BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
NYSE:EAT - US1096411004 - Common Stock
155.98 USD
+0.45 (+0.29%)
155.69 USD
-0.29 (-0.19%)
EAT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 131 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 has a valuation in line with the averages, but it does not seem to be growing.
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.
In the past 5 years EAT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 12.95%, EAT belongs to the best of the industry, outperforming 90.84% of the companies in the same industry.
EAT has a Return On Equity of 128.61%. This is amongst the best in the industry. EAT outperforms 97.71% of its industry peers.
EAT's Return On Invested Capital of 20.59% is amongst the best of the industry. EAT outperforms 93.89% of its industry peers.
EAT had an Average Return On Invested Capital over the past 3 years of 8.64%. This is significantly below the industry average of 15.87%.
The 3 year average ROIC (8.64%) for EAT is below the current ROIC(20.59%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (6.49%) than 61.07% of its industry peers.
EAT's Profit Margin has declined in the last couple of years.
EAT has a Operating Margin (9.67%) which is in line with its industry peers.
EAT's Operating Margin has declined in the last couple of years.
EAT has a Gross Margin of 17.64%. This is amonst the worse of the industry: EAT underperforms 88.55% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EAT is creating value.
The number of shares outstanding for EAT has been reduced compared to 1 year ago.
Compared to 5 years ago, EAT has less shares outstanding
The debt/assets ratio for EAT has been reduced compared to a year ago.
2.2 Solvency
EAT has an Altman-Z score of 4.25. This indicates that EAT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.25, EAT belongs to the top of the industry, outperforming 81.68% of the companies in the same industry.
The Debt to FCF ratio of EAT is 1.38, which is an excellent value as it means it would take EAT, only 1.38 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.38, EAT belongs to the best of the industry, outperforming 88.55% of the companies in the same industry.
EAT has a Debt/Equity ratio of 2.00. This is a high value indicating a heavy dependency on external financing.
EAT's Debt to Equity ratio of 2.00 is in line compared to the rest of the industry. EAT outperforms 51.91% of its industry peers.
Even though the debt/equity ratio score it not favorable for EAT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 4.25 |
ROIC/WACC2.29
WACC8.98%
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.
With a Current ratio value of 0.28, EAT is not doing good in the industry: 90.08% of the companies in the same industry are doing better.
A Quick Ratio of 0.23 indicates that EAT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.23, EAT is doing worse than 90.84% 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 116.02% over the past year.
EAT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.36% yearly.
EPS 1Y (TTM)116.02%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%54.66%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%21%
3.2 Future
Based on estimates for the next years, EAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.63% on average per year.
EAT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.49% yearly.
EPS Next Y17.13%
EPS Next 2Y15.33%
EPS Next 3Y13.63%
EPS Next 5YN/A
Revenue Next Year6.2%
Revenue Next 2Y5.64%
Revenue Next 3Y4.77%
Revenue Next 5Y-3.49%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.53, EAT is valued on the expensive side.
77.10% of the companies in the same industry are more expensive than EAT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.08, EAT is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.96, which indicates a correct valuation of EAT.
Based on the Price/Forward Earnings ratio, EAT is valued a bit cheaper than the industry average as 74.81% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of EAT to the average of the S&P500 Index (22.72), we can say EAT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.53 | ||
| Fwd PE | 14.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EAT is valued a bit cheaper than 64.89% of the companies in the same industry.
EAT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EAT is cheaper than 80.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.71 | ||
| EV/EBITDA | 10.78 |
4.3 Compensation for Growth
EAT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EAT has a very decent profitability rating, which may justify a higher PE ratio.
EAT's earnings are expected to grow with 13.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.02
PEG (5Y)0.47
EPS Next 2Y15.33%
EPS Next 3Y13.63%
5. Dividend
5.1 Amount
No dividends for EAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
155.98
+0.45 (+0.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners105.34%
Inst Owner Change3.95%
Ins Owners1.42%
Ins Owner Change5.03%
Market Cap6.94B
Analysts70.83
Price Target180.17 (15.51%)
Short Float %12.15%
Short Ratio3.85
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)5.03%
Min Revenue beat(2)1.58%
Max Revenue beat(2)8.48%
Revenue beat(4)4
Avg Revenue beat(4)3.85%
Min Revenue beat(4)1.58%
Max Revenue beat(4)8.48%
Revenue beat(8)4
Avg Revenue beat(8)1.34%
Revenue beat(12)6
Avg Revenue beat(12)1.11%
Revenue beat(16)6
Avg Revenue beat(16)0.6%
PT rev (1m)5.09%
PT rev (3m)7.11%
EPS NQ rev (1m)1.17%
EPS NQ rev (3m)3.81%
EPS NY rev (1m)0.7%
EPS NY rev (3m)0.98%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.53 | ||
| Fwd PE | 14.96 | ||
| P/S | 1.35 | ||
| P/FCF | 17.71 | ||
| P/OCF | 10.92 | ||
| P/B | 26.77 | ||
| P/tB | 149.42 | ||
| EV/EBITDA | 10.78 |
EPS(TTM)8.9
EY5.71%
EPS(NY)10.42
Fwd EY6.68%
FCF(TTM)8.81
FCFY5.65%
OCF(TTM)14.29
OCFY9.16%
SpS115.42
BVpS5.83
TBVpS1.04
PEG (NY)1.02
PEG (5Y)0.47
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 | 4.25 |
F-Score8
WACC8.98%
ROIC/WACC2.29
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)116.02%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%54.66%
EPS Next Y17.13%
EPS Next 2Y15.33%
EPS Next 3Y13.63%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%21%
Revenue Next Year6.2%
Revenue Next 2Y5.64%
Revenue Next 3Y4.77%
Revenue Next 5Y-3.49%
EBIT growth 1Y99.88%
EBIT growth 3Y7.71%
EBIT growth 5Y1.48%
EBIT Next Year174.7%
EBIT Next 3Y46.45%
EBIT Next 5Y35.85%
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%