BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EAT - US1096411004 - Common Stock
149.61 USD
-1.35 (-0.89%)
149.61 USD
0 (0%)
Taking everything into account, EAT scores 5 out of 10 in our fundamental rating. EAT was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. EAT has an average financial health and profitability rating. EAT may be a bit undervalued, certainly considering the very reasonable score on growth This makes EAT very considerable 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.
EAT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years EAT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.97%, EAT belongs to the top of the industry, outperforming 87.97% of the companies in the same industry.
EAT has a better Return On Equity (94.42%) than 93.98% of its industry peers.
With an excellent Return On Invested Capital value of 16.64%, EAT belongs to the best of the industry, outperforming 84.96% of the companies in the same industry.
EAT had an Average Return On Invested Capital over the past 3 years of 2.53%. This is significantly below the industry average of 10.39%.
The last Return On Invested Capital (16.64%) for EAT is above the 3 year average (2.53%), which is a sign of increasing profitability.
| 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 67.67% of the companies in the same industry.
In the last couple of years the Profit Margin of EAT has declined.
With a Operating Margin value of 10.56%, EAT perfoms like the industry average, outperforming 59.40% of the companies in the same industry.
In the last couple of years the Operating Margin of EAT has declined.
EAT's Gross Margin of 18.50% is on the low side compared to the rest of the industry. EAT is outperformed by 87.97% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EAT is creating value.
Compared to 1 year ago, EAT has more shares outstanding
EAT has less shares outstanding than it did 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.
Looking at the Altman-Z score, with a value of 3.73, EAT belongs to the top of the industry, outperforming 81.95% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.16, EAT belongs to the top of the industry, outperforming 90.23% of the companies in the same industry.
EAT has a Debt/Equity ratio of 1.53. This is a high value indicating a heavy dependency on external financing.
EAT has a Debt to Equity ratio (1.53) which is comparable to the rest of the industry.
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 | 1.53 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 3.73 |
ROIC/WACC1.9
WACC8.78%
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 has a Current ratio of 0.35. This is amonst the worse of the industry: EAT underperforms 86.47% of its industry peers.
A Quick Ratio of 0.29 indicates that EAT may have some problems paying its short term obligations.
With a Quick ratio value of 0.29, EAT is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| 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.
Measured over the past years, EAT shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.36% on average per year.
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
EAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.99% yearly.
Based on estimates for the next years, EAT will show a decrease in Revenue. The Revenue will decrease by -3.49% on average per year.
EPS Next Y17.87%
EPS Next 2Y16.53%
EPS Next 3Y13.99%
EPS Next 5YN/A
Revenue Next Year7.27%
Revenue Next 2Y6.26%
Revenue Next 3Y5.26%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.14, EAT is valued correctly.
Based on the Price/Earnings ratio, EAT is valued a bit cheaper than 79.70% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.92. EAT is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.38, EAT is valued correctly.
83.46% of the companies in the same industry are more expensive than EAT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.46. EAT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.14 | ||
| Fwd PE | 12.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EAT is valued a bit cheaper than the industry average as 64.66% of the companies are valued more expensively.
86.47% 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 | 14.04 | ||
| EV/EBITDA | 10.23 |
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 13.99% in the coming years.
PEG (NY)0.85
PEG (5Y)0.41
EPS Next 2Y16.53%
EPS Next 3Y13.99%
5. Dividend
5.1 Amount
No dividends for EAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
149.61
-1.35 (-0.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners112.26%
Inst Owner Change2.45%
Ins Owners1.34%
Ins Owner Change2.13%
Market Cap6.65B
Revenue(TTM)4.18B
Net Income(TTM)324.72M
Analysts77.69
Price Target166.22 (11.1%)
Short Float %12.96%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2.89%
PT rev (3m)-8.39%
EPS NQ rev (1m)1%
EPS NQ rev (3m)-5.96%
EPS NY rev (1m)1.05%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.14 | ||
| Fwd PE | 12.38 | ||
| P/S | 1.59 | ||
| P/FCF | 14.04 | ||
| P/OCF | 8.34 | ||
| P/B | 19.33 | ||
| P/tB | 50.21 | ||
| EV/EBITDA | 10.23 |
EPS(TTM)9.88
EY6.6%
EPS(NY)12.09
Fwd EY8.08%
FCF(TTM)10.66
FCFY7.12%
OCF(TTM)17.94
OCFY11.99%
SpS94.11
BVpS7.74
TBVpS2.98
PEG (NY)0.85
PEG (5Y)0.41
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
WACC8.78%
ROIC/WACC1.9
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 Y17.87%
EPS Next 2Y16.53%
EPS Next 3Y13.99%
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 Year7.27%
Revenue Next 2Y6.26%
Revenue Next 3Y5.26%
Revenue Next 5Y-3.49%
EBIT growth 1Y170.46%
EBIT growth 3Y-85.85%
EBIT growth 5Y-65.47%
EBIT Next Year53.72%
EBIT Next 3Y20.04%
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%.