BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
NYSE:EAT - New York Stock Exchange, Inc. - US1096411004 - Common Stock - Currency: USD
EAT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. EAT has an average financial health and profitability rating. EAT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
EAT had positive earnings in the past year.
EAT had a positive operating cash flow in the past year.
In the past 5 years EAT has always been profitable.
Each year in the past 5 years EAT had a positive operating cash flow.
1.2 Ratios
EAT has a better Return On Assets (12.95%) than 90.23% of its industry peers.
With an excellent Return On Equity value of 128.61%, EAT belongs to the best of the industry, outperforming 99.25% of the companies in the same industry.
With an excellent Return On Invested Capital value of 20.59%, EAT belongs to the best of the industry, outperforming 92.48% of the companies in the same industry.
EAT had an Average Return On Invested Capital over the past 3 years of 8.64%. This is significantly below the industry average of 13.81%.
The 3 year average ROIC (8.64%) for EAT is below the current ROIC(20.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.95% | ||
| ROE | 128.61% | ||
| ROIC | 20.59% |
ROA(3y)4.95%
ROA(5y)4.33%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.64%
ROIC(5y)8.15%
1.3 Margins
EAT has a Profit Margin of 6.49%. This is in the better half of the industry: EAT outperforms 60.90% of its industry peers.
In the last couple of years the Profit Margin of EAT has declined.
EAT has a Operating Margin (9.67%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of EAT has declined.
EAT has a worse Gross Margin (17.64%) than 88.72% of its industry peers.
EAT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.67% | ||
| PM (TTM) | 6.49% | ||
| GM | 17.64% |
OM growth 3Y-1.88%
OM growth 5Y-4.74%
PM growth 3Y-3.73%
PM growth 5Y-6.08%
GM growth 3Y2.6%
GM growth 5Y-6.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EAT is creating value.
The number of shares outstanding for EAT has been increased compared to 1 year ago.
The number of shares outstanding for EAT has been increased compared to 5 years ago.
The debt/assets ratio for EAT has been reduced compared to a year ago.
2.2 Solvency
EAT has an Altman-Z score of 4.53. This indicates that EAT is financially healthy and has little risk of bankruptcy at the moment.
EAT has a better Altman-Z score (4.53) than 86.47% of its industry peers.
EAT has a debt to FCF ratio of 1.38. This is a very positive value and a sign of high solvency as it would only need 1.38 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.38, EAT belongs to the top of the industry, outperforming 87.22% of the companies in the same industry.
EAT has a Debt/Equity ratio of 2.00. This is a high value indicating a heavy dependency on external financing.
EAT's Debt to Equity ratio of 2.00 is in line compared 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 | 2 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 4.53 |
ROIC/WACC2.42
WACC8.51%
2.3 Liquidity
A Current Ratio of 0.28 indicates that EAT may have some problems paying its short term obligations.
The Current ratio of EAT (0.28) is worse than 88.72% of its industry peers.
A Quick Ratio of 0.23 indicates that EAT may have some problems paying its short term obligations.
With a Quick ratio value of 0.23, EAT is not doing good in the industry: 92.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 105.64% over the past year.
The Earnings Per Share has been growing slightly by 0.69% on average over the past years.
The Revenue has grown by 19.80% in the past year. This is quite good.
The Revenue has been growing slightly by 6.53% on average over the past years.
EPS 1Y (TTM)105.64%
EPS 3Y10.06%
EPS 5Y0.69%
EPS Q2Q%114.52%
Revenue 1Y (TTM)19.8%
Revenue growth 3Y9.77%
Revenue growth 5Y6.53%
Sales Q2Q%26.13%
3.2 Future
The Earnings Per Share is expected to grow by 39.01% on average over the next years. This is a very strong growth
EAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.34% yearly.
EPS Next Y114.65%
EPS Next 2Y55.02%
EPS Next 3Y39.01%
EPS Next 5YN/A
Revenue Next Year22.13%
Revenue Next 2Y13.21%
Revenue Next 3Y10.51%
Revenue Next 5Y0.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 22.49, the valuation of EAT can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of EAT indicates a somewhat cheap valuation: EAT is cheaper than 67.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of EAT to the average of the S&P500 Index (27.15), we can say EAT is valued inline with the index average.
With a Price/Forward Earnings ratio of 18.21, EAT is valued on the expensive side.
EAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EAT is cheaper than 62.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EAT to the average of the S&P500 Index (21.60), we can say EAT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.49 | ||
| Fwd PE | 18.21 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EAT.
EAT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EAT is cheaper than 74.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.47 | ||
| EV/EBITDA | 12.38 |
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.
