EL POLLO LOCO HOLDINGS INC (LOCO) Stock Fundamental Analysis
USA - NASDAQ:LOCO - US2686031079 - Common Stock
9.47 USD
+0.07 (+0.74%)
Overall LOCO gets a fundamental rating of 5 out of 10. We evaluated LOCO against 134 industry peers in the Hotels, Restaurants & Leisure industry. LOCO has an average financial health and profitability rating. LOCO is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
LOCO had positive earnings in the past year.
LOCO had a positive operating cash flow in the past year.
In the past 5 years LOCO has always been profitable.
Each year in the past 5 years LOCO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.14%, LOCO is in the better half of the industry, outperforming 61.19% of the companies in the same industry.
The Return On Equity of LOCO (9.02%) is better than 66.42% of its industry peers.
LOCO has a Return On Invested Capital of 5.62%. This is comparable to the rest of the industry: LOCO outperforms 52.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LOCO is significantly below the industry average of 10.67%.
The 3 year average ROIC (5.08%) for LOCO is below the current ROIC(5.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 9.02% | ||
| ROIC | 5.62% |
ROA(3y)4.05%
ROA(5y)4.18%
ROE(3y)9.15%
ROE(5y)9.13%
ROIC(3y)5.08%
ROIC(5y)5.31%
1.3 Margins
The Profit Margin of LOCO (5.15%) is comparable to the rest of the industry.
LOCO's Profit Margin has been stable in the last couple of years.
LOCO has a Operating Margin of 8.34%. This is comparable to the rest of the industry: LOCO outperforms 49.25% of its industry peers.
LOCO's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 52.54%, LOCO is in the better half of the industry, outperforming 62.69% of the companies in the same industry.
LOCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.34% | ||
| PM (TTM) | 5.15% | ||
| GM | 52.54% |
OM growth 3Y-3.32%
OM growth 5Y0.33%
PM growth 3Y-5.35%
PM growth 5Y-0.72%
GM growth 3Y0.83%
GM growth 5Y1.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LOCO is destroying value.
The number of shares outstanding for LOCO has been reduced compared to 1 year ago.
LOCO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LOCO has an improved debt to assets ratio.
2.2 Solvency
LOCO has an Altman-Z score of 1.52. This is a bad value and indicates that LOCO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of LOCO (1.52) is comparable to the rest of the industry.
LOCO has a debt to FCF ratio of 3.41. This is a good value and a sign of high solvency as LOCO would need 3.41 years to pay back of all of its debts.
LOCO has a better Debt to FCF ratio (3.41) than 79.10% of its industry peers.
LOCO has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.26, LOCO is in the better half of the industry, outperforming 75.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.7
WACC8%
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 85.07% of its industry peers.
LOCO has a Quick 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.
LOCO has a worse Quick ratio (0.33) than 81.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.02% over the past year.
The Earnings Per Share has been growing slightly by 3.21% on average over the past years.
Looking at the last year, LOCO shows a small growth in Revenue. The Revenue has grown by 1.85% in the last year.
LOCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.35% yearly.
EPS 1Y (TTM)6.02%
EPS 3Y1.15%
EPS 5Y3.21%
EPS Q2Q%7.69%
Revenue 1Y (TTM)1.85%
Revenue growth 3Y1.35%
Revenue growth 5Y1.35%
Sales Q2Q%2.99%
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 3.46% on average per year.
Based on estimates for the next years, LOCO will show a small growth in Revenue. The Revenue will grow by 3.00% on average per year.
EPS Next Y1.31%
EPS Next 2Y3.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.5%
Revenue Next 2Y3%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.76 indicates a reasonable valuation of LOCO.
LOCO's Price/Earnings ratio is rather cheap when compared to the industry. LOCO is cheaper than 91.79% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.42. LOCO is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.94, the valuation of LOCO can be described as reasonable.
Based on the Price/Forward Earnings ratio, LOCO is valued cheaper than 88.81% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LOCO to the average of the S&P500 Index (22.94), we can say LOCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
88.06% of the companies in the same industry are more expensive than LOCO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LOCO is valued cheaper than 84.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.71 | ||
| EV/EBITDA | 6.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of LOCO may justify a higher PE ratio.
