DARDEN RESTAURANTS INC (DRI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DRI - US2371941053 - Common Stock
184.02 USD
-0.93 (-0.5%)
184.02 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to DRI. DRI was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. DRI scores excellent on profitability, 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.
Each year in the past 5 years DRI has been profitable.
In the past 5 years DRI always reported a positive cash flow from operatings.
1.2 Ratios
DRI has a Return On Assets of 8.67%. This is in the better half of the industry: DRI outperforms 79.70% of its industry peers.
The Return On Equity of DRI (53.94%) is better than 90.98% of its industry peers.
DRI's Return On Invested Capital of 12.02% is fine compared to the rest of the industry. DRI outperforms 77.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DRI is above the industry average of 10.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.67% | ||
| ROE | 53.94% | ||
| ROIC | 12.02% |
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 better Profit Margin (8.92%) than 70.68% of its industry peers.
DRI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.64%, DRI is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
DRI's Operating Margin has improved in the last couple of years.
DRI has a Gross Margin of 21.63%. This is amonst the worse of the industry: DRI underperforms 84.96% of its industry peers.
In the last couple of years the Gross Margin of DRI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.64% | ||
| PM (TTM) | 8.92% | ||
| GM | 21.63% |
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.
The number of shares outstanding for DRI has been reduced compared to 1 year ago.
Compared to 5 years ago, DRI has less shares outstanding
DRI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.36 indicates that DRI is not a great score, but indicates only limited risk for bankruptcy at the moment.
DRI has a better Altman-Z score (2.36) than 64.66% of its industry peers.
DRI has a debt to FCF ratio of 2.67. This is a good value and a sign of high solvency as DRI would need 2.67 years to pay back of all of its debts.
DRI has a better Debt to FCF ratio (2.67) than 82.71% of its industry peers.
A Debt/Equity ratio of 1.24 is on the high side and indicates that DRI has dependencies on debt financing.
The Debt to Equity ratio of DRI (1.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.36 |
ROIC/WACC1.42
WACC8.48%
2.3 Liquidity
A Current Ratio of 0.39 indicates that DRI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.39, DRI is doing worse than 81.95% of the companies in the same industry.
A Quick Ratio of 0.26 indicates that DRI may have some problems paying its short term obligations.
DRI has a worse Quick ratio (0.26) than 87.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.62% over the past year.
DRI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.78% yearly.
Looking at the last year, DRI shows a quite strong growth in Revenue. The Revenue has grown by 8.61% in the last year.
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)8.62%
EPS 3Y8.81%
EPS 5Y24.78%
EPS Q2Q%2.46%
Revenue 1Y (TTM)8.61%
Revenue growth 3Y7.84%
Revenue growth 5Y9.12%
Sales Q2Q%7.34%
3.2 Future
The Earnings Per Share is expected to grow by 8.68% on average over the next years. This is quite good.
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 Y11.76%
EPS Next 2Y9.62%
EPS Next 3Y9.63%
EPS Next 5Y8.68%
Revenue Next Year8.84%
Revenue Next 2Y6.39%
Revenue Next 3Y6.07%
Revenue Next 5Y5.58%
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 decreasing.
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 18.72, which indicates a rather expensive current valuation of DRI.
Based on the Price/Earnings ratio, DRI is valued a bit cheaper than 73.68% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. DRI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.02, which indicates a correct valuation of DRI.
Based on the Price/Forward Earnings ratio, DRI is valued a bit cheaper than the industry average as 72.93% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DRI to the average of the S&P500 Index (23.13), we can say DRI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 16.02 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DRI.
69.17% of the companies in the same industry are more expensive than DRI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.13 | ||
| EV/EBITDA | 11.69 |
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)1.59
PEG (5Y)0.76
EPS Next 2Y9.62%
EPS Next 3Y9.63%
5. Dividend
5.1 Amount
DRI has a Yearly Dividend Yield of 3.11%.
DRI's Dividend Yield is rather good when compared to the industry average which is at 1.66. DRI pays more dividend than 88.72% of the companies in the same industry.
DRI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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.
DRI has decreased its dividend recently.
