Overall EAT gets a fundamental rating of 5 out of 10. We evaluated EAT against 132 industry peers in the Hotels, Restaurants & Leisure industry. EAT has only an average score on both its financial health and profitability. EAT may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make EAT suitable for value investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year EAT was profitable.
EAT had a positive operating cash flow in the past year.
Of the past 5 years EAT 4 years were profitable.
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.
The Return On Equity of EAT (94.42%) is better than 94.70% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.64%, EAT belongs to the top of the industry, outperforming 84.85% 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 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.
EAT's Profit Margin has declined in the last couple of years.
EAT has a Operating Margin (10.56%) 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 18.50%, EAT is not doing good in the industry: 87.12% of the companies in the same industry are doing better.
EAT's Gross Margin has improved in the last couple of years.

		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

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EAT is creating value.
The number of shares outstanding for EAT has been increased compared to 1 year ago.
The number of shares outstanding for EAT has been reduced compared to 5 years ago.
EAT has a worse debt/assets ratio than last year.

2.2 Solvency

EAT has an Altman-Z score of 3.82. This indicates that EAT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EAT (3.82) is better 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.
Looking at the Debt to Equity ratio, with a value of 1.53, EAT is in line with its industry, outperforming 54.55% 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	3.82

ROIC/WACC1.88

WACC8.86%

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.
With a Current ratio value of 0.35, EAT is not doing good in the industry: 85.61% of the companies in the same industry are doing better.
A Quick Ratio of 0.29 indicates that EAT may have some problems paying its short term obligations.
The Quick ratio of EAT (0.29) is worse than 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

EAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 106.26%, which is quite impressive.
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 grown by 81.56% in the past year. This is a very strong growth!
EAT shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -63.21% yearly.

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 14.31% on average over the next years. This is quite good.
EAT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.49% yearly.

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 15.92, EAT is valued correctly.
EAT's Price/Earnings ratio is a bit cheaper when compared to the industry. EAT is cheaper than 78.79% of the companies in the same industry.
EAT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.87.
A Price/Forward Earnings ratio of 13.01 indicates a correct valuation of EAT.
Based on the Price/Forward Earnings ratio, EAT is valued cheaper than 81.06% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.96. EAT is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	15.92
Fwd PE	13.01

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 61.36% of the companies listed in the same industry.
84.09% 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	14.76
EV/EBITDA	10.73

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.
A more expensive valuation may be justified as EAT's earnings are expected to grow with 14.31% in the coming years.