EL POLLO LOCO HOLDINGS INC (LOCO) Stock Fundamental Analysis
NASDAQ:LOCO - US2686031079 - Common Stock
10.48 USD
-0.2 (-1.87%)
10.48 USD
0 (0%)
LOCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 131 industry peers in the Hotels, Restaurants & Leisure industry. LOCO has only an average score on both its financial health and profitability. LOCO may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year LOCO was profitable.
LOCO had a positive operating cash flow in the past year.
In the past 5 years LOCO has always been profitable.
In the past 5 years LOCO always reported a positive cash flow from operatings.
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 62.60% of the companies in the same industry.
The Return On Equity of LOCO (9.02%) is better than 66.41% of its industry peers.
LOCO has a Return On Invested Capital (5.62%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for LOCO is significantly below the industry average of 15.87%.
The last Return On Invested Capital (5.62%) for LOCO is above the 3 year average (5.08%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 5.15%, LOCO is in line with its industry, outperforming 57.25% of the companies in the same industry.
LOCO's Profit Margin has been stable in the last couple of years.
LOCO has a Operating Margin (8.34%) which is in line with its industry peers.
LOCO's Operating Margin has been stable in the last couple of years.
LOCO has a Gross Margin of 52.54%. This is in the better half of the industry: LOCO outperforms 61.83% of its industry peers.
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
LOCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for LOCO has been reduced compared to 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 an improved debt to assets ratio.
2.2 Solvency
LOCO has an Altman-Z score of 1.58. This is a bad value and indicates that LOCO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.58, LOCO perfoms like the industry average, outperforming 48.09% of the companies in the same 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.
Looking at the Debt to FCF ratio, with a value of 3.41, LOCO belongs to the top of the industry, outperforming 80.92% of the companies in the same industry.
LOCO has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.26, LOCO is doing good in the industry, outperforming 75.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.63
WACC8.99%
2.3 Liquidity
A Current Ratio of 0.35 indicates that LOCO may have some problems paying its short term obligations.
The Current ratio of LOCO (0.35) is worse than 85.50% 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.
The Quick ratio of LOCO (0.33) is worse than 80.92% 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.
The Revenue has been growing slightly by 1.85% in the past year.
Measured over the past years, LOCO shows a small growth in Revenue. The Revenue has been growing by 1.35% on average per year.
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
The Earnings Per Share is expected to grow by 3.46% on average over the next years.
LOCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.00% yearly.
EPS Next Y1.31%
EPS Next 2Y3.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.45%
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.
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
With a Price/Earnings ratio of 11.91, the valuation of LOCO can be described as very reasonable.
Based on the Price/Earnings ratio, LOCO is valued cheaply inside the industry as 89.31% of the companies are valued more expensively.
LOCO is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.00, which indicates a very decent valuation of LOCO.
Based on the Price/Forward Earnings ratio, LOCO is valued cheaper than 87.02% of the companies in the same industry.
LOCO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 11 |
4.2 Price Multiples
89.31% 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 83.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.18 | ||
| EV/EBITDA | 6.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LOCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)9.07
PEG (5Y)3.71
EPS Next 2Y3.46%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LOCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.48
-0.2 (-1.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners94.26%
Inst Owner Change-2.04%
Ins Owners2.66%
Ins Owner Change1.26%
Market Cap314.40M
Analysts78.18
Price Target15.05 (43.61%)
Short Float %6.91%
Short Ratio5.74
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)0.23%
EPS NQ rev (3m)-11.02%
EPS NY rev (1m)3.09%
EPS NY rev (3m)3.39%
Revenue NQ rev (1m)-0.99%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 11 | ||
| P/S | 0.66 | ||
| P/FCF | 15.18 | ||
| P/OCF | 8.38 | ||
| P/B | 1.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.73 |
EPS(TTM)0.88
EY8.4%
EPS(NY)0.95
Fwd EY9.09%
FCF(TTM)0.69
FCFY6.59%
OCF(TTM)1.25
OCFY11.94%
SpS15.99
BVpS9.14
TBVpS-1.21
PEG (NY)9.07
PEG (5Y)3.71
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 | 1.58 |
F-Score8
WACC8.99%
ROIC/WACC0.63
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 Year4.45%
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 Year52.1%
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%