BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
NYSE:EAT - New York Stock Exchange, Inc. - US1096411004 - Common Stock - Currency: USD
EAT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 131 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. 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
EAT had positive earnings in the past year.
EAT had a positive operating cash flow in the past year.
EAT had positive earnings in each of the past 5 years.
Each year in the past 5 years EAT had a positive operating cash flow.
1.2 Ratios
EAT's Return On Assets of 12.95% is amongst the best of the industry. EAT outperforms 89.31% of its industry peers.
EAT's Return On Equity of 128.61% is amongst the best of the industry. EAT outperforms 99.24% of its industry peers.
The Return On Invested Capital of EAT (20.59%) is better than 93.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EAT is significantly below the industry average of 15.81%.
The last Return On Invested Capital (20.59%) for EAT is above the 3 year average (8.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.95% | ||
| ROE | 128.61% | ||
| ROIC | 20.59% |
ROA(3y)4.95%
ROA(5y)4.33%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.64%
ROIC(5y)8.15%
1.3 Margins
EAT has a Profit Margin (6.49%) which is in line with its industry peers.
EAT's Profit Margin has declined in the last couple of years.
EAT has a Operating Margin (9.67%) which is in line with its industry peers.
EAT's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 17.64%, EAT is not doing good in the industry: 88.55% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of EAT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.67% | ||
| PM (TTM) | 6.49% | ||
| GM | 17.64% |
OM growth 3Y-1.88%
OM growth 5Y-4.74%
PM growth 3Y-3.73%
PM growth 5Y-6.08%
GM growth 3Y2.6%
GM growth 5Y-6.44%
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
Compared to 5 years ago, EAT has more shares outstanding
Compared to 1 year ago, EAT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.20 indicates that EAT is not in any danger for bankruptcy at the moment.
EAT has a Altman-Z score of 4.20. This is amongst the best in the industry. EAT outperforms 83.21% of its industry peers.
The Debt to FCF ratio of EAT is 1.38, which is an excellent value as it means it would take EAT, only 1.38 years of fcf income to pay off all of its debts.
EAT's Debt to FCF ratio of 1.38 is amongst the best of the industry. EAT outperforms 88.55% of its industry peers.
A Debt/Equity ratio of 2.00 is on the high side and indicates that EAT has dependencies on debt financing.
EAT has a Debt to Equity ratio of 2.00. This is comparable to the rest of the industry: EAT outperforms 52.67% of 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 | 2 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 4.2 |
ROIC/WACC2.25
WACC9.14%
2.3 Liquidity
A Current Ratio of 0.28 indicates that EAT may have some problems paying its short term obligations.
EAT has a Current ratio of 0.28. This is amonst the worse of the industry: EAT underperforms 90.08% of its industry peers.
EAT has a Quick Ratio of 0.28. This is a bad value and indicates that EAT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.23, EAT is not doing good in the industry: 91.60% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 105.64% over the past year.
EAT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.69% yearly.
Looking at the last year, EAT shows a quite strong growth in Revenue. The Revenue has grown by 19.80% in the last year.
Measured over the past years, EAT shows a small growth in Revenue. The Revenue has been growing by 6.53% on average per year.
EPS 1Y (TTM)105.64%
EPS 3Y10.06%
EPS 5Y0.69%
EPS Q2Q%114.52%
Revenue 1Y (TTM)19.8%
Revenue growth 3Y9.77%
Revenue growth 5Y6.53%
Sales Q2Q%27.21%
3.2 Future
EAT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.19% yearly.
The Revenue is expected to grow by 0.34% on average over the next years.
EPS Next Y115.09%
EPS Next 2Y55.3%
EPS Next 3Y39.19%
EPS Next 5YN/A
Revenue Next Year22.66%
Revenue Next 2Y13.57%
Revenue Next 3Y10.7%
Revenue Next 5Y0.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
With a Price/Earnings ratio of 18.95, EAT is valued on the expensive side.
EAT's Price/Earnings ratio is a bit cheaper when compared to the industry. EAT is cheaper than 69.47% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.48, EAT is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.29, EAT is valued correctly.
EAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EAT is cheaper than 70.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EAT to the average of the S&P500 Index (34.04), we can say EAT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 15.29 |
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 63.36% of the companies listed in the same industry.
EAT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EAT is cheaper than 78.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.25 | ||
| EV/EBITDA | 10.55 |
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 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 39.19% in the coming years.
