BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
USA - NYSE:EAT - US1096411004 - Common Stock
102.64 USD
+0.35 (+0.34%)
102.64 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to EAT. EAT was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. EAT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on EAT. With these ratings, EAT could be worth investigating further for value and quality investing!.
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 (16.38%) than 93.18% of its industry peers.
EAT has a better Return On Equity (129.14%) than 96.97% of its industry peers.
EAT has a Return On Invested Capital of 25.71%. This is amongst the best in the industry. EAT outperforms 94.70% of its industry peers.
EAT had an Average Return On Invested Capital over the past 3 years of 14.96%. This is above the industry average of 10.89%.
The last Return On Invested Capital (25.71%) for EAT is above the 3 year average (14.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.38% | ||
| ROE | 129.14% | ||
| ROIC | 25.71% |
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 has a Profit Margin of 7.94%. This is in the better half of the industry: EAT outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of EAT has grown nicely.
EAT's Operating Margin of 10.86% is in line compared to the rest of the industry. EAT outperforms 59.85% of its industry peers.
EAT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 18.74%, EAT is not doing good in the industry: 87.88% of the companies in the same industry are doing better.
EAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.86% | ||
| PM (TTM) | 7.94% | ||
| GM | 18.74% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EAT is creating value.
The number of shares outstanding for EAT has been reduced compared to 1 year ago.
EAT has less shares outstanding than it did 5 years ago.
EAT has a better debt/assets ratio than last year.
2.2 Solvency
EAT has an Altman-Z score of 3.93. This indicates that EAT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EAT (3.93) is better than 85.61% of its industry peers.
EAT has a debt to FCF ratio of 1.17. This is a very positive value and a sign of high solvency as it would only need 1.17 years to pay back of all of its debts.
EAT's Debt to FCF ratio of 1.17 is amongst the best of the industry. EAT outperforms 90.15% of its industry peers.
A Debt/Equity ratio of 1.53 is on the high side and indicates that EAT has dependencies on debt financing.
EAT has a Debt to Equity ratio (1.53) which is comparable to the rest of the 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 | 1.53 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | 3.93 |
ROIC/WACC2.98
WACC8.64%
2.3 Liquidity
A Current Ratio of 0.35 indicates that EAT may have some problems paying its short term obligations.
With a Current ratio value of 0.35, EAT is not doing good in the industry: 85.61% of the companies in the same industry are doing better.
EAT has a Quick Ratio of 0.35. This is a bad value and indicates that EAT is not financially healthy enough and could expect problems in meeting its short term obligations.
EAT has a Quick ratio of 0.29. This is amonst the worse of the industry: EAT underperforms 85.61% of its industry peers.
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 | 0.35 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 106.26% over the past year.
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 23.18%.
Measured over the past years, EAT shows a quite strong growth in Revenue. The Revenue has been growing by 11.83% on average per year.
EPS 1Y (TTM)106.26%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%103.16%
Revenue 1Y (TTM)23.18%
Revenue growth 3Y12.28%
Revenue growth 5Y11.83%
Sales Q2Q%18.45%
3.2 Future
The Earnings Per Share is expected to grow by 13.52% on average over the next years. This is quite good.
EAT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.49% yearly.
EPS Next Y16.65%
EPS Next 2Y15.96%
EPS Next 3Y13.52%
EPS Next 5YN/A
Revenue Next Year7.01%
Revenue Next 2Y6.05%
Revenue Next 3Y4.97%
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.
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 10.39, the valuation of EAT can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of EAT indicates a rather cheap valuation: EAT is cheaper than 89.39% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of EAT to the average of the S&P500 Index (26.06), we can say EAT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.58, the valuation of EAT can be described as reasonable.
Based on the Price/Forward Earnings ratio, EAT is valued cheaply inside the industry as 90.15% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.73, EAT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.39 | ||
| Fwd PE | 8.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EAT is valued cheaply inside the industry as 87.88% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EAT indicates a rather cheap valuation: EAT is cheaper than 90.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.71 | ||
| EV/EBITDA | 6.18 |
4.3 Compensation for Growth
EAT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EAT has an outstanding 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 13.52% in the coming years.
