BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
NYSE:EAT - New York Stock Exchange, Inc. - US1096411004 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to EAT. EAT was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of EAT get a neutral evaluation. Nothing too spectacular is happening here. EAT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
EAT had positive earnings in the past year.
In the past year EAT had a positive cash flow from operations.
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
The Return On Assets of EAT (10.27%) is better than 85.19% of its industry peers.
Looking at the Return On Equity, with a value of 200.00%, EAT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
EAT's Return On Invested Capital of 16.91% is amongst the best of the industry. EAT outperforms 86.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EAT is significantly below the industry average of 15.93%.
The 3 year average ROIC (8.64%) for EAT is below the current ROIC(16.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.27% | ||
| ROE | 200% | ||
| ROIC | 16.91% |
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's Profit Margin of 5.45% is in line compared to the rest of the industry. EAT outperforms 58.52% of its industry peers.
In the last couple of years the Profit Margin of EAT has declined.
EAT has a Operating Margin (8.50%) which is comparable to the rest of the industry.
EAT's Operating Margin has declined in the last couple of years.
EAT has a Gross Margin of 16.47%. This is amonst the worse of the industry: EAT underperforms 87.41% of its industry peers.
EAT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.5% | ||
| PM (TTM) | 5.45% | ||
| GM | 16.47% |
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.
EAT has more shares outstanding than it did 1 year ago.
EAT has more shares outstanding than it did 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 3.74. This indicates that EAT is financially healthy and has little risk of bankruptcy at the moment.
EAT has a better Altman-Z score (3.74) than 83.70% of its industry peers.
EAT has a debt to FCF ratio of 1.99. This is a very positive value and a sign of high solvency as it would only need 1.99 years to pay back of all of its debts.
The Debt to FCF ratio of EAT (1.99) is better than 86.67% of its industry peers.
A Debt/Equity ratio of 4.96 is on the high side and indicates that EAT has dependencies on debt financing.
EAT's Debt to Equity ratio of 4.96 is in line compared to the rest of the industry. EAT outperforms 40.74% 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 | 4.96 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 3.74 |
ROIC/WACC1.91
WACC8.85%
2.3 Liquidity
EAT has a Current Ratio of 0.33. This is a bad value and indicates that EAT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of EAT (0.33) is worse than 85.19% of its industry peers.
A Quick Ratio of 0.27 indicates that EAT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.27, EAT is doing worse than 85.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
EAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 69.67%, which is quite impressive.
The Earnings Per Share has been growing slightly by 0.69% on average over the past years.
Looking at the last year, EAT shows a quite strong growth in Revenue. The Revenue has grown by 13.67% in the last year.
Measured over the past years, EAT shows a small growth in Revenue. The Revenue has been growing by 6.53% on average per year.
EPS 1Y (TTM)69.67%
EPS 3Y10.06%
EPS 5Y0.69%
EPS Q2Q%182.83%
Revenue 1Y (TTM)13.67%
Revenue growth 3Y9.77%
Revenue growth 5Y6.53%
Sales Q2Q%26.45%
3.2 Future
EAT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.57% yearly.
The Revenue is expected to grow by 0.34% on average over the next years.
EPS Next Y104.96%
EPS Next 2Y52.82%
EPS Next 3Y38.57%
EPS Next 5YN/A
Revenue Next Year19.66%
Revenue Next 2Y11.96%
Revenue Next 3Y9.62%
Revenue Next 5Y0.34%
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 accelerating.
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
With a Price/Earnings ratio of 21.42, EAT is valued on the expensive side.
EAT's Price/Earnings ratio is a bit cheaper when compared to the industry. EAT is cheaper than 67.41% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. EAT is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.69, the valuation of EAT can be described as correct.
Based on the Price/Forward Earnings ratio, EAT is valued a bit cheaper than 80.00% of the companies in the same industry.
EAT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.42 | ||
| Fwd PE | 14.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EAT is on the same level as its industry peers.
77.04% 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 | 18.61 | ||
| EV/EBITDA | 11.72 |
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.
