BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EAT - US1096411004 - Common Stock
140.45 USD
-1.79 (-1.26%)
140.45 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to EAT. EAT was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. EAT has only an average score on both its financial health and profitability. 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 investing!.
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.
EAT had a positive operating cash flow in each of the past 5 years.
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.
Looking at the Return On Equity, with a value of 94.42%, EAT belongs to the top of the industry, outperforming 94.70% of the companies in the same industry.
EAT has a better Return On Invested Capital (16.64%) than 84.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EAT is significantly below the industry average of 10.42%.
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
The Profit Margin of EAT (7.77%) is better than 65.91% of its industry peers.
In the last couple of years the Profit Margin of EAT has declined.
EAT's Operating Margin of 10.56% is in line compared 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.
EAT's Gross Margin of 18.50% is on the low side compared to the rest of the industry. EAT is outperformed by 88.64% 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
EAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
EAT has more shares outstanding than it did 1 year ago.
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 3.63 indicates that EAT is not in any danger for bankruptcy at the moment.
The Altman-Z score of EAT (3.63) is better than 81.06% 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.
The Debt to FCF ratio of EAT (1.16) is better 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.
With a Debt to Equity ratio value of 1.53, EAT perfoms like the industry average, outperforming 56.06% 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 | 3.63 |
ROIC/WACC1.9
WACC8.78%
2.3 Liquidity
A Current Ratio of 0.35 indicates that EAT may have some problems paying 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 87.88% of its industry peers.
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 worse Quick ratio (0.29) than 87.12% of its industry peers.
| 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 81.56%.
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
The Earnings Per Share is expected to grow by 13.98% on average over the next years. This is quite good.
The Revenue is expected to decrease by -3.49% on average over the next years.
EPS Next Y17.53%
EPS Next 2Y16.29%
EPS Next 3Y13.98%
EPS Next 5YN/A
Revenue Next Year7.14%
Revenue Next 2Y6.15%
Revenue Next 3Y5.23%
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
Based on the Price/Earnings ratio of 14.22, the valuation of EAT can be described as correct.
Based on the Price/Earnings ratio, EAT is valued a bit cheaper than 78.79% of the companies in the same industry.
EAT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.67 indicates a reasonable valuation of EAT.
Based on the Price/Forward Earnings ratio, EAT is valued cheaper than 81.82% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, EAT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 11.67 |
4.2 Price Multiples
EAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EAT is cheaper than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EAT is valued cheaper than 84.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.18 | ||
| EV/EBITDA | 9.65 |
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 13.98% in the coming years.
PEG (NY)0.81
PEG (5Y)0.38
EPS Next 2Y16.29%
EPS Next 3Y13.98%
5. Dividend
5.1 Amount
EAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
140.45
-1.79 (-1.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners112.26%
Inst Owner Change2.47%
Ins Owners1.34%
Ins Owner Change0.49%
Market Cap6.24B
Revenue(TTM)4.18B
Net Income(TTM)324.72M
Analysts77.69
Price Target163.27 (16.25%)
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)-5.13%
PT rev (3m)-9.38%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-6.58%
EPS NY rev (1m)0.76%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 11.67 | ||
| P/S | 1.49 | ||
| P/FCF | 13.18 | ||
| P/OCF | 7.83 | ||
| P/B | 18.15 | ||
| P/tB | 47.13 | ||
| EV/EBITDA | 9.65 |
EPS(TTM)9.88
EY7.03%
EPS(NY)12.04
Fwd EY8.57%
FCF(TTM)10.66
FCFY7.59%
OCF(TTM)17.94
OCFY12.77%
SpS94.11
BVpS7.74
TBVpS2.98
PEG (NY)0.81
PEG (5Y)0.38
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 | 3.63 |
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 Y17.53%
EPS Next 2Y16.29%
EPS Next 3Y13.98%
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 Year7.14%
Revenue Next 2Y6.15%
Revenue Next 3Y5.23%
Revenue Next 5Y-3.49%
EBIT growth 1Y170.46%
EBIT growth 3Y-85.85%
EBIT growth 5Y-65.47%
EBIT Next Year53.3%
EBIT Next 3Y19.83%
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%.