DARDEN RESTAURANTS INC (1DRI.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1DRI - US2371941053 - Common Stock
178.6 EUR
+178.6 (+Infinity%)
We assign a fundamental rating of 4 out of 10 to 1DRI. 1DRI was compared to 60 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of 1DRI get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, 1DRI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year 1DRI was profitable.
- In the past year 1DRI had a positive cash flow from operations.
- 1DRI had positive earnings in 4 of the past 5 years.
- 1DRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1DRI has a better Return On Assets (8.39%) than 81.67% of its industry peers.
- With an excellent Return On Equity value of 47.83%, 1DRI belongs to the best of the industry, outperforming 98.33% of the companies in the same industry.
- 1DRI has a Return On Invested Capital of 11.69%. This is in the better half of the industry: 1DRI outperforms 80.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1DRI is in line with the industry average of 11.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | 47.83% | ||
| ROIC | 11.69% |
ROA(3y)9.35%
ROA(5y)6.69%
ROE(3y)44.59%
ROE(5y)30.78%
ROIC(3y)12.5%
ROIC(5y)9.79%
1.3 Margins
- Looking at the Profit Margin, with a value of 8.96%, 1DRI is in the better half of the industry, outperforming 71.67% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1DRI has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 11.71%, 1DRI is in the better half of the industry, outperforming 61.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1DRI has grown nicely.
- Looking at the Gross Margin, with a value of 21.55%, 1DRI is doing worse than 65.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of 1DRI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.71% | ||
| PM (TTM) | 8.96% | ||
| GM | 21.55% |
OM growth 3Y6.56%
OM growth 5Y3.61%
PM growth 3Y1.04%
PM growth 5Y1.48%
GM growth 3Y0.65%
GM growth 5Y-0.41%
2. Health
2.1 Basic Checks
- 1DRI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, 1DRI has less shares outstanding
- 1DRI has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1DRI has a worse debt to assets ratio.
2.2 Solvency
- 1DRI has an Altman-Z score of 2.53. This is not the best score and indicates that 1DRI is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.53, 1DRI is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
- The Debt to FCF ratio of 1DRI is 3.63, which is a good value as it means it would take 1DRI, 3.63 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 3.63, 1DRI is doing good in the industry, outperforming 78.33% of the companies in the same industry.
- A Debt/Equity ratio of 1.69 is on the high side and indicates that 1DRI has dependencies on debt financing.
- 1DRI's Debt to Equity ratio of 1.69 is in line compared to the rest of the industry. 1DRI outperforms 48.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 3.63 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.32
WACC8.85%
2.3 Liquidity
- 1DRI has a Current Ratio of 0.39. This is a bad value and indicates that 1DRI is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1DRI has a worse Current ratio (0.39) than 78.33% of its industry peers.
- A Quick Ratio of 0.24 indicates that 1DRI may have some problems paying its short term obligations.
- With a Quick ratio value of 0.24, 1DRI is not doing good in the industry: 81.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.65% over the past year.
- 1DRI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.84% yearly.
- 1DRI shows a small growth in Revenue. In the last year, the Revenue has grown by 5.00%.
- Measured over the past years, 1DRI shows a small growth in Revenue. The Revenue has been growing by 6.00% on average per year.
EPS 1Y (TTM)4.65%
EPS 3Y27.29%
EPS 5Y8.84%
EPS Q2Q%6.87%
Revenue 1Y (TTM)5%
Revenue growth 3Y16.54%
Revenue growth 5Y6%
Sales Q2Q%6.16%
3.2 Future
- 1DRI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.58% yearly.
- 1DRI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.42% yearly.
EPS Next Y7.89%
EPS Next 2Y10.39%
EPS Next 3Y9.32%
EPS Next 5Y8.58%
Revenue Next Year5.71%
Revenue Next 2Y7.31%
Revenue Next 3Y6.07%
Revenue Next 5Y5.42%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 21.94, which indicates a rather expensive current valuation of 1DRI.
- 73.33% of the companies in the same industry are more expensive than 1DRI, based on the Price/Earnings ratio.
- 1DRI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.94.
- A Price/Forward Earnings ratio of 18.69 indicates a rather expensive valuation of 1DRI.
- 1DRI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1DRI is cheaper than 68.33% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of 1DRI to the average of the S&P500 Index (23.94), we can say 1DRI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.94 | ||
| Fwd PE | 18.69 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1DRI is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1DRI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.04 | ||
| EV/EBITDA | 14.45 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1DRI does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of 1DRI may justify a higher PE ratio.
PEG (NY)2.78
PEG (5Y)2.48
EPS Next 2Y10.39%
EPS Next 3Y9.32%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.62%, 1DRI has a reasonable but not impressive dividend return.
- 1DRI's Dividend Yield is a higher than the industry average which is at 1.29.
- 1DRI's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
5.2 History
- The dividend of 1DRI is nicely growing with an annual growth rate of 11.73%!
Dividend Growth(5Y)11.73%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1DRI pays out 61.77% of its income as dividend. This is not a sustainable payout ratio.