Dividend Growth(5Y)16.99%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DRI pays out 60.33% of its income as dividend. This is not a sustainable payout ratio.
The dividend of DRI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.33%
EPS Next 2Y9.62%
EPS Next 3Y9.63%
184.02
-0.93 (-0.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners94.67%
Inst Owner Change-3.58%
Ins Owners0.28%
Ins Owner Change9.94%
Market Cap21.40B
Revenue(TTM)12.58B
Net Income(TTM)1.12B
Analysts77.3
Price Target223.78 (21.61%)
Short Float %3.2%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
Yearly Dividend5.58
Dividend Growth(5Y)16.99%
DP60.33%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.3%
Min EPS beat(2)-2.55%
Max EPS beat(2)-2.05%
EPS beat(4)0
Avg EPS beat(4)-1.53%
Min EPS beat(4)-2.55%
Max EPS beat(4)-0.66%
EPS beat(8)1
Avg EPS beat(8)-1.59%
EPS beat(12)5
Avg EPS beat(12)-0.23%
EPS beat(16)7
Avg EPS beat(16)-0.57%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-1.52%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)4
Avg Revenue beat(16)-1.03%
PT rev (1m)-0.64%
PT rev (3m)-5.58%
EPS NQ rev (1m)-1.9%
EPS NQ rev (3m)-1.87%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-0.49%
Revenue NQ rev (1m)0.84%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 16.02 | ||
| P/S | 1.7 | ||
| P/FCF | 22.13 | ||
| P/OCF | 12.59 | ||
| P/B | 10.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.69 |
EPS(TTM)9.83
EY5.34%
EPS(NY)11.49
Fwd EY6.24%
FCF(TTM)8.31
FCFY4.52%
OCF(TTM)14.61
OCFY7.94%
SpS108.13
BVpS17.89
TBVpS-7.95
PEG (NY)1.59
PEG (5Y)0.76
Graham Number62.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.67% | ||
| ROE | 53.94% | ||
| ROCE | 14.23% | ||
| ROIC | 12.02% | ||
| ROICexc | 12.28% | ||
| ROICexgc | 17.2% | ||
| OM | 11.64% | ||
| PM (TTM) | 8.92% | ||
| GM | 21.63% | ||
| FCFM | 7.69% |
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-Score9
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 2.67 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 135.69% | ||
| Cap/Sales | 5.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.82% | ||
| Profit Quality | 86.17% | ||
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 2.36 |
F-Score9
WACC8.48%
ROIC/WACC1.42
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)8.62%
EPS 3Y8.81%
EPS 5Y24.78%
EPS Q2Q%2.46%
EPS Next Y11.76%
EPS Next 2Y9.62%
EPS Next 3Y9.63%
EPS Next 5Y8.68%
Revenue 1Y (TTM)8.61%
Revenue growth 3Y7.84%
Revenue growth 5Y9.12%
Sales Q2Q%7.34%
Revenue Next Year8.84%
Revenue Next 2Y6.39%
Revenue Next 3Y6.07%
Revenue Next 5Y5.58%
EBIT growth 1Y8.14%
EBIT growth 3Y6.75%
EBIT growth 5Y26.36%
EBIT Next Year47.9%
EBIT Next 3Y17.97%
EBIT Next 5Y12.43%
FCF growth 1Y8.15%
FCF growth 3Y6.34%
FCF growth 5Y35.25%
OCF growth 1Y11.89%
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.
Can you provide the valuation status for DARDEN RESTAURANTS INC?
ChartMill assigns a valuation rating of 5 / 10 to DARDEN RESTAURANTS INC (DRI). This can be considered as Fairly Valued.
How profitable is DARDEN RESTAURANTS INC (DRI) stock?
DARDEN RESTAURANTS INC (DRI) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for DRI stock?
The Price/Earnings (PE) ratio for DARDEN RESTAURANTS INC (DRI) is 18.72 and the Price/Book (PB) ratio is 10.29.
Is the dividend of DARDEN RESTAURANTS INC sustainable?
The dividend rating of DARDEN RESTAURANTS INC (DRI) is 5 / 10 and the dividend payout ratio is 60.33%.