PORTILLO'S INC-CL A (PTLO) Stock Fundamental Analysis
NASDAQ:PTLO - Nasdaq - US73642K1060 - Common Stock - Currency: USD
PTLO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 131 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of PTLO while its profitability can be described as average. PTLO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PTLO was profitable.
In the past year PTLO had a positive cash flow from operations.
In multiple years PTLO reported negative net income over the last 5 years.
PTLO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PTLO's Return On Assets of 1.87% is in line compared to the rest of the industry. PTLO outperforms 46.97% of its industry peers.
PTLO's Return On Equity of 6.88% is fine compared to the rest of the industry. PTLO outperforms 63.64% of its industry peers.
PTLO has a Return On Invested Capital of 3.59%. This is comparable to the rest of the industry: PTLO outperforms 40.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PTLO is significantly below the industry average of 13.91%.
The last Return On Invested Capital (3.59%) for PTLO is above the 3 year average (3.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 6.88% | ||
| ROIC | 3.59% |
ROA(3y)1.39%
ROA(5y)0.35%
ROE(3y)5.82%
ROE(5y)1.23%
ROIC(3y)3.39%
ROIC(5y)3.73%
1.3 Margins
With a Profit Margin value of 3.88%, PTLO perfoms like the industry average, outperforming 55.30% of the companies in the same industry.
PTLO's Operating Margin of 8.14% is in line compared to the rest of the industry. PTLO outperforms 48.48% of its industry peers.
In the last couple of years the Operating Margin of PTLO has declined.
PTLO has a Gross Margin of 65.91%. This is in the better half of the industry: PTLO outperforms 79.55% of its industry peers.
PTLO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.14% | ||
| PM (TTM) | 3.88% | ||
| GM | 65.91% |
OM growth 3Y14.39%
OM growth 5Y-3.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.39%
GM growth 5Y-0.87%
2. Health
2.1 Basic Checks
PTLO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PTLO has more shares outstanding
Compared to 5 years ago, PTLO has more shares outstanding
PTLO has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.01, we must say that PTLO is in the distress zone and has some risk of bankruptcy.
PTLO has a Altman-Z score of 1.01. This is in the lower half of the industry: PTLO underperforms 67.42% of its industry peers.
PTLO has a debt to FCF ratio of 38.23. This is a negative value and a sign of low solvency as PTLO would need 38.23 years to pay back of all of its debts.
With a Debt to FCF ratio value of 38.23, PTLO perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that PTLO is somewhat dependend on debt financing.
PTLO has a Debt to Equity ratio of 0.77. This is in the better half of the industry: PTLO outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 38.23 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.39
WACC9.24%
2.3 Liquidity
A Current Ratio of 0.25 indicates that PTLO may have some problems paying its short term obligations.
PTLO has a Current ratio of 0.25. This is amonst the worse of the industry: PTLO underperforms 95.45% of its industry peers.
PTLO has a Quick Ratio of 0.25. This is a bad value and indicates that PTLO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.21, PTLO is doing worse than 94.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.50% over the past year.
Looking at the last year, PTLO shows a small growth in Revenue. The Revenue has grown by 4.56% in the last year.
PTLO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.19% yearly.
EPS 1Y (TTM)7.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-37.5%
Revenue 1Y (TTM)4.56%
Revenue growth 3Y9.92%
Revenue growth 5Y8.19%
Sales Q2Q%6.4%
3.2 Future
PTLO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.70% yearly.
The Revenue is expected to grow by 17.59% on average over the next years. This is quite good.
EPS Next Y-13.52%
EPS Next 2Y4.77%
EPS Next 3Y7.7%
EPS Next 5YN/A
Revenue Next Year10.05%
Revenue Next 2Y11.91%
Revenue Next 3Y11.94%
Revenue Next 5Y17.59%
3.3 Evolution
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 26.02, PTLO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of PTLO is on the same level as its industry peers.
PTLO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.54.
PTLO is valuated rather expensively with a Price/Forward Earnings ratio of 22.16.
PTLO's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PTLO to the average of the S&P500 Index (36.44), we can say PTLO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.02 | ||
| Fwd PE | 22.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PTLO is on the same level as its industry peers.
