures of $370.0K. FCF margin is 11.0%.
How does NATH compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 12.4% (avg: 8%), ROE N/A (avg: 18%), current ratio 2.49 (avg: 1.5).