DARDEN RESTAURANTS INC (DRI) Stock Fundamental Analysis
USA - NYSE:DRI - US2371941053 - Common Stock
173.83 USD
-1.59 (-0.91%)
173.83 USD
0 (0%)
Taking everything into account, DRI scores 5 out of 10 in our fundamental rating. DRI was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. DRI has an excellent profitability rating, but there are some minor concerns on its financial health. DRI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year DRI was profitable.
In the past year DRI had a positive cash flow from operations.
DRI had positive earnings in each of the past 5 years.
DRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DRI has a better Return On Assets (8.62%) than 81.82% of its industry peers.
With an excellent Return On Equity value of 49.43%, DRI belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
DRI has a better Return On Invested Capital (12.01%) than 77.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DRI is in line with the industry average of 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 49.43% | ||
| ROIC | 12.01% |
ROA(3y)9%
ROA(5y)8.46%
ROE(3y)45.28%
ROE(5y)40.31%
ROIC(3y)12.45%
ROIC(5y)11.32%
1.3 Margins
DRI has a Profit Margin of 8.90%. This is in the better half of the industry: DRI outperforms 70.45% of its industry peers.
In the last couple of years the Profit Margin of DRI has declined.
DRI has a better Operating Margin (11.63%) than 62.88% of its industry peers.
In the last couple of years the Operating Margin of DRI has grown nicely.
DRI has a Gross Margin of 21.86%. This is amonst the worse of the industry: DRI underperforms 85.61% of its industry peers.
In the last couple of years the Gross Margin of DRI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.63% | ||
| PM (TTM) | 8.9% | ||
| GM | 21.86% |
OM growth 3Y-1.01%
OM growth 5Y15.81%
PM growth 3Y-4.23%
PM growth 5YN/A
GM growth 3Y1.84%
GM growth 5Y3.94%
2. Health
2.1 Basic Checks
DRI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DRI has less shares outstanding than it did 1 year ago.
DRI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DRI is higher compared to a year ago.
2.2 Solvency
DRI has an Altman-Z score of 2.36. This is not the best score and indicates that DRI is in the grey zone with still only limited risk for bankruptcy at the moment.
DRI has a better Altman-Z score (2.36) than 65.91% of its industry peers.
DRI has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as DRI would need 3.68 years to pay back of all of its debts.
DRI has a better Debt to FCF ratio (3.68) than 78.79% of its industry peers.
A Debt/Equity ratio of 1.76 is on the high side and indicates that DRI has dependencies on debt financing.
DRI has a Debt to Equity ratio of 1.76. This is comparable to the rest of the industry: DRI outperforms 53.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.36 |
ROIC/WACC1.47
WACC8.17%
2.3 Liquidity
DRI has a Current Ratio of 0.40. This is a bad value and indicates that DRI is not financially healthy enough and could expect problems in meeting its short term obligations.
DRI has a worse Current ratio (0.40) than 82.58% of its industry peers.
A Quick Ratio of 0.27 indicates that DRI may have some problems paying its short term obligations.
The Quick ratio of DRI (0.27) is worse than 88.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.38% over the past year.
The Earnings Per Share has been growing by 24.78% on average over the past years. This is a very strong growth
DRI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.30%.
Measured over the past years, DRI shows a quite strong growth in Revenue. The Revenue has been growing by 9.12% on average per year.
EPS 1Y (TTM)10.38%
EPS 3Y8.81%
EPS 5Y24.78%
EPS Q2Q%12.57%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y7.84%
Revenue growth 5Y9.12%
Sales Q2Q%10.44%
3.2 Future
DRI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.68% yearly.
Based on estimates for the next years, DRI will show a small growth in Revenue. The Revenue will grow by 5.58% on average per year.
EPS Next Y12.19%
EPS Next 2Y9.71%
EPS Next 3Y9.68%
EPS Next 5Y8.68%
Revenue Next Year8.27%
Revenue Next 2Y5.99%
Revenue Next 3Y5.81%
Revenue Next 5Y5.58%
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
Based on the Price/Earnings ratio of 17.77, the valuation of DRI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of DRI indicates a somewhat cheap valuation: DRI is cheaper than 72.73% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DRI to the average of the S&P500 Index (25.89), we can say DRI is valued slightly cheaper.
DRI is valuated correctly with a Price/Forward Earnings ratio of 15.11.
DRI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DRI is cheaper than 71.97% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, DRI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 15.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRI is on the same level as its industry peers.
DRI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DRI is cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.93 | ||
| EV/EBITDA | 12.18 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of DRI may justify a higher PE ratio.
PEG (NY)1.46
PEG (5Y)0.72
EPS Next 2Y9.71%
EPS Next 3Y9.68%
5. Dividend
5.1 Amount
DRI has a Yearly Dividend Yield of 3.27%.
Compared to an average industry Dividend Yield of 4.57, DRI pays a better dividend. On top of this DRI pays more dividend than 86.36% of the companies listed in the same industry.
DRI's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
5.2 History
The dividend of DRI is nicely growing with an annual growth rate of 16.99%!
DRI has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of DRI decreased recently.
Dividend Growth(5Y)16.99%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DRI pays out 60.69% of its income as dividend. This is not a sustainable payout ratio.
