BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
USA - NYSE:EAT - US1096411004 - Common Stock
130.82 USD
-1.19 (-0.9%)
130.82 USD
0 (0%)
Overall EAT gets a fundamental rating of 7 out of 10. We evaluated EAT against 135 industry peers in the Hotels, Restaurants & Leisure industry. Both the health and profitability get an excellent rating, making EAT a very profitable company, without any liquidiy or solvency issues. EAT is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, EAT could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
EAT had positive earnings in the past year.
EAT had a positive operating cash flow in the past year.
EAT had positive earnings in each of the past 5 years.
EAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EAT has a Return On Assets of 14.30%. This is amongst the best in the industry. EAT outperforms 91.85% of its industry peers.
EAT has a Return On Equity of 103.29%. This is amongst the best in the industry. EAT outperforms 97.04% of its industry peers.
With an excellent Return On Invested Capital value of 24.53%, EAT belongs to the best of the industry, outperforming 94.07% of the companies in the same industry.
EAT had an Average Return On Invested Capital over the past 3 years of 14.96%. This is in line with the industry average of 15.69%.
The last Return On Invested Capital (24.53%) for EAT is above the 3 year average (14.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.3% | ||
| ROE | 103.29% | ||
| ROIC | 24.53% |
ROA(3y)8.14%
ROA(5y)6.99%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.96%
ROIC(5y)13%
1.3 Margins
EAT's Profit Margin of 7.12% is fine compared to the rest of the industry. EAT outperforms 62.96% of its industry peers.
In the last couple of years the Profit Margin of EAT has grown nicely.
With a Operating Margin value of 10.29%, EAT perfoms like the industry average, outperforming 57.78% of the companies in the same industry.
EAT's Operating Margin has improved in the last couple of years.
EAT's Gross Margin of 18.25% is on the low side compared to the rest of the industry. EAT is outperformed by 87.41% of its industry peers.
EAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.29% | ||
| PM (TTM) | 7.12% | ||
| GM | 18.25% |
OM growth 3Y27.07%
OM growth 5Y23.55%
PM growth 3Y32.03%
PM growth 5Y55.11%
GM growth 3Y14.09%
GM growth 5Y4.9%
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.
The number of shares outstanding for EAT has been reduced compared to 1 year ago.
The number of shares outstanding for EAT has been reduced compared to 5 years ago.
Compared to 1 year ago, EAT has an improved debt to assets ratio.
2.2 Solvency
EAT has an Altman-Z score of 4.11. This indicates that EAT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EAT (4.11) is better than 82.96% of its industry peers.
The Debt to FCF ratio of EAT is 1.07, which is an excellent value as it means it would take EAT, only 1.07 years of fcf income to pay off all of its debts.
EAT has a Debt to FCF ratio of 1.07. This is amongst the best in the industry. EAT outperforms 90.37% of its industry peers.
EAT has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
EAT has a Debt to Equity ratio (1.15) which is in line with 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 | 1.15 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 4.11 |
ROIC/WACC2.86
WACC8.59%
2.3 Liquidity
A Current Ratio of 0.31 indicates that EAT may have some problems paying its short term obligations.
EAT's Current ratio of 0.31 is on the low side compared to the rest of the industry. EAT is outperformed by 89.63% of its industry peers.
EAT has a Quick Ratio of 0.31. 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 0.25, EAT is doing worse than 88.89% of the companies in the same industry.
EAT does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
EAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 116.02%, which is quite impressive.
The Earnings Per Share has been growing by 37.36% on average over the past years. This is a very strong growth
Looking at the last year, EAT shows a very strong growth in Revenue. The Revenue has grown by 21.95%.
The Revenue has been growing by 11.83% on average over the past years. This is quite good.
EPS 1Y (TTM)116.02%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%54.66%
Revenue 1Y (TTM)21.95%
Revenue growth 3Y12.28%
Revenue growth 5Y11.83%
Sales Q2Q%21%
3.2 Future
EAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.39% yearly.
EAT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.49% yearly.
EPS Next Y17.27%
EPS Next 2Y15.48%
EPS Next 3Y13.39%
EPS Next 5YN/A
Revenue Next Year6.26%
Revenue Next 2Y5.71%
Revenue Next 3Y4.79%
Revenue Next 5Y-3.49%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.70, the valuation of EAT can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of EAT indicates a somewhat cheap valuation: EAT is cheaper than 77.78% of the companies listed in the same industry.
EAT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.49, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.53, EAT is valued correctly.
Based on the Price/Forward Earnings ratio, EAT is valued a bit cheaper than the industry average as 78.52% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.99. EAT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.7 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
76.30% of the companies in the same industry are more expensive than EAT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EAT indicates a rather cheap valuation: EAT is cheaper than 83.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.07 | ||
| EV/EBITDA | 8.28 |
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.
