BRINKER INTERNATIONAL INC (EAT)
US1096411004 - Common Stock
Taking everything into account, EAT scores 4 out of 10 in our fundamental rating. EAT was compared to 136 industry peers in the Hotels, Restaurants & Leisure industry. While EAT is still in line with the averages on profitability rating, there are concerns on its financial health. EAT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year EAT was profitable.
In the past year EAT had a positive cash flow from operations.
Each year in the past 5 years EAT has 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 6.10%. This is in the better half of the industry: EAT outperforms 73.88% of its industry peers.
EAT has a Return On Invested Capital of 10.23%. This is in the better half of the industry: EAT outperforms 72.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EAT is in line with the industry average of 10.07%.
The last Return On Invested Capital (10.23%) for EAT is above the 3 year average (8.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.1% | ||
| ROE | N/A | ||
| ROIC | 10.23% |
ROA(3y)4.88%
ROA(5y)5.6%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.37%
ROIC(5y)10.75%
1.3 Margins
EAT has a Profit Margin (3.55%) which is comparable to the rest of the industry.
EAT's Profit Margin has declined in the last couple of years.
EAT has a Operating Margin of 5.80%. This is comparable to the rest of the industry: EAT outperforms 41.79% of its industry peers.
In the last couple of years the Operating Margin of EAT has declined.
EAT has a Gross Margin of 13.70%. This is amonst the worse of the industry: EAT underperforms 91.79% of its industry peers.
EAT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.8% | ||
| PM (TTM) | 3.55% | ||
| GM | 13.7% |
OM growth 3Y6.24%
OM growth 5Y-12.28%
PM growth 3Y46.31%
PM growth 5Y-9.17%
GM growth 3Y-6.47%
GM growth 5Y-5.02%
2. Health
2.1 Basic Checks
EAT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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 increased compared to 5 years ago.
The debt/assets ratio for EAT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.28 indicates that EAT is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of EAT (2.28) is better than 68.66% of its industry peers.
The Debt to FCF ratio of EAT is 5.69, which is a neutral value as it means it would take EAT, 5.69 years of fcf income to pay off all of its debts.
EAT has a Debt to FCF ratio of 5.69. This is in the better half of the industry: EAT outperforms 72.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.69 | ||
| Altman-Z | 2.28 |
ROIC/WACC1.22
WACC8.4%
2.3 Liquidity
EAT has a Current Ratio of 0.30. 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 Current ratio of 0.30. This is amonst the worse of the industry: EAT underperforms 96.27% of its industry peers.
EAT has a Quick Ratio of 0.30. This is a bad value and indicates that EAT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of EAT (0.24) is worse than 93.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
EAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.75%, which is quite impressive.
EAT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.62% yearly.
Looking at the last year, EAT shows a small growth in Revenue. The Revenue has grown by 4.98% in the last year.
The Revenue has been growing slightly by 5.68% on average over the past years.
EPS 1Y (TTM)51.75%
EPS 3Y15.58%
EPS 5Y-4.62%
EPS growth Q2Q0.81%
Revenue 1Y (TTM)4.98%
Revenue growth 3Y10.32%
Revenue growth 5Y5.68%
Revenue growth Q2Q3.43%
3.2 Future
The Earnings Per Share is expected to grow by 16.96% on average over the next years. This is quite good.
EAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.25% yearly.
EPS Next Y31.78%
EPS Next 2Y20.45%
EPS Next 3Y16.96%
EPS Next 5YN/A
Revenue Next Year4.76%
Revenue Next 2Y4.09%
Revenue Next 3Y3.61%
Revenue Next 5Y1.25%
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
The Price/Earnings ratio is 14.10, which indicates a correct valuation of EAT.
Compared to the rest of the industry, the Price/Earnings ratio of EAT indicates a rather cheap valuation: EAT is cheaper than 82.09% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.28, EAT is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.49, EAT is valued correctly.
EAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EAT is cheaper than 78.36% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.88. EAT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 13.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EAT is valued a bit cheaper than 76.12% of the companies in the same industry.
74.63% 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 | 16.58 | ||
| EV/EBITDA | 7.81 |
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.
A more expensive valuation may be justified as EAT's earnings are expected to grow with 16.96% in the coming years.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y20.45%
EPS Next 3Y16.96%
5. Dividend
5.1 Amount
No dividends for EAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BRINKER INTERNATIONAL INC
NYSE:EAT (5/3/2024, 7:04:00 PM)
After market: 55.0678 +0.09 (+0.16%)54.98
+0.64 (+1.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 13.49 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.1% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.8% | ||
| PM (TTM) | 3.55% | ||
| GM | 13.7% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)51.75%
EPS 3Y15.58%
EPS 5Y
EPS growth Q2Q
EPS Next Y31.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.98%
Revenue growth 3Y10.32%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y