BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
USA - NYSE:EAT - US1096411004 - Common Stock
138.515 USD
-0.17 (-0.12%)
EAT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 134 industry peers in the Hotels, Restaurants & Leisure industry. EAT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. EAT scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
In the past year EAT had a positive cash flow from operations.
Each year in the past 5 years EAT has been profitable.
EAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 14.30%, EAT belongs to the best of the industry, outperforming 91.79% of the companies in the same industry.
EAT has a Return On Equity of 103.29%. This is amongst the best in the industry. EAT outperforms 97.01% of its industry peers.
EAT's Return On Invested Capital of 24.53% is amongst the best of the industry. EAT outperforms 94.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EAT is in line with the industry average of 15.67%.
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 has a better Profit Margin (7.12%) than 62.69% of its industry peers.
EAT's Profit Margin has improved in the last couple of years.
EAT's Operating Margin of 10.29% is in line compared to the rest of the industry. EAT outperforms 57.46% of its industry peers.
EAT's Operating Margin has improved in the last couple of years.
The Gross Margin of EAT (18.25%) is worse than 88.06% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EAT is creating value.
Compared to 1 year ago, EAT has less shares outstanding
EAT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EAT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.18 indicates that EAT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.18, EAT belongs to the best of the industry, outperforming 82.84% of the companies in the same industry.
EAT has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
The Debt to FCF ratio of EAT (1.07) is better than 89.55% of its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that EAT has dependencies on debt 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 | 4.18 |
ROIC/WACC2.68
WACC9.14%
2.3 Liquidity
EAT has a Current 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.
EAT's Current ratio of 0.31 is on the low side compared to the rest of the industry. EAT is outperformed by 90.30% of its industry peers.
A Quick Ratio of 0.25 indicates that EAT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.25, EAT is doing worse than 89.55% 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
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.
EAT shows a strong growth in Revenue. In the last year, 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 13.20% 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 Y17.13%
EPS Next 2Y15.33%
EPS Next 3Y13.2%
EPS Next 5YN/A
Revenue Next Year6.2%
Revenue Next 2Y5.64%
Revenue Next 3Y4.77%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.56, the valuation of EAT can be described as correct.
79.10% 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 (27.41), we can say EAT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.29, the valuation of EAT can be described as correct.
77.61% of the companies in the same industry are more expensive than EAT, based on the Price/Forward Earnings ratio.
EAT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 13.29 |
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 76.87% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EAT is valued cheaply inside the industry as 82.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.9 | ||
| EV/EBITDA | 8.67 |
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.
EAT's earnings are expected to grow with 13.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.91
PEG (5Y)0.42
EPS Next 2Y15.33%
EPS Next 3Y13.2%
5. Dividend
5.1 Amount
No dividends for EAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:EAT (9/24/2025, 12:09:41 PM)
138.515
-0.17 (-0.12%)
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 Change-0.09%
Market Cap6.16B
Analysts70.83
Price Target181.44 (30.99%)
Short Float %12.2%
Short Ratio4.09
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)3.64%
PT rev (3m)6.7%
EPS NQ rev (1m)3.85%
EPS NQ rev (3m)18.61%
EPS NY rev (1m)0%
EPS NY rev (3m)5.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 13.29 | ||
| P/S | 1.14 | ||
| P/FCF | 14.9 | ||
| P/OCF | 9.08 | ||
| P/B | 16.62 | ||
| P/tB | 38.82 | ||
| EV/EBITDA | 8.67 |
EPS(TTM)8.9
EY6.43%
EPS(NY)10.42
Fwd EY7.53%
FCF(TTM)9.3
FCFY6.71%
OCF(TTM)15.26
OCFY11.02%
SpS120.99
BVpS8.33
TBVpS3.57
PEG (NY)0.91
PEG (5Y)0.42
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 | 4.18 |
F-Score8
WACC9.14%
ROIC/WACC2.68
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 Y17.13%
EPS Next 2Y15.33%
EPS Next 3Y13.2%
EPS Next 5YN/A
Revenue 1Y (TTM)21.95%
Revenue growth 3Y12.28%
Revenue growth 5Y11.83%
Sales Q2Q%21%
Revenue Next Year6.2%
Revenue Next 2Y5.64%
Revenue Next 3Y4.77%
Revenue Next 5Y-3.49%
EBIT growth 1Y102.78%
EBIT growth 3Y42.67%
EBIT growth 5Y38.16%
EBIT Next Year49.41%
EBIT Next 3Y19.84%
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%