CARROLS RESTAURANT GROUP INC (TAST)
US14574X1046 - Common Stock
We assign a fundamental rating of 4 out of 10 to TAST. TAST was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. TAST has a medium profitability rating, but doesn't score so well on its financial health evaluation. TAST has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TAST was profitable.
TAST had a positive operating cash flow in the past year.
In the past 5 years TAST reported 4 times negative net income.
Each year in the past 5 years TAST had a positive operating cash flow.
1.2 Ratios
TAST has a Return On Assets of 2.13%. This is comparable to the rest of the industry: TAST outperforms 47.01% of its industry peers.
The Return On Equity of TAST (18.29%) is better than 73.13% of its industry peers.
TAST has a Return On Invested Capital of 4.42%. This is comparable to the rest of the industry: TAST outperforms 43.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.13% | ||
| ROE | 18.29% | ||
| ROIC | 4.42% |
ROA(3y)-1.71%
ROA(5y)-1.73%
ROE(3y)-17.32%
ROE(5y)-14.63%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of TAST (1.81%) is worse than 62.69% of its industry peers.
In the last couple of years the Profit Margin of TAST has grown nicely.
TAST's Operating Margin of 3.70% is on the low side compared to the rest of the industry. TAST is outperformed by 67.16% of its industry peers.
TAST's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 39.74%, TAST is not doing good in the industry: 64.93% of the companies in the same industry are doing better.
TAST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.7% | ||
| PM (TTM) | 1.81% | ||
| GM | 39.74% |
OM growth 3Y49.37%
OM growth 5Y2.77%
PM growth 3YN/A
PM growth 5Y21.87%
GM growth 3Y1.02%
GM growth 5Y-0.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TAST is destroying value.
The number of shares outstanding for TAST has been increased compared to 1 year ago.
Compared to 5 years ago, TAST has more shares outstanding
TAST has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.38, we must say that TAST is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.38, TAST perfoms like the industry average, outperforming 42.54% of the companies in the same industry.
The Debt to FCF ratio of TAST is 5.07, which is a neutral value as it means it would take TAST, 5.07 years of fcf income to pay off all of its debts.
TAST's Debt to FCF ratio of 5.07 is fine compared to the rest of the industry. TAST outperforms 74.63% of its industry peers.
A Debt/Equity ratio of 2.28 is on the high side and indicates that TAST has dependencies on debt financing.
With a Debt to Equity ratio value of 2.28, TAST perfoms like the industry average, outperforming 49.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.48
WACC9.26%
2.3 Liquidity
TAST has a Current Ratio of 0.49. This is a bad value and indicates that TAST is not financially healthy enough and could expect problems in meeting its short term obligations.
TAST has a worse Current ratio (0.49) than 77.61% of its industry peers.
A Quick Ratio of 0.41 indicates that TAST may have some problems paying its short term obligations.
With a Quick ratio value of 0.41, TAST is not doing good in the industry: 77.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 173.24% over the past year.
The Earnings Per Share has been growing by 13.18% on average over the past years. This is quite good.
TAST shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.44%.
TAST shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.73% yearly.
EPS 1Y (TTM)173.24%
EPS 3YN/A
EPS 5Y13.18%
EPS growth Q2Q280%
Revenue 1Y (TTM)8.44%
Revenue growth 3Y6.64%
Revenue growth 5Y9.73%
Revenue growth Q2Q5.67%
3.2 Future
The Earnings Per Share is expected to grow by 4.34% on average over the next years.
The Revenue is expected to grow by 1.38% on average over the next years.
EPS Next Y10.83%
EPS Next 2Y4.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.76%
Revenue Next 2Y2.88%
Revenue Next 3Y-0.54%
Revenue Next 5Y1.38%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.29, which indicates a rather expensive current valuation of TAST.
Compared to the rest of the industry, the Price/Earnings ratio of TAST indicates a somewhat cheap valuation: TAST is cheaper than 73.13% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.92, TAST is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.50, which indicates a correct valuation of TAST.
Based on the Price/Forward Earnings ratio, TAST is valued a bit cheaper than 70.90% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TAST to the average of the S&P500 Index (21.49), we can say TAST is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.29 | ||
| Fwd PE | 16.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TAST is valued cheaply inside the industry as 85.07% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TAST is valued cheaply inside the industry as 97.01% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.18 | ||
| EV/EBITDA | 6.31 |
4.3 Compensation for Growth
TAST's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.69
PEG (5Y)1.39
EPS Next 2Y4.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, TAST is not a good candidate for dividend investing.
TAST's Dividend Yield is a higher than the industry average which is at 2.62.
Compared to an average S&P500 Dividend Yield of 2.43, TAST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
TAST has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
TAST pays out 3.77% of its income as dividend. This is a sustainable payout ratio.
DP3.77%
EPS Next 2Y4.34%
EPS Next 3YN/A
CARROLS RESTAURANT GROUP INC
NASDAQ:TAST (4/26/2024, 7:18:39 PM)
After market: 9.51 0 (0%)9.51
0 (0%)
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 Cap522.38M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.29 | ||
| Fwd PE | 16.5 | ||
| 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)1.69
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.13% | ||
| ROE | 18.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.7% | ||
| PM (TTM) | 1.81% | ||
| GM | 39.74% | ||
| 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 Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.41 | ||
| 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)173.24%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y10.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.44%
Revenue growth 3Y6.64%
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