EAT's earnings are expected to grow with 39.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)32.41
EPS Next 2Y55.02%
EPS Next 3Y39.01%
5. Dividend
5.1 Amount
No dividends for EAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
180.33
+0.28 (+0.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners104.61%
Inst Owner Change-2.23%
Ins Owners1.48%
Ins Owner Change-4.11%
Market Cap8.02B
Analysts70.83
Price Target170.04 (-5.71%)
Short Float %13.42%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-68.87%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.45%
Min EPS beat(2)2.88%
Max EPS beat(2)52.02%
EPS beat(4)3
Avg EPS beat(4)21.22%
Min EPS beat(4)-7.3%
Max EPS beat(4)52.02%
EPS beat(8)7
Avg EPS beat(8)60.45%
EPS beat(12)10
Avg EPS beat(12)44.59%
EPS beat(16)11
Avg EPS beat(16)31.69%
Revenue beat(2)2
Avg Revenue beat(2)4.6%
Min Revenue beat(2)0.71%
Max Revenue beat(2)8.48%
Revenue beat(4)4
Avg Revenue beat(4)3.64%
Min Revenue beat(4)0.71%
Max Revenue beat(4)8.48%
Revenue beat(8)4
Avg Revenue beat(8)1.24%
Revenue beat(12)6
Avg Revenue beat(12)1.03%
Revenue beat(16)6
Avg Revenue beat(16)0.55%
PT rev (1m)1.1%
PT rev (3m)-9.69%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)11.16%
EPS NY rev (1m)0.07%
EPS NY rev (3m)4.82%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)4.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.49 | ||
| Fwd PE | 18.21 | ||
| P/S | 1.56 | ||
| P/FCF | 20.47 | ||
| P/OCF | 12.62 | ||
| P/B | 30.95 | ||
| P/tB | 172.75 | ||
| EV/EBITDA | 12.38 |
EPS(TTM)8.02
EY4.45%
EPS(NY)9.9
Fwd EY5.49%
FCF(TTM)8.81
FCFY4.89%
OCF(TTM)14.29
OCFY7.92%
SpS115.42
BVpS5.83
TBVpS1.04
PEG (NY)0.2
PEG (5Y)32.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.95% | ||
| ROE | 128.61% | ||
| ROCE | 26.06% | ||
| ROIC | 20.59% | ||
| ROICexc | 20.78% | ||
| ROICexgc | 23.42% | ||
| OM | 9.67% | ||
| PM (TTM) | 6.49% | ||
| GM | 17.64% | ||
| FCFM | 7.63% |
ROA(3y)4.95%
ROA(5y)4.33%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.64%
ROIC(5y)8.15%
ROICexc(3y)8.8%
ROICexc(5y)8.29%
ROICexgc(3y)9.93%
ROICexgc(5y)9.39%
ROCE(3y)10.94%
ROCE(5y)10.31%
ROICexcg growth 3Y2.79%
ROICexcg growth 5Y-16.57%
ROICexc growth 3Y3.26%
ROICexc growth 5Y-14.21%
OM growth 3Y-1.88%
OM growth 5Y-4.74%
PM growth 3Y-3.73%
PM growth 5Y-6.08%
GM growth 3Y2.6%
GM growth 5Y-6.44%
F-Score8
Asset Turnover1.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 1.38 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 125.66% | ||
| Cap/Sales | 4.74% | ||
| Interest Coverage | 7.92 | ||
| Cash Conversion | 92.03% | ||
| Profit Quality | 117.56% | ||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 4.53 |
F-Score8
WACC8.51%
ROIC/WACC2.42
Cap/Depr(3y)105.87%
Cap/Depr(5y)88.92%
Cap/Sales(3y)4.31%
Cap/Sales(5y)3.83%
Profit Quality(3y)99.94%
Profit Quality(5y)217.03%
High Growth Momentum
Growth
EPS 1Y (TTM)105.64%
EPS 3Y10.06%
EPS 5Y0.69%
EPS Q2Q%114.52%
EPS Next Y114.65%
EPS Next 2Y55.02%
EPS Next 3Y39.01%
EPS Next 5YN/A
Revenue 1Y (TTM)19.8%
Revenue growth 3Y9.77%
Revenue growth 5Y6.53%
Sales Q2Q%26.13%
Revenue Next Year22.13%
Revenue Next 2Y13.21%
Revenue Next 3Y10.51%
Revenue Next 5Y0.34%
EBIT growth 1Y99.88%
EBIT growth 3Y7.71%
EBIT growth 5Y1.48%
EBIT Next Year171.89%
EBIT Next 3Y45.98%
EBIT Next 5YN/A
FCF growth 1Y516.69%
FCF growth 3Y-6.83%
FCF growth 5Y37.67%
OCF growth 1Y163.05%
OCF growth 3Y4.5%
OCF growth 5Y14.68%