DINE BRANDS GLOBAL INC (DIN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DIN - US2544231069 - Common Stock
34.44 USD
+0.4 (+1.18%)
DIN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of DIN get a neutral evaluation. Nothing too spectacular is happening here. DIN is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- DIN had positive earnings in the past year.
- In the past year DIN had a positive cash flow from operations.
- Of the past 5 years DIN 4 years were profitable.
- Each year in the past 5 years DIN had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 1.86%, DIN perfoms like the industry average, outperforming 49.24% of the companies in the same industry.
- The Return On Invested Capital of DIN (7.61%) is better than 63.64% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DIN is in line with the industry average of 10.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.86% | ||
| ROE | N/A | ||
| ROIC | 7.61% |
ROA(3y)4.39%
ROA(5y)2.58%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.53%
ROIC(5y)9.11%
1.3 Margins
- Looking at the Profit Margin, with a value of 3.82%, DIN is in line with its industry, outperforming 56.06% of the companies in the same industry.
- DIN's Profit Margin has declined in the last couple of years.
- DIN has a better Operating Margin (15.79%) than 70.45% of its industry peers.
- In the last couple of years the Operating Margin of DIN has declined.
- DIN has a worse Gross Margin (40.67%) than 61.36% of its industry peers.
- In the last couple of years the Gross Margin of DIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.79% | ||
| PM (TTM) | 3.82% | ||
| GM | 40.67% |
OM growth 3Y-1.33%
OM growth 5Y-2.03%
PM growth 3Y-10.09%
PM growth 5Y-6.88%
GM growth 3Y3.34%
GM growth 5Y1.9%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DIN is creating some value.
- Compared to 1 year ago, DIN has less shares outstanding
- The number of shares outstanding for DIN has been reduced compared to 5 years ago.
- The debt/assets ratio for DIN has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.05, we must say that DIN is in the distress zone and has some risk of bankruptcy.
- DIN has a Altman-Z score of 1.05. This is in the lower half of the industry: DIN underperforms 60.61% of its industry peers.
- DIN has a debt to FCF ratio of 14.09. This is a negative value and a sign of low solvency as DIN would need 14.09 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 14.09, DIN is in line with its industry, outperforming 53.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.09 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.95
WACC8.01%
2.3 Liquidity
- DIN has a Current Ratio of 1.05. This is a normal value and indicates that DIN is financially healthy and should not expect problems in meeting its short term obligations.
- DIN has a Current ratio of 1.05. This is comparable to the rest of the industry: DIN outperforms 55.30% of its industry peers.
- A Quick Ratio of 1.05 indicates that DIN should not have too much problems paying its short term obligations.
- DIN's Quick ratio of 1.05 is fine compared to the rest of the industry. DIN outperforms 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
- DIN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.37%.
- The Earnings Per Share has been decreasing by -5.07% on average over the past years.
- DIN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.47%.
- The Revenue has been decreasing by -2.25% on average over the past years.
EPS 1Y (TTM)-35.37%
EPS 3Y-6.57%
EPS 5Y-5.07%
EPS Q2Q%-49.31%
Revenue 1Y (TTM)6.47%
Revenue growth 3Y-3.22%
Revenue growth 5Y-2.25%
Sales Q2Q%10.84%
3.2 Future
- Based on estimates for the next years, DIN will show a decrease in Earnings Per Share. The EPS will decrease by -1.45% on average per year.
- Based on estimates for the next years, DIN will show a small growth in Revenue. The Revenue will grow by 4.21% on average per year.
EPS Next Y-24.23%
EPS Next 2Y-4.57%
EPS Next 3Y-1.45%
EPS Next 5YN/A
Revenue Next Year10.16%
Revenue Next 2Y6.1%
Revenue Next 3Y4.21%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- The Price/Earnings ratio is 9.06, which indicates a very decent valuation of DIN.
- Compared to the rest of the industry, the Price/Earnings ratio of DIN indicates a rather cheap valuation: DIN is cheaper than 93.18% of the companies listed in the same industry.
- DIN is valuated cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- DIN is valuated cheaply with a Price/Forward Earnings ratio of 7.07.
- 96.97% of the companies in the same industry are more expensive than DIN, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, DIN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 7.07 |
4.2 Price Multiples
- 73.48% of the companies in the same industry are more expensive than DIN, based on the Enterprise Value to EBITDA ratio.
- 99.24% of the companies in the same industry are more expensive than DIN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.6 | ||
| EV/EBITDA | 8.82 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.57%
EPS Next 3Y-1.45%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.16%, DIN has a reasonable but not impressive dividend return.
- DIN's Dividend Yield is rather good when compared to the industry average which is at 1.21. DIN pays more dividend than 81.82% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, DIN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
- The dividend of DIN decreases each year by -5.76%.
- DIN has paid a dividend for at least 10 years, which is a reliable track record.
- DIN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-5.76%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- 94.97% of the earnings are spent on dividend by DIN. This is not a sustainable payout ratio.
- DIN's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP94.97%
EPS Next 2Y-4.57%
EPS Next 3Y-1.45%
DINE BRANDS GLOBAL INC / DIN FAQ
What is the fundamental rating for DIN stock?
ChartMill assigns a fundamental rating of 4 / 10 to DIN.
What is the valuation status for DIN stock?
ChartMill assigns a valuation rating of 7 / 10 to DINE BRANDS GLOBAL INC (DIN). This can be considered as Undervalued.
How profitable is DINE BRANDS GLOBAL INC (DIN) stock?
DINE BRANDS GLOBAL INC (DIN) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for DIN stock?
The Price/Earnings (PE) ratio for DINE BRANDS GLOBAL INC (DIN) is 9.06 and the Price/Book (PB) ratio is -2.14.
Can you provide the financial health for DIN stock?
The financial health rating of DINE BRANDS GLOBAL INC (DIN) is 4 / 10.