BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EAT - US1096411004 - Common Stock
149.03 USD
-2.34 (-1.55%)
149.23 USD
+0.2 (+0.13%)
EAT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on EAT. These ratings would make EAT suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year EAT was profitable.
In the past year EAT had a positive cash flow from operations.
Of the past 5 years EAT 4 years were profitable.
Each year in the past 5 years EAT had a positive operating cash flow.
1.2 Ratios
EAT's Return On Assets of 11.97% is amongst the best of the industry. EAT outperforms 87.12% of its industry peers.
With an excellent Return On Equity value of 94.42%, EAT belongs to the best of the industry, outperforming 94.70% of the companies in the same industry.
EAT's Return On Invested Capital of 16.64% is amongst the best of the industry. EAT outperforms 84.85% of its industry peers.
EAT had an Average Return On Invested Capital over the past 3 years of 2.53%. This is significantly below the industry average of 10.42%.
The 3 year average ROIC (2.53%) for EAT is below the current ROIC(16.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 94.42% | ||
| ROIC | 16.64% |
ROA(3y)-1.3%
ROA(5y)1.33%
ROE(3y)-2.54%
ROE(5y)N/A
ROIC(3y)2.53%
ROIC(5y)5.11%
1.3 Margins
Looking at the Profit Margin, with a value of 7.77%, EAT is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
In the last couple of years the Profit Margin of EAT has declined.
EAT has a Operating Margin of 10.56%. This is comparable to the rest of the industry: EAT outperforms 59.09% of its industry peers.
EAT's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 18.50%, EAT is not doing good in the industry: 87.88% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of EAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.56% | ||
| PM (TTM) | 7.77% | ||
| GM | 18.5% |
OM growth 3Y-19.63%
OM growth 5Y-6.14%
PM growth 3Y-69.61%
PM growth 5Y-35.75%
GM growth 3Y25.02%
GM growth 5Y10.82%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EAT is creating value.
EAT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for EAT has been reduced compared to 5 years ago.
EAT has a worse debt/assets ratio than last year.
2.2 Solvency
EAT has an Altman-Z score of 3.73. This indicates that EAT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EAT (3.73) is better than 83.33% of its industry peers.
The Debt to FCF ratio of EAT is 1.16, which is an excellent value as it means it would take EAT, only 1.16 years of fcf income to pay off all of its debts.
EAT has a better Debt to FCF ratio (1.16) than 90.15% of its industry peers.
EAT has a Debt/Equity ratio of 1.53. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.53, EAT is in line with its industry, outperforming 56.82% 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 | 1.53 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 3.73 |
ROIC/WACC1.91
WACC8.73%
2.3 Liquidity
EAT has a Current 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's Current ratio of 0.35 is on the low side compared to the rest of the industry. EAT is outperformed by 87.12% of its industry peers.
A Quick Ratio of 0.29 indicates that EAT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.29, EAT is doing worse than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
EAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 106.26%, which is quite impressive.
EAT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.36% yearly.
The Revenue has grown by 81.56% in the past year. This is a very strong growth!
The Revenue for EAT have been decreasing by -63.21% on average. This is quite bad
EPS 1Y (TTM)106.26%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%103.16%
Revenue 1Y (TTM)81.56%
Revenue growth 3Y-82.4%
Revenue growth 5Y-63.21%
Sales Q2Q%18.45%
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 13.52% on average per year.
The Revenue is expected to decrease by -3.49% on average over the next years.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
EAT is valuated correctly with a Price/Earnings ratio of 15.08.
78.03% of the companies in the same industry are more expensive than EAT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of EAT to the average of the S&P500 Index (26.15), we can say EAT is valued slightly cheaper.
EAT is valuated correctly with a Price/Forward Earnings ratio of 12.45.
EAT's Price/Forward Earnings ratio is rather cheap when compared to the industry. EAT is cheaper than 80.30% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EAT to the average of the S&P500 Index (36.22), we can say EAT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 12.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EAT indicates a somewhat cheap valuation: EAT is cheaper than 62.12% of the companies listed in the same industry.
