BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
USA - NYSE:EAT - US1096411004 - Common Stock
136.35 USD
-2.52 (-1.81%)
136 USD
-0.35 (-0.26%)
Taking everything into account, EAT scores 7 out of 10 in our fundamental rating. EAT was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. EAT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. EAT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, EAT could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year EAT was profitable.
EAT had a positive operating cash flow in the past year.
Each year in the past 5 years EAT has been profitable.
In the past 5 years EAT always reported a positive cash flow from operatings.
1.2 Ratios
EAT has a better Return On Assets (14.30%) than 91.73% of its industry peers.
EAT has a Return On Equity of 103.29%. This is amongst the best in the industry. EAT outperforms 96.99% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.53%, EAT belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EAT is in line with the industry average of 15.68%.
The last Return On Invested Capital (24.53%) for EAT is above the 3 year average (14.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.3% | ||
| ROE | 103.29% | ||
| ROIC | 24.53% |
ROA(3y)8.14%
ROA(5y)6.99%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.96%
ROIC(5y)13%
1.3 Margins
With a decent Profit Margin value of 7.12%, EAT is doing good in the industry, outperforming 62.41% of the companies in the same industry.
In the last couple of years the Profit Margin of EAT has grown nicely.
The Operating Margin of EAT (10.29%) is comparable to the rest of the industry.
EAT's Operating Margin has improved in the last couple of years.
EAT has a Gross Margin of 18.25%. This is amonst the worse of the industry: EAT underperforms 88.72% of its industry peers.
EAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.29% | ||
| PM (TTM) | 7.12% | ||
| GM | 18.25% |
OM growth 3Y27.07%
OM growth 5Y23.55%
PM growth 3Y32.03%
PM growth 5Y55.11%
GM growth 3Y14.09%
GM growth 5Y4.9%
2. Health
2.1 Basic Checks
EAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, EAT has less shares outstanding
Compared to 5 years ago, EAT has less shares outstanding
The debt/assets ratio for EAT has been reduced compared to a year ago.
2.2 Solvency
EAT has an Altman-Z score of 4.19. This indicates that EAT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.19, EAT belongs to the top of the industry, outperforming 82.71% of the companies in the same industry.
The Debt to FCF ratio of EAT is 1.07, which is an excellent value as it means it would take EAT, only 1.07 years of fcf income to pay off all of its debts.
EAT has a Debt to FCF ratio of 1.07. This is amongst the best in the industry. EAT outperforms 89.47% of its industry peers.
EAT has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
EAT's Debt to Equity ratio of 1.15 is in line compared to the rest of the industry. EAT outperforms 59.40% of its industry peers.
Even though the debt/equity ratio score it not favorable for EAT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 4.19 |
ROIC/WACC2.65
WACC9.26%
2.3 Liquidity
EAT has a Current Ratio of 0.31. This is a bad value and indicates that EAT is not financially healthy enough and could expect problems in meeting its short term obligations.
EAT has a Current ratio of 0.31. This is amonst the worse of the industry: EAT underperforms 89.47% of its industry peers.
A Quick Ratio of 0.25 indicates that EAT may have some problems paying its short term obligations.
With a Quick ratio value of 0.25, EAT is not doing good in the industry: 90.23% of the companies in the same industry are doing better.
The current and quick ratio evaluation for EAT is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 116.02% over the past year.
Measured over the past years, EAT shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.36% on average per year.
EAT shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.95%.
Measured over the past years, EAT shows a quite strong growth in Revenue. The Revenue has been growing by 11.83% on average per year.
EPS 1Y (TTM)116.02%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%54.66%
Revenue 1Y (TTM)21.95%
Revenue growth 3Y12.28%
Revenue growth 5Y11.83%
Sales Q2Q%21%
3.2 Future
The Earnings Per Share is expected to grow by 13.20% on average over the next years. This is quite good.
EAT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.49% yearly.
EPS Next Y17.13%
EPS Next 2Y15.33%
EPS Next 3Y13.2%
EPS Next 5YN/A
Revenue Next Year6.2%
Revenue Next 2Y5.64%
Revenue Next 3Y4.77%
Revenue Next 5Y-3.49%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.32, the valuation of EAT can be described as correct.
79.70% of the companies in the same industry are more expensive than EAT, based on the Price/Earnings ratio.
EAT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
With a Price/Forward Earnings ratio of 13.08, EAT is valued correctly.
EAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EAT is cheaper than 78.20% of the companies in the same industry.
EAT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.32 | ||
| Fwd PE | 13.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EAT is valued a bit cheaper than 75.94% of the companies in the same industry.
82.71% of the companies in the same industry are more expensive than EAT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.67 | ||
| EV/EBITDA | 8.69 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EAT has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as EAT's earnings are expected to grow with 13.20% in the coming years.
