DINE BRANDS GLOBAL INC (DIN) Stock Fundamental Analysis
NYSE:DIN - New York Stock Exchange, Inc. - US2544231069 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to DIN. DIN was compared to 136 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of DIN while its profitability can be described as average. DIN is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
DIN had positive earnings in the past year.
DIN had a positive operating cash flow in the past year.
Of the past 5 years DIN 4 years were profitable.
DIN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DIN (3.52%) is better than 60.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.94%, DIN is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DIN is below the industry average of 14.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | N/A | ||
| ROIC | 9.94% |
ROA(3y)4.39%
ROA(5y)2.58%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.53%
ROIC(5y)9.11%
1.3 Margins
DIN has a Profit Margin of 7.75%. This is in the better half of the industry: DIN outperforms 63.97% of its industry peers.
In the last couple of years the Profit Margin of DIN has declined.
Looking at the Operating Margin, with a value of 20.65%, DIN is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
DIN's Operating Margin has declined in the last couple of years.
DIN has a Gross Margin (46.20%) which is in line with its industry peers.
DIN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.65% | ||
| PM (TTM) | 7.75% | ||
| GM | 46.2% |
OM growth 3Y-1.33%
OM growth 5Y-2.03%
PM growth 3Y-10.09%
PM growth 5Y-6.88%
GM growth 3Y3.34%
GM growth 5Y1.9%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DIN is still creating some value.
Compared to 1 year ago, DIN has less shares outstanding
Compared to 5 years ago, DIN has less shares outstanding
DIN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.96, we must say that DIN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.96, DIN is not doing good in the industry: 69.12% of the companies in the same industry are doing better.
The Debt to FCF ratio of DIN is 13.29, which is on the high side as it means it would take DIN, 13.29 years of fcf income to pay off all of its debts.
DIN's Debt to FCF ratio of 13.29 is in line compared to the rest of the industry. DIN outperforms 50.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.29 | ||
| Altman-Z | 0.96 |
ROIC/WACC1.37
WACC7.25%
2.3 Liquidity
DIN has a Current Ratio of 0.87. This is a bad value and indicates that DIN is not financially healthy enough and could expect problems in meeting its short term obligations.
DIN has a Current ratio of 0.87. This is comparable to the rest of the industry: DIN outperforms 49.26% of its industry peers.
DIN has a Quick Ratio of 0.87. This is a bad value and indicates that DIN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DIN (0.87) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for DIN have decreased strongly by -19.55% in the last year.
Measured over the past years, DIN shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.07% on average per year.
The Revenue has decreased by -2.26% in the past year.
The Revenue has been decreasing by -2.25% on average over the past years.
EPS 1Y (TTM)-19.55%
EPS 3Y-6.57%
EPS 5Y-5.07%
EPS Q2Q%-37.86%
Revenue 1Y (TTM)-2.26%
Revenue growth 3Y-3.22%
Revenue growth 5Y-2.25%
Sales Q2Q%-0.74%
3.2 Future
The Earnings Per Share is expected to grow by 6.51% on average over the next years.
The Revenue is expected to grow by 3.82% on average over the next years.
EPS Next Y-0.68%
EPS Next 2Y0.77%
EPS Next 3Y6.51%
EPS Next 5YN/A
Revenue Next Year7.28%
Revenue Next 2Y4.46%
Revenue Next 3Y3.82%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
DIN is valuated cheaply with a Price/Earnings ratio of 3.81.
DIN's Price/Earnings ratio is rather cheap when compared to the industry. DIN is cheaper than 99.26% of the companies in the same industry.
DIN is valuated cheaply when we compare the Price/Earnings ratio to 23.99, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 3.84, the valuation of DIN can be described as very cheap.
100.00% of the companies in the same industry are more expensive than DIN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, DIN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.81 | ||
| Fwd PE | 3.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DIN indicates a rather cheap valuation: DIN is cheaper than 86.03% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DIN indicates a rather cheap valuation: DIN is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.39 | ||
| EV/EBITDA | 6.65 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.77%
EPS Next 3Y6.51%
5. Dividend
5.1 Amount
DIN has a Yearly Dividend Yield of 9.96%, which is a nice return.
The stock price of DIN dropped by -26.11% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
DIN's Dividend Yield is rather good when compared to the industry average which is at 3.65. DIN pays more dividend than 97.79% of the companies in the same industry.
DIN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.96% |
5.2 History
The dividend of DIN decreases each year by -5.76%.
DIN has paid a dividend for at least 10 years, which is a reliable track record.
