NATH (NATH) Stock Analysis
Verdict: HOLD
Asset-light licensing powers 17.7% operating margins, but EPS contraction (-16.8%) and a 20.2x P/E cap upside in an illiquid microcap.
Investment score: 52/100
The model views Nathan's Famous as a robust royalty-driven business facing near-term earnings headwinds. While asset-light licensing generates impressive 17.73% operating margins and reliable cash flow, FY2026 net income declined to $20.02M (-16.7% YoY) amid input cost pressures. At 20.23x P/E and EV/EBITDA of 13.53x, the stock is fairly valued relative to peer LOCO (12.31x) and FWRG (35.33x), warranting a HOLD rating.
Peers
| Peer | P/E | P/B | P/S | EV/EBITDA | ROIC % | Net margin % |
|---|---|---|---|---|---|---|
| FWRG | 35.33 | 1.01 | 0.49 | 16.50 | — | 0.01 |
| DNUT | -5.65 | 0.87 | 0.37 | 9.46 | — | -0.07 |
| LOCO | 12.31 | 1.36 | 0.88 | 9.89 | — | 0.07 |
| KRUS | -208.12 | 1.86 | 1.35 | 58.69 | — | -0.01 |
| SERV | -1.75 | 0.98 | 42.61 | -1.59 | — | -23.16 |