PEG (NY)0.89
PEG (5Y)0.41
EPS Next 2Y15.33%
EPS Next 3Y13.2%
5. Dividend
5.1 Amount
No dividends for EAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
136.35
-2.52 (-1.81%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners105.34%
Inst Owner Change3.95%
Ins Owners1.42%
Ins Owner Change-0.09%
Market Cap6.07B
Analysts70.83
Price Target181.44 (33.07%)
Short Float %12.2%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.77%
Min EPS beat(2)0.67%
Max EPS beat(2)2.88%
EPS beat(4)4
Avg EPS beat(4)23.21%
Min EPS beat(4)0.67%
Max EPS beat(4)52.02%
EPS beat(8)7
Avg EPS beat(8)59.99%
EPS beat(12)11
Avg EPS beat(12)44.77%
EPS beat(16)12
Avg EPS beat(16)31.91%
Revenue beat(2)2
Avg Revenue beat(2)1.13%
Min Revenue beat(2)0.68%
Max Revenue beat(2)1.58%
Revenue beat(4)4
Avg Revenue beat(4)3.31%
Min Revenue beat(4)0.68%
Max Revenue beat(4)8.48%
Revenue beat(8)5
Avg Revenue beat(8)1.61%
Revenue beat(12)7
Avg Revenue beat(12)1.2%
Revenue beat(16)7
Avg Revenue beat(16)0.68%
PT rev (1m)3.64%
PT rev (3m)8.7%
EPS NQ rev (1m)12.54%
EPS NQ rev (3m)18.61%
EPS NY rev (1m)4.91%
EPS NY rev (3m)5.72%
Revenue NQ rev (1m)1.83%
Revenue NQ rev (3m)3.81%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)1.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.32 | ||
| Fwd PE | 13.08 | ||
| P/S | 1.13 | ||
| P/FCF | 14.67 | ||
| P/OCF | 8.94 | ||
| P/B | 16.36 | ||
| P/tB | 38.21 | ||
| EV/EBITDA | 8.69 |
EPS(TTM)8.9
EY6.53%
EPS(NY)10.42
Fwd EY7.65%
FCF(TTM)9.3
FCFY6.82%
OCF(TTM)15.26
OCFY11.19%
SpS120.99
BVpS8.33
TBVpS3.57
PEG (NY)0.89
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.3% | ||
| ROE | 103.29% | ||
| ROCE | 27.65% | ||
| ROIC | 24.53% | ||
| ROICexc | 24.77% | ||
| ROICexgc | 27.73% | ||
| OM | 10.29% | ||
| PM (TTM) | 7.12% | ||
| GM | 18.25% | ||
| FCFM | 7.68% |
ROA(3y)8.14%
ROA(5y)6.99%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.96%
ROIC(5y)13%
ROICexc(3y)15.19%
ROICexc(5y)13.19%
ROICexgc(3y)17.06%
ROICexgc(5y)14.88%
ROCE(3y)16.86%
ROCE(5y)14.66%
ROICexcg growth 3Y40.45%
ROICexcg growth 5Y35.43%
ROICexc growth 3Y40.94%
ROICexc growth 5Y35.71%
OM growth 3Y27.07%
OM growth 5Y23.55%
PM growth 3Y32.03%
PM growth 5Y55.11%
GM growth 3Y14.09%
GM growth 5Y4.9%
F-Score8
Asset Turnover2.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | 128.41% | ||
| Cap/Sales | 4.93% | ||
| Interest Coverage | 10.05 | ||
| Cash Conversion | 89.3% | ||
| Profit Quality | 107.99% | ||
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 4.19 |
F-Score8
WACC9.26%
ROIC/WACC2.65
Cap/Depr(3y)118.2%
Cap/Depr(5y)101.72%
Cap/Sales(3y)4.64%
Cap/Sales(5y)4.13%
Profit Quality(3y)107.06%
Profit Quality(5y)123.46%
High Growth Momentum
Growth
EPS 1Y (TTM)116.02%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%54.66%
EPS Next Y17.13%
EPS Next 2Y15.33%
EPS Next 3Y13.2%
EPS Next 5YN/A
Revenue 1Y (TTM)21.95%
Revenue growth 3Y12.28%
Revenue growth 5Y11.83%
Sales Q2Q%21%
Revenue Next Year6.2%
Revenue Next 2Y5.64%
Revenue Next 3Y4.77%
Revenue Next 5Y-3.49%
EBIT growth 1Y102.78%
EBIT growth 3Y42.67%
EBIT growth 5Y38.16%
EBIT Next Year49.41%
EBIT Next 3Y19.84%
EBIT Next 5YN/A
FCF growth 1Y85.52%
FCF growth 3Y59.53%
FCF growth 5Y24.11%
OCF growth 1Y60.94%
OCF growth 3Y39.12%
OCF growth 5Y22.61%