EAT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EAT is cheaper than 84.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.98 | ||
| EV/EBITDA | 10.2 |
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.
The decent profitability rating of EAT 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)0.91
PEG (5Y)0.4
EPS Next 2Y15.96%
EPS Next 3Y13.52%
5. Dividend
5.1 Amount
EAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
149.03
-2.34 (-1.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners109.97%
Inst Owner Change2.47%
Ins Owners1.46%
Ins Owner Change0.49%
Market Cap6.62B
Revenue(TTM)4.18B
Net Income(TTM)324.72M
Analysts76
Price Target161.55 (8.4%)
Short Float %13.32%
Short Ratio3.49
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)-6.13%
PT rev (3m)-10.33%
EPS NQ rev (1m)-5.85%
EPS NQ rev (3m)-7.16%
EPS NY rev (1m)-1.02%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 12.45 | ||
| P/S | 1.58 | ||
| P/FCF | 13.98 | ||
| P/OCF | 8.31 | ||
| P/B | 19.25 | ||
| P/tB | 50.01 | ||
| EV/EBITDA | 10.2 |
EPS(TTM)9.88
EY6.63%
EPS(NY)11.97
Fwd EY8.03%
FCF(TTM)10.66
FCFY7.15%
OCF(TTM)17.94
OCFY12.04%
SpS94.11
BVpS7.74
TBVpS2.98
PEG (NY)0.91
PEG (5Y)0.4
Graham Number41.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 94.42% | ||
| ROCE | 21.06% | ||
| ROIC | 16.64% | ||
| ROICexc | 16.91% | ||
| ROICexgc | 18.84% | ||
| OM | 10.56% | ||
| PM (TTM) | 7.77% | ||
| GM | 18.5% | ||
| FCFM | 11.32% |
ROA(3y)-1.3%
ROA(5y)1.33%
ROE(3y)-2.54%
ROE(5y)N/A
ROIC(3y)2.53%
ROIC(5y)5.11%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)3.21%
ROCE(5y)6.47%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-19.63%
OM growth 5Y-6.14%
PM growth 3Y-69.61%
PM growth 5Y-35.75%
GM growth 3Y25.02%
GM growth 5Y10.82%
F-Score5
Asset Turnover1.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 125.18% | ||
| Cap/Sales | 7.74% | ||
| Interest Coverage | 6.14 | ||
| Cash Conversion | 113.87% | ||
| Profit Quality | 145.82% | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 3.73 |
F-Score5
WACC8.73%
ROIC/WACC1.91
Cap/Depr(3y)14.03%
Cap/Depr(5y)39.22%
Cap/Sales(3y)1.14%
Cap/Sales(5y)2.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
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)81.56%
Revenue growth 3Y-82.4%
Revenue growth 5Y-63.21%
Sales Q2Q%18.45%
Revenue Next Year7.01%
Revenue Next 2Y6.05%
Revenue Next 3Y4.97%
Revenue Next 5Y-3.49%
EBIT growth 1Y170.46%
EBIT growth 3Y-85.85%
EBIT growth 5Y-65.47%
EBIT Next Year54.62%
EBIT Next 3Y19.33%
EBIT Next 5YN/A
FCF growth 1Y347.99%
FCF growth 3Y-71.42%
FCF growth 5Y-55.77%
OCF growth 1Y174.08%
OCF growth 3Y-77.72%
OCF growth 5Y-59.15%
BRINKER INTERNATIONAL INC / EAT FAQ
What is the fundamental rating for EAT stock?
ChartMill assigns a fundamental rating of 5 / 10 to EAT.
What is the valuation status for EAT stock?
ChartMill assigns a valuation rating of 7 / 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 6 / 10.
How financially healthy is BRINKER INTERNATIONAL INC?
The financial health rating of BRINKER INTERNATIONAL INC (EAT) is 5 / 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%.