PTLO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.03 | ||
| EV/EBITDA | 12.49 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.77%
EPS Next 3Y7.7%
5. Dividend
5.1 Amount
PTLO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.19
+0.13 (+1.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners90.41%
Inst Owner Change0.07%
Ins Owners6.79%
Ins Owner Change31.81%
Market Cap837.24M
Analysts81.25
Price Target15.5 (38.52%)
Short Float %15.46%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)114.34%
Min EPS beat(2)2.59%
Max EPS beat(2)226.09%
EPS beat(4)3
Avg EPS beat(4)71.82%
Min EPS beat(4)-10.87%
Max EPS beat(4)226.09%
EPS beat(8)6
Avg EPS beat(8)61.84%
EPS beat(12)9
Avg EPS beat(12)101.73%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.04%
Min Revenue beat(2)-4.12%
Max Revenue beat(2)-1.95%
Revenue beat(4)0
Avg Revenue beat(4)-3.37%
Min Revenue beat(4)-4.12%
Max Revenue beat(4)-1.95%
Revenue beat(8)0
Avg Revenue beat(8)-3.37%
Revenue beat(12)0
Avg Revenue beat(12)-3.12%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.65%
PT rev (3m)-8.98%
EPS NQ rev (1m)4.68%
EPS NQ rev (3m)-5.38%
EPS NY rev (1m)6.48%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-1.71%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.02 | ||
| Fwd PE | 22.16 | ||
| P/S | 1.16 | ||
| P/FCF | 100.03 | ||
| P/OCF | 8.51 | ||
| P/B | 2.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.49 |
EPS(TTM)0.43
EY3.84%
EPS(NY)0.5
Fwd EY4.51%
FCF(TTM)0.11
FCFY1%
OCF(TTM)1.31
OCFY11.75%
SpS9.64
BVpS5.44
TBVpS-3.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 6.88% | ||
| ROCE | 4.4% | ||
| ROIC | 3.59% | ||
| ROICexc | 3.63% | ||
| ROICexgc | 6.74% | ||
| OM | 8.14% | ||
| PM (TTM) | 3.88% | ||
| GM | 65.91% | ||
| FCFM | 1.16% |
ROA(3y)1.39%
ROA(5y)0.35%
ROE(3y)5.82%
ROE(5y)1.23%
ROIC(3y)3.39%
ROIC(5y)3.73%
ROICexc(3y)3.46%
ROICexc(5y)3.86%
ROICexgc(3y)7.08%
ROICexgc(5y)13.23%
ROCE(3y)3.98%
ROCE(5y)4.36%
ROICexcg growth 3Y-12.98%
ROICexcg growth 5Y-25.14%
ROICexc growth 3Y9.14%
ROICexc growth 5Y-6.41%
OM growth 3Y14.39%
OM growth 5Y-3.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.39%
GM growth 5Y-0.87%
F-Score5
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 38.23 | ||
| Debt/EBITDA | 3.67 | ||
| Cap/Depr | 332.1% | ||
| Cap/Sales | 12.48% | ||
| Interest Coverage | 3.11 | ||
| Cash Conversion | 114.67% | ||
| Profit Quality | 29.89% | ||
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | 1.01 |
F-Score5
WACC9.24%
ROIC/WACC0.39
Cap/Depr(3y)304.2%
Cap/Depr(5y)231.02%
Cap/Sales(3y)11.11%
Cap/Sales(5y)8.96%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-37.5%
EPS Next Y-13.52%
EPS Next 2Y4.77%
EPS Next 3Y7.7%
EPS Next 5YN/A
Revenue 1Y (TTM)4.56%
Revenue growth 3Y9.92%
Revenue growth 5Y8.19%
Sales Q2Q%6.4%
Revenue Next Year10.05%
Revenue Next 2Y11.91%
Revenue Next 3Y11.94%
Revenue Next 5Y17.59%
EBIT growth 1Y4.55%
EBIT growth 3Y25.74%
EBIT growth 5Y3.92%
EBIT Next Year93.44%
EBIT Next 3Y32.77%
EBIT Next 5YN/A
FCF growth 1Y429.75%
FCF growth 3Y14.34%
FCF growth 5Y-14.02%
OCF growth 1Y57.19%
OCF growth 3Y31.73%
OCF growth 5Y17.73%