DRI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.69%
EPS Next 2Y9.71%
EPS Next 3Y9.68%
173.83
-1.59 (-0.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners95.22%
Inst Owner Change-2.33%
Ins Owners0.28%
Ins Owner Change8.85%
Market Cap20.22B
Revenue(TTM)12.36B
Net Income(TTM)1.10B
Analysts76.84
Price Target226.24 (30.15%)
Short Float %2.89%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
Yearly Dividend5.58
Dividend Growth(5Y)16.99%
DP60.69%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.61%
Min EPS beat(2)-2.55%
Max EPS beat(2)-0.66%
EPS beat(4)0
Avg EPS beat(4)-1.12%
Min EPS beat(4)-2.55%
Max EPS beat(4)-0.42%
EPS beat(8)2
Avg EPS beat(8)-0.71%
EPS beat(12)6
Avg EPS beat(12)0.34%
EPS beat(16)8
Avg EPS beat(16)-0.28%
Revenue beat(2)0
Avg Revenue beat(2)-0.75%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)-0.68%
Revenue beat(4)0
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)-0.68%
Revenue beat(8)0
Avg Revenue beat(8)-1.7%
Revenue beat(12)2
Avg Revenue beat(12)-1.05%
Revenue beat(16)4
Avg Revenue beat(16)-0.97%
PT rev (1m)-0.56%
PT rev (3m)-4.64%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)-4.46%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-0.66%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 15.11 | ||
| P/S | 1.64 | ||
| P/FCF | 18.93 | ||
| P/OCF | 11.44 | ||
| P/B | 9.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.18 |
EPS(TTM)9.78
EY5.63%
EPS(NY)11.51
Fwd EY6.62%
FCF(TTM)9.18
FCFY5.28%
OCF(TTM)15.2
OCFY8.74%
SpS106.31
BVpS19.14
TBVpS-6.7
PEG (NY)1.46
PEG (5Y)0.72
Graham Number64.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 49.43% | ||
| ROCE | 13.81% | ||
| ROIC | 12.01% | ||
| ROICexc | 12.25% | ||
| ROICexgc | 17.27% | ||
| OM | 11.63% | ||
| PM (TTM) | 8.9% | ||
| GM | 21.86% | ||
| FCFM | 8.64% |
ROA(3y)9%
ROA(5y)8.46%
ROE(3y)45.28%
ROE(5y)40.31%
ROIC(3y)12.45%
ROIC(5y)11.32%
ROICexc(3y)12.83%
ROICexc(5y)11.9%
ROICexgc(3y)17.84%
ROICexgc(5y)16.28%
ROCE(3y)14.18%
ROCE(5y)12.88%
ROICexgc growth 3Y1.15%
ROICexgc growth 5Y21.42%
ROICexc growth 3Y-1.77%
ROICexc growth 5Y19.57%
OM growth 3Y-1.01%
OM growth 5Y15.81%
PM growth 3Y-4.23%
PM growth 5YN/A
GM growth 3Y1.84%
GM growth 5Y3.94%
F-Score6
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 132.15% | ||
| Cap/Sales | 5.66% | ||
| Interest Coverage | 8.46 | ||
| Cash Conversion | 89.82% | ||
| Profit Quality | 97.06% | ||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 2.36 |
F-Score6
WACC8.17%
ROIC/WACC1.47
Cap/Depr(3y)140.02%
Cap/Depr(5y)121.27%
Cap/Sales(3y)5.58%
Cap/Sales(5y)4.94%
Profit Quality(3y)96.8%
Profit Quality(5y)105.36%
High Growth Momentum
Growth
EPS 1Y (TTM)10.38%
EPS 3Y8.81%
EPS 5Y24.78%
EPS Q2Q%12.57%
EPS Next Y12.19%
EPS Next 2Y9.71%
EPS Next 3Y9.68%
EPS Next 5Y8.68%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y7.84%
Revenue growth 5Y9.12%
Sales Q2Q%10.44%
Revenue Next Year8.27%
Revenue Next 2Y5.99%
Revenue Next 3Y5.81%
Revenue Next 5Y5.58%
EBIT growth 1Y5.74%
EBIT growth 3Y6.75%
EBIT growth 5Y26.36%
EBIT Next Year48.65%
EBIT Next 3Y17.93%
EBIT Next 5Y12.43%
FCF growth 1Y39.47%
FCF growth 3Y6.34%
FCF growth 5Y35.25%
OCF growth 1Y27.42%
OCF growth 3Y10.58%
OCF growth 5Y19.02%
DARDEN RESTAURANTS INC / DRI FAQ
Can you provide the ChartMill fundamental rating for DARDEN RESTAURANTS INC?
ChartMill assigns a fundamental rating of 5 / 10 to DRI.
What is the valuation status of DARDEN RESTAURANTS INC (DRI) stock?
ChartMill assigns a valuation rating of 5 / 10 to DARDEN RESTAURANTS INC (DRI). This can be considered as Fairly Valued.
Can you provide the profitability details for DARDEN RESTAURANTS INC?
DARDEN RESTAURANTS INC (DRI) has a profitability rating of 7 / 10.
What is the valuation of DARDEN RESTAURANTS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DARDEN RESTAURANTS INC (DRI) is 17.77 and the Price/Book (PB) ratio is 9.08.
How financially healthy is DARDEN RESTAURANTS INC?
The financial health rating of DARDEN RESTAURANTS INC (DRI) is 4 / 10.