The excellent profitability rating of EAT may justify a higher PE ratio.
EAT's earnings are expected to grow with 13.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)0.39
EPS Next 2Y15.48%
EPS Next 3Y13.39%
5. Dividend
5.1 Amount
EAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
130.82
-1.19 (-0.9%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners109.97%
Inst Owner Change-0.31%
Ins Owners1.46%
Ins Owner Change-0.09%
Market Cap5.82B
Analysts72.5
Price Target182.08 (39.18%)
Short Float %12.83%
Short Ratio4.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.77%
Min EPS beat(2)0.67%
Max EPS beat(2)2.88%
EPS beat(4)4
Avg EPS beat(4)23.21%
Min EPS beat(4)0.67%
Max EPS beat(4)52.02%
EPS beat(8)7
Avg EPS beat(8)59.99%
EPS beat(12)11
Avg EPS beat(12)44.77%
EPS beat(16)12
Avg EPS beat(16)31.91%
Revenue beat(2)2
Avg Revenue beat(2)1.13%
Min Revenue beat(2)0.68%
Max Revenue beat(2)1.58%
Revenue beat(4)4
Avg Revenue beat(4)3.31%
Min Revenue beat(4)0.68%
Max Revenue beat(4)8.48%
Revenue beat(8)5
Avg Revenue beat(8)1.61%
Revenue beat(12)7
Avg Revenue beat(12)1.2%
Revenue beat(16)7
Avg Revenue beat(16)0.68%
PT rev (1m)1.06%
PT rev (3m)7.08%
EPS NQ rev (1m)0.61%
EPS NQ rev (3m)17.05%
EPS NY rev (1m)0.12%
EPS NY rev (3m)5.04%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)3.25%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.7 | ||
| Fwd PE | 12.53 | ||
| P/S | 1.08 | ||
| P/FCF | 14.07 | ||
| P/OCF | 8.57 | ||
| P/B | 15.7 | ||
| P/tB | 36.66 | ||
| EV/EBITDA | 8.28 |
EPS(TTM)8.9
EY6.8%
EPS(NY)10.44
Fwd EY7.98%
FCF(TTM)9.3
FCFY7.11%
OCF(TTM)15.26
OCFY11.66%
SpS120.99
BVpS8.33
TBVpS3.57
PEG (NY)0.85
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.3% | ||
| ROE | 103.29% | ||
| ROCE | 27.65% | ||
| ROIC | 24.53% | ||
| ROICexc | 24.77% | ||
| ROICexgc | 27.73% | ||
| OM | 10.29% | ||
| PM (TTM) | 7.12% | ||
| GM | 18.25% | ||
| FCFM | 7.68% |
ROA(3y)8.14%
ROA(5y)6.99%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.96%
ROIC(5y)13%
ROICexc(3y)15.19%
ROICexc(5y)13.19%
ROICexgc(3y)17.06%
ROICexgc(5y)14.88%
ROCE(3y)16.86%
ROCE(5y)14.66%
ROICexcg growth 3Y40.45%
ROICexcg growth 5Y35.43%
ROICexc growth 3Y40.94%
ROICexc growth 5Y35.71%
OM growth 3Y27.07%
OM growth 5Y23.55%
PM growth 3Y32.03%
PM growth 5Y55.11%
GM growth 3Y14.09%
GM growth 5Y4.9%
F-Score8
Asset Turnover2.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | 128.41% | ||
| Cap/Sales | 4.93% | ||
| Interest Coverage | 10.05 | ||
| Cash Conversion | 89.3% | ||
| Profit Quality | 107.99% | ||
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 4.11 |
F-Score8
WACC8.59%
ROIC/WACC2.86
Cap/Depr(3y)118.2%
Cap/Depr(5y)101.72%
Cap/Sales(3y)4.64%
Cap/Sales(5y)4.13%
Profit Quality(3y)107.06%
Profit Quality(5y)123.46%
High Growth Momentum
Growth
EPS 1Y (TTM)116.02%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%54.66%
EPS Next Y17.27%
EPS Next 2Y15.48%
EPS Next 3Y13.39%
EPS Next 5YN/A
Revenue 1Y (TTM)21.95%
Revenue growth 3Y12.28%
Revenue growth 5Y11.83%
Sales Q2Q%21%
Revenue Next Year6.26%
Revenue Next 2Y5.71%
Revenue Next 3Y4.79%
Revenue Next 5Y-3.49%
EBIT growth 1Y102.78%
EBIT growth 3Y42.67%
EBIT growth 5Y38.16%
EBIT Next Year54.62%
EBIT Next 3Y20.02%
EBIT Next 5YN/A
FCF growth 1Y85.52%
FCF growth 3Y59.53%
FCF growth 5Y24.11%
OCF growth 1Y60.94%
OCF growth 3Y39.12%
OCF growth 5Y22.61%