PEG (NY)0.16
PEG (5Y)27.31
EPS Next 2Y55.3%
EPS Next 3Y39.19%
5. Dividend
5.1 Amount
EAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
151.97
-7.51 (-4.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners105.34%
Inst Owner Change0.5%
Ins Owners1.42%
Ins Owner Change-2.45%
Market Cap6.76B
Analysts70.83
Price Target175.07 (15.2%)
Short Float %12.11%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-68.87%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.45%
Min EPS beat(2)2.88%
Max EPS beat(2)52.02%
EPS beat(4)3
Avg EPS beat(4)21.22%
Min EPS beat(4)-7.3%
Max EPS beat(4)52.02%
EPS beat(8)7
Avg EPS beat(8)60.45%
EPS beat(12)10
Avg EPS beat(12)44.59%
EPS beat(16)11
Avg EPS beat(16)31.69%
Revenue beat(2)2
Avg Revenue beat(2)5.03%
Min Revenue beat(2)1.58%
Max Revenue beat(2)8.48%
Revenue beat(4)4
Avg Revenue beat(4)3.85%
Min Revenue beat(4)1.58%
Max Revenue beat(4)8.48%
Revenue beat(8)4
Avg Revenue beat(8)1.34%
Revenue beat(12)6
Avg Revenue beat(12)1.11%
Revenue beat(16)6
Avg Revenue beat(16)0.6%
PT rev (1m)2.95%
PT rev (3m)4.08%
EPS NQ rev (1m)1.55%
EPS NQ rev (3m)7.4%
EPS NY rev (1m)0%
EPS NY rev (3m)4.85%
Revenue NQ rev (1m)0.91%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 15.29 | ||
| P/S | 1.32 | ||
| P/FCF | 17.25 | ||
| P/OCF | 10.64 | ||
| P/B | 26.08 | ||
| P/tB | 145.58 | ||
| EV/EBITDA | 10.55 |
EPS(TTM)8.02
EY5.28%
EPS(NY)9.94
Fwd EY6.54%
FCF(TTM)8.81
FCFY5.8%
OCF(TTM)14.29
OCFY9.4%
SpS115.42
BVpS5.83
TBVpS1.04
PEG (NY)0.16
PEG (5Y)27.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.95% | ||
| ROE | 128.61% | ||
| ROCE | 26.06% | ||
| ROIC | 20.59% | ||
| ROICexc | 20.78% | ||
| ROICexgc | 23.42% | ||
| OM | 9.67% | ||
| PM (TTM) | 6.49% | ||
| GM | 17.64% | ||
| FCFM | 7.63% |
ROA(3y)4.95%
ROA(5y)4.33%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.64%
ROIC(5y)8.15%
ROICexc(3y)8.8%
ROICexc(5y)8.29%
ROICexgc(3y)9.93%
ROICexgc(5y)9.39%
ROCE(3y)10.94%
ROCE(5y)10.31%
ROICexcg growth 3Y2.79%
ROICexcg growth 5Y-16.57%
ROICexc growth 3Y3.26%
ROICexc growth 5Y-14.21%
OM growth 3Y-1.88%
OM growth 5Y-4.74%
PM growth 3Y-3.73%
PM growth 5Y-6.08%
GM growth 3Y2.6%
GM growth 5Y-6.44%
F-Score8
Asset Turnover1.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 1.38 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 125.66% | ||
| Cap/Sales | 4.74% | ||
| Interest Coverage | 7.92 | ||
| Cash Conversion | 92.03% | ||
| Profit Quality | 117.56% | ||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 4.2 |
F-Score8
WACC9.14%
ROIC/WACC2.25
Cap/Depr(3y)105.87%
Cap/Depr(5y)88.92%
Cap/Sales(3y)4.31%
Cap/Sales(5y)3.83%
Profit Quality(3y)99.94%
Profit Quality(5y)217.03%
High Growth Momentum
Growth
EPS 1Y (TTM)105.64%
EPS 3Y10.06%
EPS 5Y0.69%
EPS Q2Q%114.52%
EPS Next Y115.09%
EPS Next 2Y55.3%
EPS Next 3Y39.19%
EPS Next 5YN/A
Revenue 1Y (TTM)19.8%
Revenue growth 3Y9.77%
Revenue growth 5Y6.53%
Sales Q2Q%27.21%
Revenue Next Year22.66%
Revenue Next 2Y13.57%
Revenue Next 3Y10.7%
Revenue Next 5Y0.34%
EBIT growth 1Y99.88%
EBIT growth 3Y7.71%
EBIT growth 5Y1.48%
EBIT Next Year174.7%
EBIT Next 3Y46.45%
EBIT Next 5YN/A
FCF growth 1Y516.69%
FCF growth 3Y-6.83%
FCF growth 5Y37.67%
OCF growth 1Y163.05%
OCF growth 3Y4.5%
OCF growth 5Y14.68%