BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
NYSE:EAT - New York Stock Exchange, Inc. - US1096411004 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to EAT. EAT was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of EAT get a neutral evaluation. Nothing too spectacular is happening here. EAT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EAT was profitable.
EAT had a positive operating cash flow in the past year.
In the past 5 years EAT has always been profitable.
EAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EAT has a better Return On Assets (12.95%) than 89.55% of its industry peers.
EAT has a better Return On Equity (128.61%) than 99.25% of its industry peers.
EAT's Return On Invested Capital of 20.59% is amongst the best of the industry. EAT outperforms 91.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EAT is significantly below the industry average of 14.01%.
The last Return On Invested Capital (20.59%) for EAT is above the 3 year average (8.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.95% | ||
| ROE | 128.61% | ||
| ROIC | 20.59% |
ROA(3y)4.95%
ROA(5y)4.33%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.64%
ROIC(5y)8.15%
1.3 Margins
EAT's Profit Margin of 6.49% is in line compared to the rest of the industry. EAT outperforms 59.70% of its industry peers.
In the last couple of years the Profit Margin of EAT has declined.
With a Operating Margin value of 9.67%, EAT perfoms like the industry average, outperforming 51.49% of the companies in the same industry.
In the last couple of years the Operating Margin of EAT has declined.
With a Gross Margin value of 17.64%, EAT is not doing good in the industry: 88.81% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of EAT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.67% | ||
| PM (TTM) | 6.49% | ||
| GM | 17.64% |
OM growth 3Y-1.88%
OM growth 5Y-4.74%
PM growth 3Y-3.73%
PM growth 5Y-6.08%
GM growth 3Y2.6%
GM growth 5Y-6.44%
2. Health
2.1 Basic Checks
EAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, EAT has more shares outstanding
The number of shares outstanding for EAT has been increased compared to 5 years ago.
Compared to 1 year ago, EAT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.51 indicates that EAT is not in any danger for bankruptcy at the moment.
EAT's Altman-Z score of 4.51 is amongst the best of the industry. EAT outperforms 85.82% of its industry peers.
EAT has a debt to FCF ratio of 1.38. This is a very positive value and a sign of high solvency as it would only need 1.38 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.38, EAT belongs to the best of the industry, outperforming 87.31% of the companies in the same industry.
A Debt/Equity ratio of 2.00 is on the high side and indicates that EAT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.00, EAT is in line with its industry, outperforming 55.22% of the companies in the same industry.
Although EAT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 4.51 |
ROIC/WACC2.38
WACC8.66%
2.3 Liquidity
EAT has a Current Ratio of 0.28. This is a bad value and indicates that EAT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of EAT (0.28) is worse than 88.06% of its industry peers.
EAT has a Quick Ratio of 0.28. This is a bad value and indicates that EAT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.23, EAT is doing worse than 91.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 105.64% over the past year.
Measured over the past 5 years, EAT shows a small growth in Earnings Per Share. The EPS has been growing by 0.69% on average per year.
EAT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.80%.
Measured over the past years, EAT shows a small growth in Revenue. The Revenue has been growing by 6.53% on average per year.
EPS 1Y (TTM)105.64%
EPS 3Y10.06%
EPS 5Y0.69%
EPS Q2Q%114.52%
Revenue 1Y (TTM)19.8%
Revenue growth 3Y9.77%
Revenue growth 5Y6.53%
Sales Q2Q%26.13%
3.2 Future
The Earnings Per Share is expected to grow by 38.89% on average over the next years. This is a very strong growth
Based on estimates for the next years, EAT will show a small growth in Revenue. The Revenue will grow by 0.34% on average per year.
EPS Next Y114.51%
EPS Next 2Y54.71%
EPS Next 3Y38.89%
EPS Next 5YN/A
Revenue Next Year22.13%
Revenue Next 2Y13.17%
Revenue Next 3Y10.5%
Revenue Next 5Y0.34%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.30, the valuation of EAT can be described as rather expensive.
EAT's Price/Earnings ratio is a bit cheaper when compared to the industry. EAT is cheaper than 66.42% of the companies in the same industry.
EAT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.13, which indicates a rather expensive current valuation of EAT.
Based on the Price/Forward Earnings ratio, EAT is valued a bit cheaper than 60.45% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EAT to the average of the S&P500 Index (22.19), we can say EAT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.3 | ||
| Fwd PE | 18.13 |
4.2 Price Multiples
EAT's Enterprise Value to EBITDA is on the same level as the industry average.
73.88% of the companies in the same industry are more expensive than EAT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.3 | ||
| EV/EBITDA | 12.28 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EAT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as EAT's earnings are expected to grow with 38.89% in the coming years.
