BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
NYSE:EAT - New York Stock Exchange, Inc. - US1096411004 - Common Stock - Currency: USD
Overall EAT gets a fundamental rating of 5 out of 10. We evaluated EAT against 135 industry peers in the Hotels, Restaurants & Leisure industry. EAT has an average financial health and profitability rating. EAT has a decent growth rate and is not valued too expensively.
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.
In the past 5 years EAT has always been profitable.
Each year in the past 5 years EAT had a positive operating cash flow.
1.2 Ratios
EAT has a Return On Assets of 12.96%. This is amongst the best in the industry. EAT outperforms 88.89% of its industry peers.
With an excellent Return On Equity value of 128.73%, EAT belongs to the best of the industry, outperforming 99.26% of the companies in the same industry.
With an excellent Return On Invested Capital value of 20.58%, EAT belongs to the best of the industry, outperforming 91.85% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EAT is significantly below the industry average of 14.13%.
The last Return On Invested Capital (20.58%) for EAT is above the 3 year average (8.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.96% | ||
| ROE | 128.73% | ||
| ROIC | 20.58% |
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
With a decent Profit Margin value of 6.50%, EAT is doing good in the industry, outperforming 61.48% of the companies in the same industry.
In the last couple of years the Profit Margin of EAT has declined.
Looking at the Operating Margin, with a value of 9.67%, EAT is in line with its industry, outperforming 51.11% of the companies in the same industry.
EAT's Operating Margin has declined in the last couple of years.
EAT has a worse Gross Margin (17.64%) than 88.89% of its industry peers.
In the last couple of years the Gross Margin of EAT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.67% | ||
| PM (TTM) | 6.5% | ||
| 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.
EAT has more shares outstanding than it did 1 year ago.
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 4.17 indicates that EAT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.17, EAT belongs to the best of the industry, outperforming 85.93% of the companies in the same industry.
The Debt to FCF ratio of EAT is 1.39, which is an excellent value as it means it would take EAT, only 1.39 years of fcf income to pay off all of its debts.
EAT has a better Debt to FCF ratio (1.39) than 88.15% of its industry peers.
EAT has a Debt/Equity ratio of 2.00. This is a high value indicating a heavy dependency on external financing.
EAT has a Debt to Equity ratio (2.00) 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 | 2 | ||
| Debt/FCF | 1.39 | ||
| Altman-Z | 4.17 |
ROIC/WACC2.3
WACC8.95%
2.3 Liquidity
A Current Ratio of 0.28 indicates that EAT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.28, EAT is doing worse than 89.63% of the companies in the same industry.
A Quick Ratio of 0.23 indicates that EAT may have some problems paying its short term obligations.
EAT has a worse Quick ratio (0.23) than 89.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
EAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 105.64%, which is quite impressive.
EAT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.69% yearly.
EAT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.80%.
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%26.13%
3.2 Future
The Earnings Per Share is expected to grow by 38.89% on average over the next years. This is a very strong growth
Based on estimates for the next years, EAT will show a small growth in Revenue. The Revenue will grow by 0.34% on average per year.
EPS Next Y114.51%
EPS Next 2Y54.71%
EPS Next 3Y38.89%
EPS Next 5YN/A
Revenue Next Year22.13%
Revenue Next 2Y13.17%
Revenue Next 3Y10.5%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.27, EAT is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of EAT indicates a somewhat cheap valuation: EAT is cheaper than 71.85% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, EAT is valued a bit cheaper.
EAT is valuated correctly with a Price/Forward Earnings ratio of 15.67.
Based on the Price/Forward Earnings ratio, EAT is valued a bit cheaper than 73.33% of the companies in the same industry.
EAT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 15.67 |
4.2 Price Multiples
62.96% of the companies in the same industry are more expensive than EAT, based on the Enterprise Value to EBITDA ratio.
EAT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EAT is cheaper than 75.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.56 | ||
| EV/EBITDA | 10.36 |
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.
The decent profitability rating of EAT may justify a higher PE ratio.
EAT's earnings are expected to grow with 38.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)27.77
EPS Next 2Y54.71%
EPS Next 3Y38.89%
5. Dividend
5.1 Amount
EAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
154.53
+5.53 (+3.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners105.54%
Inst Owner Change-2.26%
Ins Owners1.58%
Ins Owner Change-1.63%
Market Cap6.87B
Analysts70.4
Price Target168.2 (8.85%)
Short Float %12.19%
Short Ratio3.12
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)4.6%
Min Revenue beat(2)0.71%
Max Revenue beat(2)8.48%
Revenue beat(4)4
Avg Revenue beat(4)3.64%
Min Revenue beat(4)0.71%
Max Revenue beat(4)8.48%
Revenue beat(8)4
Avg Revenue beat(8)1.24%
Revenue beat(12)6
Avg Revenue beat(12)1.03%
Revenue beat(16)6
Avg Revenue beat(16)0.55%
PT rev (1m)-10.67%
PT rev (3m)24.15%
EPS NQ rev (1m)10.82%
EPS NQ rev (3m)11.84%
EPS NY rev (1m)4.57%
EPS NY rev (3m)4.66%
Revenue NQ rev (1m)4.75%
Revenue NQ rev (3m)4.83%
Revenue NY rev (1m)2.06%
Revenue NY rev (3m)2.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 15.67 | ||
| P/S | 1.34 | ||
| P/FCF | 17.56 | ||
| P/OCF | 10.83 | ||
| P/B | 26.52 | ||
| P/tB | 148.04 | ||
| EV/EBITDA | 10.36 |
EPS(TTM)8.02
EY5.19%
EPS(NY)9.86
Fwd EY6.38%
FCF(TTM)8.8
FCFY5.69%
OCF(TTM)14.27
OCFY9.24%
SpS115.42
BVpS5.83
TBVpS1.04
PEG (NY)0.17
PEG (5Y)27.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.96% | ||
| ROE | 128.73% | ||
| ROCE | 26.05% | ||
| ROIC | 20.58% | ||
| ROICexc | 20.77% | ||
| ROICexgc | 23.41% | ||
| OM | 9.67% | ||
| PM (TTM) | 6.5% | ||
| GM | 17.64% | ||
| FCFM | 7.62% |
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 | 1.39 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 125.66% | ||
| Cap/Sales | 4.74% | ||
| Interest Coverage | 7.84 | ||
| Cash Conversion | 91.98% | ||
| Profit Quality | 117.31% | ||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 4.17 |
F-Score8
WACC8.95%
ROIC/WACC2.3
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 Y114.51%
EPS Next 2Y54.71%
EPS Next 3Y38.89%
EPS Next 5YN/A
Revenue 1Y (TTM)19.8%
Revenue growth 3Y9.77%
Revenue growth 5Y6.53%
Sales Q2Q%26.13%
Revenue Next Year22.13%
Revenue Next 2Y13.17%
Revenue Next 3Y10.5%
Revenue Next 5Y0.34%
EBIT growth 1Y99.88%
EBIT growth 3Y7.71%
EBIT growth 5Y1.48%
EBIT Next Year150.84%
EBIT Next 3Y42.82%
EBIT Next 5YN/A
FCF growth 1Y515.91%
FCF growth 3Y-6.83%
FCF growth 5Y37.67%
OCF growth 1Y162.84%
OCF growth 3Y4.5%
OCF growth 5Y14.68%