- 1DRI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.77%
EPS Next 2Y10.39%
EPS Next 3Y9.32%
BIT:1DRI (5/23/2025, 7:00:00 PM)
178.6
+178.6 (+Infinity%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)03-20 2025-03-20/bmo
Earnings (Next)06-20 2025-06-20/amc
Inst Owners97.09%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap20.90B
Revenue(TTM)11.76B
Net Income(TTM)1.05B
Analysts77.22
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
Yearly Dividend4.62
Dividend Growth(5Y)11.73%
DP61.77%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.64%
Min EPS beat(2)-0.85%
Max EPS beat(2)-0.42%
EPS beat(4)1
Avg EPS beat(4)-1.58%
Min EPS beat(4)-5.51%
Max EPS beat(4)0.44%
EPS beat(8)4
Avg EPS beat(8)-0.07%
EPS beat(12)7
Avg EPS beat(12)0.5%
EPS beat(16)10
Avg EPS beat(16)1.04%
Revenue beat(2)0
Avg Revenue beat(2)-2.02%
Min Revenue beat(2)-2.74%
Max Revenue beat(2)-1.3%
Revenue beat(4)0
Avg Revenue beat(4)-2%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)-1.3%
Revenue beat(8)0
Avg Revenue beat(8)-1.66%
Revenue beat(12)3
Avg Revenue beat(12)-0.96%
Revenue beat(16)6
Avg Revenue beat(16)-0.56%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.94 | ||
| Fwd PE | 18.69 | ||
| P/S | 2.01 | ||
| P/FCF | 23.04 | ||
| P/OCF | 14.21 | ||
| P/B | 10.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.45 |
EPS(TTM)8.14
EY4.56%
EPS(NY)9.55
Fwd EY5.35%
FCF(TTM)7.75
FCFY4.34%
OCF(TTM)12.57
OCFY7.04%
SpS88.64
BVpS16.6
TBVpS-6
PEG (NY)2.78
PEG (5Y)2.48
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | 47.83% | ||
| ROCE | 13.4% | ||
| ROIC | 11.69% | ||
| ROICexc | 11.95% | ||
| ROICexgc | 16.99% | ||
| OM | 11.71% | ||
| PM (TTM) | 8.96% | ||
| GM | 21.55% | ||
| FCFM | 8.74% |
ROA(3y)9.35%
ROA(5y)6.69%
ROE(3y)44.59%
ROE(5y)30.78%
ROIC(3y)12.5%
ROIC(5y)9.79%
ROICexc(3y)13%
ROICexc(5y)10.4%
ROICexgc(3y)17.56%
ROICexgc(5y)14.02%
ROCE(3y)14.29%
ROCE(5y)11.22%
ROICexgc growth 3Y19.42%
ROICexgc growth 5Y-15.22%
ROICexc growth 3Y17.25%
ROICexc growth 5Y-6.84%
OM growth 3Y6.56%
OM growth 5Y3.61%
PM growth 3Y1.04%
PM growth 5Y1.48%
GM growth 3Y0.65%
GM growth 5Y-0.41%
F-Score6
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 3.63 | ||
| Debt/EBITDA | 1.98 | ||
| Cap/Depr | 127.62% | ||
| Cap/Sales | 5.43% | ||
| Interest Coverage | 9.06 | ||
| Cash Conversion | 88.79% | ||
| Profit Quality | 97.6% | ||
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 2.53 |
F-Score6
WACC8.85%
ROIC/WACC1.32
Cap/Depr(3y)133.04%
Cap/Depr(5y)122.46%
Cap/Sales(3y)5.12%
Cap/Sales(5y)5.06%
Profit Quality(3y)94.06%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.65%
EPS 3Y27.29%
EPS 5Y8.84%
EPS Q2Q%6.87%
EPS Next Y7.89%
EPS Next 2Y10.39%
EPS Next 3Y9.32%
EPS Next 5Y8.58%
Revenue 1Y (TTM)5%
Revenue growth 3Y16.54%
Revenue growth 5Y6%
Sales Q2Q%6.16%
Revenue Next Year5.71%
Revenue Next 2Y7.31%
Revenue Next 3Y6.07%
Revenue Next 5Y5.42%
EBIT growth 1Y1.99%
EBIT growth 3Y24.19%
EBIT growth 5Y9.83%
EBIT Next Year46.69%
EBIT Next 3Y19.03%
EBIT Next 5Y13.23%
FCF growth 1Y9.1%
FCF growth 3Y2.12%
FCF growth 5Y4.77%
OCF growth 1Y12.47%
OCF growth 3Y10.52%
OCF growth 5Y5.1%
DARDEN RESTAURANTS INC / 1DRI.MI FAQ
Can you provide the ChartMill fundamental rating for DARDEN RESTAURANTS INC?
ChartMill assigns a fundamental rating of 4 / 10 to 1DRI.MI.
Can you provide the valuation status for DARDEN RESTAURANTS INC?
ChartMill assigns a valuation rating of 3 / 10 to DARDEN RESTAURANTS INC (1DRI.MI). This can be considered as Overvalued.
How profitable is DARDEN RESTAURANTS INC (1DRI.MI) stock?
DARDEN RESTAURANTS INC (1DRI.MI) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for 1DRI stock?
The Earnings per Share (EPS) of DARDEN RESTAURANTS INC (1DRI.MI) is expected to grow by 7.89% in the next year.
Is the dividend of DARDEN RESTAURANTS INC sustainable?
The dividend rating of DARDEN RESTAURANTS INC (1DRI.MI) is 4 / 10 and the dividend payout ratio is 61.77%.