EL POLLO LOCO HOLDINGS INC (LOCO) Stock Fundamental Analysis
USA - NASDAQ:LOCO - US2686031079 - Common Stock
9.46 USD
+0.07 (+0.75%)
9.46 USD
0 (0%)
Overall LOCO gets a fundamental rating of 5 out of 10. We evaluated LOCO against 133 industry peers in the Hotels, Restaurants & Leisure industry. LOCO has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on LOCO.
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.
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
LOCO has a better Return On Assets (4.14%) than 61.19% of its industry peers.
Looking at the Return On Equity, with a value of 9.02%, LOCO is in the better half of the industry, outperforming 66.42% of the companies in the same industry.
The Return On Invested Capital of LOCO (5.62%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for LOCO is significantly below the industry average of 10.67%.
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
LOCO's Profit Margin of 5.15% is in line compared to the rest of the industry. LOCO outperforms 55.22% of its industry peers.
In the last couple of years the Profit Margin of LOCO has remained more or less at the same level.
The Operating Margin of LOCO (8.34%) is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LOCO is destroying value.
LOCO has less shares outstanding than it did 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
Based on the Altman-Z score of 1.52, we must say that LOCO is in the distress zone and has some risk of bankruptcy.
LOCO has a Altman-Z score (1.52) which is in line with its industry peers.
The Debt to FCF ratio of LOCO is 3.41, which is a good value as it means it would take LOCO, 3.41 years of fcf income to pay off all of its debts.
LOCO has a better Debt to FCF ratio (3.41) than 79.10% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that LOCO is not too dependend on debt financing.
LOCO has a better Debt to Equity ratio (0.26) than 75.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.7
WACC8.02%
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 85.07% of its industry peers.
A Quick Ratio of 0.33 indicates that LOCO may have some problems paying 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.
LOCO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.21% yearly.
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
LOCO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.91% yearly.
LOCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.91% yearly.
EPS Next Y0.4%
EPS Next 2Y2.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.29%
Revenue Next 2Y2.91%
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 stable.
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 10.75, the valuation of LOCO can be described as very reasonable.
LOCO's Price/Earnings ratio is rather cheap when compared to the industry. LOCO is cheaper than 92.54% of the companies in the same industry.
When comparing the Price/Earnings ratio of LOCO to the average of the S&P500 Index (26.89), we can say LOCO is valued rather cheaply.
A Price/Forward Earnings ratio of 10.04 indicates a reasonable valuation of LOCO.
Based on the Price/Forward Earnings ratio, LOCO is valued cheaply inside the industry as 88.06% of the companies are valued more expensively.
LOCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.75 | ||
| Fwd PE | 10.04 |
4.2 Price Multiples
88.81% of the companies in the same industry are more expensive than LOCO, based on the Enterprise Value to EBITDA ratio.
83.58% of the companies in the same industry are more expensive than LOCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.7 | ||
| EV/EBITDA | 6.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LOCO does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of LOCO may justify a higher PE ratio.
PEG (NY)27.18
PEG (5Y)3.35
EPS Next 2Y2.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LOCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.46
+0.07 (+0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners93.3%
Inst Owner Change-0.04%
Ins Owners2.65%
Ins Owner Change-0.34%
Market Cap283.80M
Revenue(TTM)479.69M
Net Income(TTM)24.73M
Analysts78.18
Price Target15.05 (59.09%)
Short Float %6.82%
Short Ratio9.7
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)-0.93%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)-0.9%
EPS NY rev (3m)2.16%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.75 | ||
| Fwd PE | 10.04 | ||
| P/S | 0.59 | ||
| P/FCF | 13.7 | ||
| P/OCF | 7.56 | ||
| P/B | 1.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.19 |
EPS(TTM)0.88
EY9.3%
EPS(NY)0.94
Fwd EY9.96%
FCF(TTM)0.69
FCFY7.3%
OCF(TTM)1.25
OCFY13.23%
SpS15.99
BVpS9.14
TBVpS-1.21
PEG (NY)27.18
PEG (5Y)3.35
Graham Number13.45
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%
ROICexgc growth 3Y-2.78%
ROICexgc 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
WACC8.02%
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 Y0.4%
EPS Next 2Y2.91%
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 Year4.29%
Revenue Next 2Y2.91%
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%
EL POLLO LOCO HOLDINGS INC / LOCO FAQ
What is the ChartMill fundamental rating of EL POLLO LOCO HOLDINGS INC (LOCO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to LOCO.
What is the valuation status for LOCO stock?
ChartMill assigns a valuation rating of 7 / 10 to EL POLLO LOCO HOLDINGS INC (LOCO). This can be considered as Undervalued.
What is the profitability of LOCO stock?
EL POLLO LOCO HOLDINGS INC (LOCO) has a profitability rating of 6 / 10.
What are the PE and PB ratios of EL POLLO LOCO HOLDINGS INC (LOCO) stock?
The Price/Earnings (PE) ratio for EL POLLO LOCO HOLDINGS INC (LOCO) is 10.75 and the Price/Book (PB) ratio is 1.04.
How financially healthy is EL POLLO LOCO HOLDINGS INC?
The financial health rating of EL POLLO LOCO HOLDINGS INC (LOCO) is 4 / 10.