EL POLLO LOCO HOLDINGS INC (LOCO)
US2686031079 - Common Stock
Taking everything into account, LOCO scores 4 out of 10 in our fundamental rating. LOCO was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. While LOCO is still in line with the averages on profitability rating, there are concerns on its financial health. LOCO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LOCO had positive earnings in the past year.
In the past year LOCO had a positive cash flow from operations.
Each year in the past 5 years LOCO has been profitable.
Each year in the past 5 years LOCO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LOCO (4.31%) is better than 60.45% of its industry peers.
LOCO's Return On Equity of 10.19% is fine compared to the rest of the industry. LOCO outperforms 63.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.09%, LOCO is in line with its industry, outperforming 49.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LOCO is below the industry average of 9.90%.
The last Return On Invested Capital (5.09%) for LOCO is above the 3 year average (5.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 10.19% | ||
| ROIC | 5.09% |
ROA(3y)4.18%
ROA(5y)4.11%
ROE(3y)8.99%
ROE(5y)9.19%
ROIC(3y)5.09%
ROIC(5y)5.12%
1.3 Margins
The Profit Margin of LOCO (5.45%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LOCO has declined.
LOCO has a Operating Margin (7.78%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LOCO has grown nicely.
LOCO has a Gross Margin (49.76%) which is in line with its industry peers.
In the last couple of years the Gross Margin of LOCO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.78% | ||
| PM (TTM) | 5.45% | ||
| GM | 49.76% |
OM growth 3Y-5.43%
OM growth 5Y3.63%
PM growth 3Y-1.75%
PM growth 5YN/A
GM growth 3Y-0.14%
GM growth 5Y0.42%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LOCO is destroying value.
LOCO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for LOCO has been reduced compared to 5 years ago.
Compared to 1 year ago, LOCO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.54, we must say that LOCO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of LOCO (1.54) is comparable to the rest of the industry.
The Debt to FCF ratio of LOCO is 4.43, which is a neutral value as it means it would take LOCO, 4.43 years of fcf income to pay off all of its debts.
LOCO's Debt to FCF ratio of 4.43 is fine compared to the rest of the industry. LOCO outperforms 76.12% of its industry peers.
LOCO has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
LOCO's Debt to Equity ratio of 0.34 is fine compared to the rest of the industry. LOCO outperforms 72.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 4.43 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.61
WACC8.39%
2.3 Liquidity
LOCO has a Current Ratio of 0.35. This is a bad value and indicates that LOCO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of LOCO (0.35) is worse than 91.79% of its industry peers.
A Quick Ratio of 0.32 indicates that LOCO may have some problems paying its short term obligations.
LOCO has a worse Quick ratio (0.32) than 85.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
LOCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.08%, which is quite impressive.
LOCO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.55% yearly.
The Revenue has decreased by -0.28% in the past year.
The Revenue has been growing slightly by 1.46% on average over the past years.
EPS 1Y (TTM)23.08%
EPS 3Y-3.45%
EPS 5Y-0.55%
EPS growth Q2Q57.14%
Revenue 1Y (TTM)-0.28%
Revenue growth 3Y3.22%
Revenue growth 5Y1.46%
Revenue growth Q2Q1.42%
3.2 Future
Based on estimates for the next years, LOCO will show a small growth in Earnings Per Share. The EPS will grow by 0.29% on average per year.
LOCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.46% yearly.
EPS Next Y-7.56%
EPS Next 2Y0.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.88%
Revenue Next 2Y2.46%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.79, the valuation of LOCO can be described as correct.
Based on the Price/Earnings ratio, LOCO is valued cheaper than 84.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.60. LOCO is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 15.23 indicates a correct valuation of LOCO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LOCO indicates a somewhat cheap valuation: LOCO is cheaper than 69.40% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, LOCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 15.23 |
4.2 Price Multiples
LOCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LOCO is cheaper than 74.63% of the companies in the same industry.
LOCO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LOCO is cheaper than 74.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.77 | ||
| EV/EBITDA | 8.17 |
4.3 Compensation for Growth
LOCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LOCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EL POLLO LOCO HOLDINGS INC
NASDAQ:LOCO (5/17/2024, 7:11:07 PM)
After market: 11 -0.03 (-0.27%)11.03
-0.07 (-0.63%)
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 Cap343.92M
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)
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PT rev (1m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 15.23 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 10.19% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.78% | ||
| PM (TTM) | 5.45% | ||
| GM | 49.76% | ||
| 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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.32 | ||
| 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)23.08%
EPS 3Y-3.45%
EPS 5Y
EPS growth Q2Q
EPS Next Y-7.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.28%
Revenue growth 3Y3.22%
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