DIN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-5.76%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
DIN pays out 49.70% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP49.7%
EPS Next 2Y0.77%
EPS Next 3Y6.51%
20.38
+0.41 (+2.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners96.63%
Inst Owner Change-2.61%
Ins Owners2.23%
Ins Owner Change11.05%
Market Cap318.74M
Analysts67.14
Price Target29.73 (45.88%)
Short Float %18.11%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.96% |
Yearly Dividend2.04
Dividend Growth(5Y)-5.76%
DP49.7%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-14.87%
Min EPS beat(2)-35.97%
Max EPS beat(2)6.22%
EPS beat(4)2
Avg EPS beat(4)-10.67%
Min EPS beat(4)-35.97%
Max EPS beat(4)6.22%
EPS beat(8)6
Avg EPS beat(8)2.3%
EPS beat(12)9
Avg EPS beat(12)4.73%
EPS beat(16)13
Avg EPS beat(16)11.52%
Revenue beat(2)1
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-2.75%
Max Revenue beat(2)1.09%
Revenue beat(4)1
Avg Revenue beat(4)-1.9%
Min Revenue beat(4)-3.09%
Max Revenue beat(4)1.09%
Revenue beat(8)2
Avg Revenue beat(8)-1.14%
Revenue beat(12)3
Avg Revenue beat(12)-1.15%
Revenue beat(16)6
Avg Revenue beat(16)-0.91%
PT rev (1m)-2.39%
PT rev (3m)-23.6%
EPS NQ rev (1m)-0.98%
EPS NQ rev (3m)-12.03%
EPS NY rev (1m)-0.8%
EPS NY rev (3m)-10.93%
Revenue NQ rev (1m)0.72%
Revenue NQ rev (3m)5.55%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)6.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.81 | ||
| Fwd PE | 3.84 | ||
| P/S | 0.39 | ||
| P/FCF | 3.39 | ||
| P/OCF | 2.95 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.65 |
EPS(TTM)5.35
EY26.25%
EPS(NY)5.31
Fwd EY26.07%
FCF(TTM)6.02
FCFY29.52%
OCF(TTM)6.92
OCFY33.93%
SpS51.94
BVpS-13.81
TBVpS-66.51
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | N/A | ||
| ROCE | 12.47% | ||
| ROIC | 9.94% | ||
| ROICexc | 11.55% | ||
| ROICexgc | 40.01% | ||
| OM | 20.65% | ||
| PM (TTM) | 7.75% | ||
| GM | 46.2% | ||
| FCFM | 11.58% |
ROA(3y)4.39%
ROA(5y)2.58%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.53%
ROIC(5y)9.11%
ROICexc(3y)12.35%
ROICexc(5y)11.02%
ROICexgc(3y)46.45%
ROICexgc(5y)37.65%
ROCE(3y)13.2%
ROCE(5y)11.43%
ROICexcg growth 3Y4.35%
ROICexcg growth 5Y9.6%
ROICexc growth 3Y-2.66%
ROICexc growth 5Y1.84%
OM growth 3Y-1.33%
OM growth 5Y-2.03%
PM growth 3Y-10.09%
PM growth 5Y-6.88%
GM growth 3Y3.34%
GM growth 5Y1.9%
F-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.29 | ||
| Debt/EBITDA | 5.53 | ||
| Cap/Depr | 35.93% | ||
| Cap/Sales | 1.73% | ||
| Interest Coverage | 2.12 | ||
| Cash Conversion | 52.27% | ||
| Profit Quality | 149.41% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 0.96 |
F-Score6
WACC7.25%
ROIC/WACC1.37
Cap/Depr(3y)77.72%
Cap/Depr(5y)60.15%
Cap/Sales(3y)3.36%
Cap/Sales(5y)2.71%
Profit Quality(3y)105.64%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-19.55%
EPS 3Y-6.57%
EPS 5Y-5.07%
EPS Q2Q%-37.86%
EPS Next Y-0.68%
EPS Next 2Y0.77%
EPS Next 3Y6.51%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.26%
Revenue growth 3Y-3.22%
Revenue growth 5Y-2.25%
Sales Q2Q%-0.74%
Revenue Next Year7.28%
Revenue Next 2Y4.46%
Revenue Next 3Y3.82%
Revenue Next 5YN/A
EBIT growth 1Y-10.66%
EBIT growth 3Y-4.51%
EBIT growth 5Y-4.23%
EBIT Next Year23.1%
EBIT Next 3Y8.54%
EBIT Next 5YN/A
FCF growth 1Y0.13%
FCF growth 3Y-19.3%
FCF growth 5Y-7.08%
OCF growth 1Y-17.52%
OCF growth 3Y-17.95%
OCF growth 5Y-6.97%