BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EAT - US1096411004 - Common Stock
151.52 USD
+8 (+5.57%)
151.52 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to EAT. EAT was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. EAT has only an average score on both its financial health and profitability. EAT may be a bit undervalued, certainly considering the very reasonable score on growth This makes EAT very considerable for value 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.
EAT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years EAT had a positive operating cash flow.
1.2 Ratios
EAT has a Return On Assets of 11.97%. This is amongst the best in the industry. EAT outperforms 87.97% of its industry peers.
Looking at the Return On Equity, with a value of 94.42%, EAT belongs to the top of the industry, outperforming 93.98% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.64%, EAT belongs to the best of the industry, outperforming 84.96% of the companies in the same industry.
EAT had an Average Return On Invested Capital over the past 3 years of 2.53%. This is significantly below the industry average of 10.39%.
The last Return On Invested Capital (16.64%) for EAT is above the 3 year average (2.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 94.42% | ||
| ROIC | 16.64% |
ROA(3y)-1.3%
ROA(5y)1.33%
ROE(3y)-2.54%
ROE(5y)N/A
ROIC(3y)2.53%
ROIC(5y)5.11%
1.3 Margins
EAT's Profit Margin of 7.77% is fine compared to the rest of the industry. EAT outperforms 67.67% of its industry peers.
EAT's Profit Margin has declined in the last couple of years.
EAT has a Operating Margin (10.56%) which is in line with its industry peers.
EAT's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 18.50%, EAT is not doing good in the industry: 87.22% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of EAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.56% | ||
| PM (TTM) | 7.77% | ||
| GM | 18.5% |
OM growth 3Y-19.63%
OM growth 5Y-6.14%
PM growth 3Y-69.61%
PM growth 5Y-35.75%
GM growth 3Y25.02%
GM growth 5Y10.82%
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 more shares outstanding
The number of shares outstanding for EAT has been reduced compared to 5 years ago.
EAT has a worse debt/assets ratio than last year.
2.2 Solvency
EAT has an Altman-Z score of 3.66. This indicates that EAT is financially healthy and has little risk of bankruptcy at the moment.
EAT's Altman-Z score of 3.66 is amongst the best of the industry. EAT outperforms 83.46% of its industry peers.
The Debt to FCF ratio of EAT is 1.16, which is an excellent value as it means it would take EAT, only 1.16 years of fcf income to pay off all of its debts.
EAT has a Debt to FCF ratio of 1.16. This is amongst the best in the industry. EAT outperforms 90.23% of its industry peers.
A Debt/Equity ratio of 1.53 is on the high side and indicates that EAT has dependencies on debt financing.
EAT has a Debt to Equity ratio of 1.53. This is comparable to the rest of the industry: EAT outperforms 54.89% 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 | 1.53 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 3.66 |
ROIC/WACC1.89
WACC8.82%
2.3 Liquidity
EAT has a Current Ratio of 0.35. 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 worse Current ratio (0.35) than 85.71% of its industry peers.
A Quick Ratio of 0.29 indicates that EAT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.29, EAT is doing worse than 84.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 106.26% 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.
Looking at the last year, EAT shows a very strong growth in Revenue. The Revenue has grown by 81.56%.
EAT shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -63.21% yearly.
EPS 1Y (TTM)106.26%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%103.16%
Revenue 1Y (TTM)81.56%
Revenue growth 3Y-82.4%
Revenue growth 5Y-63.21%
Sales Q2Q%18.45%
3.2 Future
Based on estimates for the next years, EAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.99% on average per year.
The Revenue is expected to decrease by -3.49% on average over the next years.
EPS Next Y17.87%
EPS Next 2Y16.53%
EPS Next 3Y13.99%
EPS Next 5YN/A
Revenue Next Year7.27%
Revenue Next 2Y6.26%
Revenue Next 3Y5.26%
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.
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
EAT is valuated correctly with a Price/Earnings ratio of 15.34.
EAT's Price/Earnings ratio is a bit cheaper when compared to the industry. EAT is cheaper than 79.70% of the companies in the same industry.
EAT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
EAT is valuated correctly with a Price/Forward Earnings ratio of 12.54.
Based on the Price/Forward Earnings ratio, EAT is valued cheaply inside the industry as 83.46% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of EAT to the average of the S&P500 Index (23.23), we can say EAT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 12.54 |
4.2 Price Multiples
EAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EAT is cheaper than 65.41% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EAT is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.22 | ||
| EV/EBITDA | 9.85 |
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 a very decent 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 13.99% in the coming years.