PEG (NY)0.19
PEG (5Y)32.14
EPS Next 2Y54.71%
EPS Next 3Y38.89%
5. Dividend
5.1 Amount
EAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
178.83
-2.43 (-1.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners104.61%
Inst Owner Change-2.23%
Ins Owners1.48%
Ins Owner Change-4.02%
Market Cap7.95B
Analysts70.83
Price Target166.92 (-6.66%)
Short Float %13.42%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-68.87%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.45%
Min EPS beat(2)2.88%
Max EPS beat(2)52.02%
EPS beat(4)3
Avg EPS beat(4)21.22%
Min EPS beat(4)-7.3%
Max EPS beat(4)52.02%
EPS beat(8)7
Avg EPS beat(8)60.45%
EPS beat(12)10
Avg EPS beat(12)44.59%
EPS beat(16)11
Avg EPS beat(16)31.69%
Revenue beat(2)2
Avg Revenue beat(2)4.6%
Min Revenue beat(2)0.71%
Max Revenue beat(2)8.48%
Revenue beat(4)4
Avg Revenue beat(4)3.64%
Min Revenue beat(4)0.71%
Max Revenue beat(4)8.48%
Revenue beat(8)4
Avg Revenue beat(8)1.24%
Revenue beat(12)6
Avg Revenue beat(12)1.03%
Revenue beat(16)6
Avg Revenue beat(16)0.55%
PT rev (1m)-0.76%
PT rev (3m)-9.85%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)11.16%
EPS NY rev (1m)0%
EPS NY rev (3m)4.66%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)4.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.3 | ||
| Fwd PE | 18.13 | ||
| P/S | 1.55 | ||
| P/FCF | 20.3 | ||
| P/OCF | 12.52 | ||
| P/B | 30.69 | ||
| P/tB | 171.31 | ||
| EV/EBITDA | 12.28 |
EPS(TTM)8.02
EY4.48%
EPS(NY)9.86
Fwd EY5.51%
FCF(TTM)8.81
FCFY4.93%
OCF(TTM)14.29
OCFY7.99%
SpS115.42
BVpS5.83
TBVpS1.04
PEG (NY)0.19
PEG (5Y)32.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.95% | ||
| ROE | 128.61% | ||
| ROCE | 26.06% | ||
| ROIC | 20.59% | ||
| ROICexc | 20.78% | ||
| ROICexgc | 23.42% | ||
| OM | 9.67% | ||
| PM (TTM) | 6.49% | ||
| GM | 17.64% | ||
| FCFM | 7.63% |
ROA(3y)4.95%
ROA(5y)4.33%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.64%
ROIC(5y)8.15%
ROICexc(3y)8.8%
ROICexc(5y)8.29%
ROICexgc(3y)9.93%
ROICexgc(5y)9.39%
ROCE(3y)10.94%
ROCE(5y)10.31%
ROICexcg growth 3Y2.79%
ROICexcg growth 5Y-16.57%
ROICexc growth 3Y3.26%
ROICexc growth 5Y-14.21%
OM growth 3Y-1.88%
OM growth 5Y-4.74%
PM growth 3Y-3.73%
PM growth 5Y-6.08%
GM growth 3Y2.6%
GM growth 5Y-6.44%
F-Score8
Asset Turnover1.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 1.38 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 125.66% | ||
| Cap/Sales | 4.74% | ||
| Interest Coverage | 7.92 | ||
| Cash Conversion | 92.03% | ||
| Profit Quality | 117.56% | ||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 4.51 |
F-Score8
WACC8.66%
ROIC/WACC2.38
Cap/Depr(3y)105.87%
Cap/Depr(5y)88.92%
Cap/Sales(3y)4.31%
Cap/Sales(5y)3.83%
Profit Quality(3y)99.94%
Profit Quality(5y)217.03%
High Growth Momentum
Growth
EPS 1Y (TTM)105.64%
EPS 3Y10.06%
EPS 5Y0.69%
EPS Q2Q%114.52%
EPS Next Y114.51%
EPS Next 2Y54.71%
EPS Next 3Y38.89%
EPS Next 5YN/A
Revenue 1Y (TTM)19.8%
Revenue growth 3Y9.77%
Revenue growth 5Y6.53%
Sales Q2Q%26.13%
Revenue Next Year22.13%
Revenue Next 2Y13.17%
Revenue Next 3Y10.5%
Revenue Next 5Y0.34%
EBIT growth 1Y99.88%
EBIT growth 3Y7.71%
EBIT growth 5Y1.48%
EBIT Next Year171.89%
EBIT Next 3Y45.98%
EBIT Next 5YN/A
FCF growth 1Y516.69%
FCF growth 3Y-6.83%
FCF growth 5Y37.67%
OCF growth 1Y163.05%
OCF growth 3Y4.5%
OCF growth 5Y14.68%