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. EAT has only an average score on both its financial health and profitability. EAT is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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 4 of the past 5 years.
In the past 5 years EAT always reported a positive cash flow from operatings.

1.2 Ratios

EAT has a Return On Assets of 11.97%. This is amongst the best in the industry. EAT outperforms 87.88% of its industry peers.
EAT has a better Return On Equity (94.42%) than 94.70% of its industry peers.
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 10.37%.
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

EAT has a Profit Margin of 7.77%. This is in the better half of the industry: EAT outperforms 67.42% of its industry peers.
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.
In the last couple of years the Operating Margin of EAT has declined.
Looking at the Gross Margin, with a value of 18.50%, EAT is doing worse than 87.12% of the companies in the same industry.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 1 year ago, EAT has more shares outstanding
EAT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EAT has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 3.86 indicates that EAT is not in any danger for bankruptcy at the moment.
EAT has a better Altman-Z score (3.86) than 84.85% 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.
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	3.86

ROIC/WACC1.87

WACC8.9%

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.
Looking at the Current ratio, with a value of 0.35, EAT is doing worse than 85.61% of the companies in the same industry.
A Quick Ratio of 0.29 indicates that EAT may have some problems paying its short term obligations.
EAT's Quick ratio of 0.29 is on the low side compared to the rest of the industry. EAT is outperformed by 84.09% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.35
Quick Ratio	0.29

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 50.76% 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.
The Revenue has been growing slightly by 5.96% in the past year.
The Revenue for EAT have been decreasing by -63.21% on average. This is quite bad

EPS 1Y (TTM)50.76%

EPS 3Y41.82%

EPS 5Y37.36%

EPS Q2Q%2.5%

Revenue 1Y (TTM)5.96%

Revenue growth 3Y-82.4%

Revenue growth 5Y-63.21%

Sales Q2Q%6.92%

3.2 Future

The Earnings Per Share is expected to grow by 14.31% on average over the next years. This is quite good.
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 Y18.15%

EPS Next 2Y16.56%

EPS Next 3Y14.31%

EPS Next 5YN/A

Revenue Next Year7.4%

Revenue Next 2Y6.42%

Revenue Next 3Y5.41%

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 16.14, EAT is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of EAT indicates a somewhat cheap valuation: EAT is cheaper than 77.27% of the companies listed in the same industry.
EAT is valuated rather cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.29, EAT is valued correctly.
81.06% of the companies in the same industry are more expensive than EAT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of EAT to the average of the S&P500 Index (25.72), we can say EAT is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	16.14
Fwd PE	13.29

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as EAT.
82.58% 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	15.07
EV/EBITDA	10.93

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.
EAT's earnings are expected to grow with 14.31% in the coming years. This may justify a more expensive valuation.