The decent profitability rating of EAT may justify a higher PE ratio.
A more expensive valuation may be justified as EAT's earnings are expected to grow with 38.57% in the coming years.
PEG (NY)0.2
PEG (5Y)30.87
EPS Next 2Y52.82%
EPS Next 3Y38.57%
5. Dividend
5.1 Amount
No dividends for EAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
141.37
+1.9 (+1.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners105.54%
Inst Owner Change-3.59%
Ins Owners1.58%
Ins Owner Change-1.6%
Market Cap6.28B
Analysts70.83
Price Target185.16 (30.98%)
Short Float %9.52%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-68.87%
DP0.08%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)44.64%
Min EPS beat(2)37.27%
Max EPS beat(2)52.02%
EPS beat(4)3
Avg EPS beat(4)22.29%
Min EPS beat(4)-7.3%
Max EPS beat(4)52.02%
EPS beat(8)7
Avg EPS beat(8)60.39%
EPS beat(12)9
Avg EPS beat(12)43.44%
EPS beat(16)10
Avg EPS beat(16)31.29%
Revenue beat(2)2
Avg Revenue beat(2)5.5%
Min Revenue beat(2)2.52%
Max Revenue beat(2)8.48%
Revenue beat(4)3
Avg Revenue beat(4)3.2%
Min Revenue beat(4)-1.03%
Max Revenue beat(4)8.48%
Revenue beat(8)3
Avg Revenue beat(8)1.14%
Revenue beat(12)5
Avg Revenue beat(12)0.9%
Revenue beat(16)5
Avg Revenue beat(16)0.35%
PT rev (1m)36.67%
PT rev (3m)79.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)65.92%
EPS NY rev (1m)32.84%
EPS NY rev (3m)52.67%
Revenue NQ rev (1m)0.87%
Revenue NQ rev (3m)14.95%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)9.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.42 | ||
| Fwd PE | 14.69 | ||
| P/S | 1.3 | ||
| P/FCF | 18.61 | ||
| P/OCF | 11.36 | ||
| P/B | 47.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.72 |
EPS(TTM)6.6
EY4.67%
EPS(NY)9.62
Fwd EY6.81%
FCF(TTM)7.6
FCFY5.37%
OCF(TTM)12.44
OCFY8.8%
SpS108.66
BVpS2.96
TBVpS-1.84
PEG (NY)0.2
PEG (5Y)30.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.27% | ||
| ROE | 200% | ||
| ROCE | 21.4% | ||
| ROIC | 16.91% | ||
| ROICexc | 17.04% | ||
| ROICexgc | 19.19% | ||
| OM | 8.5% | ||
| PM (TTM) | 5.45% | ||
| GM | 16.47% | ||
| FCFM | 6.99% |
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 Turnover1.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.96 | ||
| Debt/FCF | 1.99 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 118.5% | ||
| Cap/Sales | 4.46% | ||
| Interest Coverage | 6.4 | ||
| Cash Conversion | 93.41% | ||
| Profit Quality | 128.29% | ||
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 3.74 |
F-Score8
WACC8.85%
ROIC/WACC1.91
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)69.67%
EPS 3Y10.06%
EPS 5Y0.69%
EPS Q2Q%182.83%
EPS Next Y104.96%
EPS Next 2Y52.82%
EPS Next 3Y38.57%
EPS Next 5YN/A
Revenue 1Y (TTM)13.67%
Revenue growth 3Y9.77%
Revenue growth 5Y6.53%
Sales Q2Q%26.45%
Revenue Next Year19.66%
Revenue Next 2Y11.96%
Revenue Next 3Y9.62%
Revenue Next 5Y0.34%
EBIT growth 1Y71.62%
EBIT growth 3Y7.71%
EBIT growth 5Y1.48%
EBIT Next Year149.6%
EBIT Next 3Y42.02%
EBIT Next 5YN/A
FCF growth 1Y716.95%
FCF growth 3Y-6.83%
FCF growth 5Y37.67%
OCF growth 1Y159.68%
OCF growth 3Y4.5%
OCF growth 5Y14.68%