PEG (NY)8.2
PEG (5Y)3.35
EPS Next 2Y3.46%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LOCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:LOCO (10/20/2025, 11:24:08 AM)
9.47
+0.07 (+0.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners93.3%
Inst Owner Change-0.07%
Ins Owners2.65%
Ins Owner Change-0.34%
Market Cap284.10M
Analysts78.18
Price Target15.05 (58.92%)
Short Float %7.71%
Short Ratio9.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.03%
Min EPS beat(2)-9.13%
Max EPS beat(2)13.2%
EPS beat(4)3
Avg EPS beat(4)18.06%
Min EPS beat(4)-9.13%
Max EPS beat(4)45.24%
EPS beat(8)6
Avg EPS beat(8)18.29%
EPS beat(12)10
Avg EPS beat(12)17.56%
EPS beat(16)13
Avg EPS beat(16)16.99%
Revenue beat(2)0
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)-0.7%
Revenue beat(8)2
Avg Revenue beat(8)-0.59%
Revenue beat(12)3
Avg Revenue beat(12)-0.85%
Revenue beat(16)3
Avg Revenue beat(16)-1.3%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.69%
EPS NY rev (1m)0%
EPS NY rev (3m)3.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 9.94 | ||
| P/S | 0.59 | ||
| P/FCF | 13.71 | ||
| P/OCF | 7.57 | ||
| P/B | 1.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.15 |
EPS(TTM)0.88
EY9.29%
EPS(NY)0.95
Fwd EY10.06%
FCF(TTM)0.69
FCFY7.29%
OCF(TTM)1.25
OCFY13.21%
SpS15.99
BVpS9.14
TBVpS-1.21
PEG (NY)8.2
PEG (5Y)3.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 9.02% | ||
| ROCE | 7.7% | ||
| ROIC | 5.62% | ||
| ROICexc | 5.72% | ||
| ROICexgc | 14.58% | ||
| OM | 8.34% | ||
| PM (TTM) | 5.15% | ||
| GM | 52.54% | ||
| FCFM | 4.32% |
ROA(3y)4.05%
ROA(5y)4.18%
ROE(3y)9.15%
ROE(5y)9.13%
ROIC(3y)5.08%
ROIC(5y)5.31%
ROICexc(3y)5.17%
ROICexc(5y)5.47%
ROICexgc(3y)13.16%
ROICexgc(5y)13.82%
ROCE(3y)6.96%
ROCE(5y)7.28%
ROICexcg growth 3Y-2.78%
ROICexcg growth 5Y4.42%
ROICexc growth 3Y-2.31%
ROICexc growth 5Y2.81%
OM growth 3Y-3.32%
OM growth 5Y0.33%
PM growth 3Y-5.35%
PM growth 5Y-0.72%
GM growth 3Y0.83%
GM growth 5Y1.16%
F-Score8
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.41 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 106.38% | ||
| Cap/Sales | 3.51% | ||
| Interest Coverage | 7.78 | ||
| Cash Conversion | 67.22% | ||
| Profit Quality | 83.77% | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 1.52 |
F-Score8
WACC8%
ROIC/WACC0.7
Cap/Depr(3y)133.19%
Cap/Depr(5y)110.29%
Cap/Sales(3y)4.27%
Cap/Sales(5y)3.63%
Profit Quality(3y)91.05%
Profit Quality(5y)106.37%
High Growth Momentum
Growth
EPS 1Y (TTM)6.02%
EPS 3Y1.15%
EPS 5Y3.21%
EPS Q2Q%7.69%
EPS Next Y1.31%
EPS Next 2Y3.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.85%
Revenue growth 3Y1.35%
Revenue growth 5Y1.35%
Sales Q2Q%2.99%
Revenue Next Year4.5%
Revenue Next 2Y3%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-0.28%
EBIT growth 3Y-2.01%
EBIT growth 5Y1.69%
EBIT Next Year56.86%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-26.54%
FCF growth 3Y-7.55%
FCF growth 5Y6%
OCF growth 1Y-22.65%
OCF growth 3Y-3.53%
OCF growth 5Y5.3%