PEG (NY)0.62
PEG (5Y)0.28
EPS Next 2Y15.96%
EPS Next 3Y13.52%
5. Dividend
5.1 Amount
No dividends for EAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
102.64
+0.35 (+0.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners109.97%
Inst Owner Change-2.03%
Ins Owners1.46%
Ins Owner Change-0.11%
Market Cap4.56B
Revenue(TTM)5.59B
Net Income(TTM)444.10M
Analysts76
Price Target172.09 (67.66%)
Short Float %13.41%
Short Ratio4.61
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)4.22%
Min EPS beat(2)0.67%
Max EPS beat(2)7.76%
EPS beat(4)4
Avg EPS beat(4)15.83%
Min EPS beat(4)0.67%
Max EPS beat(4)52.02%
EPS beat(8)7
Avg EPS beat(8)13%
EPS beat(12)11
Avg EPS beat(12)44.85%
EPS beat(16)13
Avg EPS beat(16)35.58%
Revenue beat(2)2
Avg Revenue beat(2)0.5%
Min Revenue beat(2)0.31%
Max Revenue beat(2)0.68%
Revenue beat(4)4
Avg Revenue beat(4)2.76%
Min Revenue beat(4)0.31%
Max Revenue beat(4)8.48%
Revenue beat(8)6
Avg Revenue beat(8)1.74%
Revenue beat(12)7
Avg Revenue beat(12)1.11%
Revenue beat(16)8
Avg Revenue beat(16)0.76%
PT rev (1m)-5.48%
PT rev (3m)-1.7%
EPS NQ rev (1m)-6.46%
EPS NQ rev (3m)-6.56%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)4.48%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.39 | ||
| Fwd PE | 8.58 | ||
| P/S | 0.82 | ||
| P/FCF | 9.71 | ||
| P/OCF | 6.19 | ||
| P/B | 13.26 | ||
| P/tB | 34.44 | ||
| EV/EBITDA | 6.18 |
EPS(TTM)9.88
EY9.63%
EPS(NY)11.97
Fwd EY11.66%
FCF(TTM)10.57
FCFY10.3%
OCF(TTM)16.59
OCFY16.16%
SpS125.91
BVpS7.74
TBVpS2.98
PEG (NY)0.62
PEG (5Y)0.28
Graham Number41.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.38% | ||
| ROE | 129.14% | ||
| ROCE | 28.97% | ||
| ROIC | 25.71% | ||
| ROICexc | 26.13% | ||
| ROICexgc | 29.11% | ||
| OM | 10.86% | ||
| PM (TTM) | 7.94% | ||
| GM | 18.74% | ||
| FCFM | 8.39% |
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%
ROICexgc growth 3Y40.45%
ROICexgc 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-Score9
Asset Turnover2.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 1.17 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 125.01% | ||
| Cap/Sales | 4.78% | ||
| Interest Coverage | 10.9 | ||
| Cash Conversion | 89.75% | ||
| Profit Quality | 105.74% | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 3.93 |
F-Score9
WACC8.64%
ROIC/WACC2.98
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)106.26%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%103.16%
EPS Next Y16.65%
EPS Next 2Y15.96%
EPS Next 3Y13.52%
EPS Next 5YN/A
Revenue 1Y (TTM)23.18%
Revenue growth 3Y12.28%
Revenue growth 5Y11.83%
Sales Q2Q%18.45%
Revenue Next Year7.01%
Revenue Next 2Y6.05%
Revenue Next 3Y4.97%
Revenue Next 5Y-3.49%
EBIT growth 1Y97.24%
EBIT growth 3Y42.67%
EBIT growth 5Y38.16%
EBIT Next Year54.62%
EBIT Next 3Y19.33%
EBIT Next 5YN/A
FCF growth 1Y344.28%
FCF growth 3Y59.53%
FCF growth 5Y24.11%
OCF growth 1Y153.44%
OCF growth 3Y39.12%
OCF growth 5Y22.61%
BRINKER INTERNATIONAL INC / EAT FAQ
What is the fundamental rating for EAT stock?
ChartMill assigns a fundamental rating of 7 / 10 to EAT.
What is the valuation status for EAT stock?
ChartMill assigns a valuation rating of 9 / 10 to BRINKER INTERNATIONAL INC (EAT). This can be considered as Undervalued.
Can you provide the profitability details for BRINKER INTERNATIONAL INC?
BRINKER INTERNATIONAL INC (EAT) has a profitability rating of 8 / 10.
How financially healthy is BRINKER INTERNATIONAL INC?
The financial health rating of BRINKER INTERNATIONAL INC (EAT) is 7 / 10.
Can you provide the dividend sustainability for EAT stock?
The dividend rating of BRINKER INTERNATIONAL INC (EAT) is 0 / 10 and the dividend payout ratio is 0%.