📊 NATH Key Takeaways
Is Nathans Famous, Inc.. (NATH) a Good Investment?
Nathan's Famous demonstrates strong operational fundamentals with a 20% operating margin and consistent positive free cash flow of $15.4M, but these strengths are severely undermined by critical balance sheet distress: negative stockholders' equity of -$15.3M indicates technical insolvency. Sustainability hinges on maintaining operating cash flow and avoiding covenant violations while underlying business quality remains solid.
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.
Why Buy Nathans Famous, Inc.. Stock? NATH Key Strengths
- Exceptional operating margin of 20% for restaurant/retail sector demonstrates pricing power and cost discipline
- Robust free cash flow generation of $15.4M (12.1% FCF margin) indicates operational cash conversion strength despite balance sheet issues
- Strong liquidity position with current ratio of 2.73x and $24.5M cash reserves provides near-term runway
- 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: Negative stockholders' equity of -$15.3M represents technical insolvency with liabilities exceeding assets by $15.3M
- Unsustainable debt burden with $48.7M long-term debt at 2.8x annual net income; debt sustainability contingent on continued positive cash generation
- Stalling profitability growth: flat net income (+0% YoY) despite 6.9% revenue growth signals diminishing operational leverage and potential margin compression ahead
- 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
- Operating cash flow stability and trajectory—any decline below $15M would immediately threaten liquidity given debt obligations
- Stockholders' equity recovery path—monitor if retained earnings can restore positive equity or if additional leverage is required
- Debt covenant compliance and refinancing risk—critical given negative equity cushion and reliance on lender patience
- 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 2.73x 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 43% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.80 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 Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 55% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NATH's key strengths?
Claude: Exceptional operating margin of 20% for restaurant/retail sector demonstrates pricing power and cost discipline. Robust free cash flow generation of $15.4M (12.1% FCF margin) indicates operational cash conversion strength despite balance sheet issues. 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: Negative stockholders' equity of -$15.3M represents technical insolvency with liabilities exceeding assets by $15.3M. Unsustainable debt burden with $48.7M long-term debt at 2.8x annual net income; debt sustainability contingent on continued positive cash generation. 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 $127.0M.
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 $4.17.
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 rating reflects both perspectives for balanced insights.
Is NATH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Nathans Famous, Inc.. has a BUY rating with 55% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. 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 13.6% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy NATH stock in 2026?
Our dual AI analysis gives Nathans Famous, Inc.. a combined BUY rating 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 $15.7M, with capital expenditures of $332.0K. FCF margin is 12.1%.
How does NATH compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 13.6% (avg: 8%), ROE N/A (avg: 18%), current ratio 2.73 (avg: 1.5).