PEG (NY)0.86
PEG (5Y)0.41
EPS Next 2Y16.53%
EPS Next 3Y13.99%
5. Dividend
5.1 Amount
EAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
151.52
+8 (+5.57%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners112.26%
Inst Owner Change2.45%
Ins Owners1.34%
Ins Owner Change2.13%
Market Cap6.73B
Revenue(TTM)4.18B
Net Income(TTM)324.72M
Analysts77.69
Price Target166.22 (9.7%)
Short Float %11.2%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)4.22%
Min EPS beat(2)0.67%
Max EPS beat(2)7.76%
EPS beat(4)4
Avg EPS beat(4)15.83%
Min EPS beat(4)0.67%
Max EPS beat(4)52.02%
EPS beat(8)7
Avg EPS beat(8)13%
EPS beat(12)11
Avg EPS beat(12)44.85%
EPS beat(16)13
Avg EPS beat(16)35.58%
Revenue beat(2)2
Avg Revenue beat(2)0.5%
Min Revenue beat(2)0.31%
Max Revenue beat(2)0.68%
Revenue beat(4)4
Avg Revenue beat(4)2.76%
Min Revenue beat(4)0.31%
Max Revenue beat(4)8.48%
Revenue beat(8)6
Avg Revenue beat(8)1.74%
Revenue beat(12)7
Avg Revenue beat(12)1.11%
Revenue beat(16)8
Avg Revenue beat(16)0.76%
PT rev (1m)2.89%
PT rev (3m)-8.39%
EPS NQ rev (1m)1%
EPS NQ rev (3m)-5.96%
EPS NY rev (1m)1.05%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 12.54 | ||
| P/S | 1.61 | ||
| P/FCF | 14.22 | ||
| P/OCF | 8.45 | ||
| P/B | 19.58 | ||
| P/tB | 50.85 | ||
| EV/EBITDA | 9.85 |
EPS(TTM)9.88
EY6.52%
EPS(NY)12.09
Fwd EY7.98%
FCF(TTM)10.66
FCFY7.03%
OCF(TTM)17.94
OCFY11.84%
SpS94.11
BVpS7.74
TBVpS2.98
PEG (NY)0.86
PEG (5Y)0.41
Graham Number41.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 94.42% | ||
| ROCE | 21.06% | ||
| ROIC | 16.64% | ||
| ROICexc | 16.91% | ||
| ROICexgc | 18.84% | ||
| OM | 10.56% | ||
| PM (TTM) | 7.77% | ||
| GM | 18.5% | ||
| FCFM | 11.32% |
ROA(3y)-1.3%
ROA(5y)1.33%
ROE(3y)-2.54%
ROE(5y)N/A
ROIC(3y)2.53%
ROIC(5y)5.11%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)3.21%
ROCE(5y)6.47%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-19.63%
OM growth 5Y-6.14%
PM growth 3Y-69.61%
PM growth 5Y-35.75%
GM growth 3Y25.02%
GM growth 5Y10.82%
F-Score5
Asset Turnover1.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 125.18% | ||
| Cap/Sales | 7.74% | ||
| Interest Coverage | 6.14 | ||
| Cash Conversion | 113.87% | ||
| Profit Quality | 145.82% | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 3.66 |
F-Score5
WACC8.82%
ROIC/WACC1.89
Cap/Depr(3y)14.03%
Cap/Depr(5y)39.22%
Cap/Sales(3y)1.14%
Cap/Sales(5y)2.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)106.26%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%103.16%
EPS Next Y17.87%
EPS Next 2Y16.53%
EPS Next 3Y13.99%
EPS Next 5YN/A
Revenue 1Y (TTM)81.56%
Revenue growth 3Y-82.4%
Revenue growth 5Y-63.21%
Sales Q2Q%18.45%
Revenue Next Year7.27%
Revenue Next 2Y6.26%
Revenue Next 3Y5.26%
Revenue Next 5Y-3.49%
EBIT growth 1Y170.46%
EBIT growth 3Y-85.85%
EBIT growth 5Y-65.47%
EBIT Next Year53.72%
EBIT Next 3Y20.04%
EBIT Next 5YN/A
FCF growth 1Y347.99%
FCF growth 3Y-71.42%
FCF growth 5Y-55.77%
OCF growth 1Y174.08%
OCF growth 3Y-77.72%
OCF growth 5Y-59.15%
BRINKER INTERNATIONAL INC / EAT FAQ
What is the fundamental rating for EAT stock?
ChartMill assigns a fundamental rating of 5 / 10 to EAT.
Can you provide the valuation status for BRINKER INTERNATIONAL INC?
ChartMill assigns a valuation rating of 7 / 10 to BRINKER INTERNATIONAL INC (EAT). This can be considered as Undervalued.
Can you provide the profitability details for BRINKER INTERNATIONAL INC?
BRINKER INTERNATIONAL INC (EAT) has a profitability rating of 6 / 10.
What are the PE and PB ratios of BRINKER INTERNATIONAL INC (EAT) stock?
The Price/Earnings (PE) ratio for BRINKER INTERNATIONAL INC (EAT) is 15.34 and the Price/Book (PB) ratio is 19.58.
How sustainable is the dividend of BRINKER INTERNATIONAL INC (EAT) stock?
The dividend rating of BRINKER INTERNATIONAL INC (EAT) is 0 / 10 and the dividend payout ratio is 0%.