BRINKER INTERNATIONAL INC (EAT)
US1096411004 - Common Stock
We assign a fundamental rating of 4 out of 10 to EAT. EAT was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. EAT has a medium profitability rating, but doesn't score so well on its financial health evaluation. EAT has a decent growth rate and is not valued too expensively.
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.
EAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.37%, EAT belongs to the top of the industry, outperforming 80.45% of the companies in the same industry.
EAT has a better Return On Equity (1469.29%) than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 12.43%, EAT belongs to the best of the industry, outperforming 80.45% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EAT is in line with the industry average of 10.54%.
The 3 year average ROIC (8.64%) for EAT is below the current ROIC(12.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 1469.29% | ||
| ROIC | 12.43% |
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
With a Profit Margin value of 4.11%, EAT perfoms like the industry average, outperforming 56.39% of the companies in the same industry.
In the last couple of years the Profit Margin of EAT has declined.
With a Operating Margin value of 6.77%, EAT perfoms like the industry average, outperforming 44.36% of the companies in the same industry.
In the last couple of years the Operating Margin of EAT has declined.
EAT has a Gross Margin of 14.88%. This is amonst the worse of the industry: EAT underperforms 90.23% of its industry peers.
In the last couple of years the Gross Margin of EAT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.77% | ||
| PM (TTM) | 4.11% | ||
| GM | 14.88% |
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 just above the Cost of Capital (WACC), so EAT is still creating some value.
EAT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for EAT has been increased compared to 5 years ago.
Compared to 1 year ago, EAT has an improved debt to assets ratio.
2.2 Solvency
EAT has an Altman-Z score of 3.37. This indicates that EAT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EAT (3.37) is better than 78.20% of its industry peers.
The Debt to FCF ratio of EAT is 3.78, which is a good value as it means it would take EAT, 3.78 years of fcf income to pay off all of its debts.
EAT's Debt to FCF ratio of 3.78 is fine compared to the rest of the industry. EAT outperforms 77.44% of its industry peers.
EAT has a Debt/Equity ratio of 63.54. This is a high value indicating a heavy dependency on external financing.
EAT has a worse Debt to Equity ratio (63.54) than 70.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 63.54 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 3.37 |
ROIC/WACC1.43
WACC8.66%
2.3 Liquidity
EAT has a Current Ratio of 0.32. 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's Current ratio of 0.32 is on the low side compared to the rest of the industry. EAT is outperformed by 86.47% of its industry peers.
EAT has a Quick Ratio of 0.32. This is a bad value and indicates that EAT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.26, EAT is not doing good in the industry: 90.98% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
EAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.87%, which is quite impressive.
Measured over the past 5 years, EAT shows a small growth in Earnings Per Share. The EPS has been growing by 0.69% on average per year.
Looking at the last year, EAT shows a quite strong growth in Revenue. The Revenue has grown by 8.39% in the last year.
The Revenue has been growing slightly by 6.53% on average over the past years.
EPS 1Y (TTM)30.87%
EPS 3Y10.06%
EPS 5Y0.69%
EPS Q2Q%239.29%
Revenue 1Y (TTM)8.39%
Revenue growth 3Y9.77%
Revenue growth 5Y6.53%
Sales Q2Q%12.49%
3.2 Future
The Earnings Per Share is expected to grow by 20.54% 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 Y34.3%
EPS Next 2Y24.23%
EPS Next 3Y20.54%
EPS Next 5YN/A
Revenue Next Year9.11%
Revenue Next 2Y6.39%
Revenue Next 3Y5.41%
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.
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
Based on the Price/Earnings ratio of 28.60, the valuation of EAT can be described as expensive.
EAT's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.54, EAT is valued at the same level.
A Price/Forward Earnings ratio of 21.55 indicates a rather expensive valuation of EAT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EAT indicates a somewhat cheap valuation: EAT is cheaper than 63.16% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of EAT to the average of the S&P500 Index (23.99), we can say EAT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.6 | ||
| Fwd PE | 21.55 |
4.2 Price Multiples
EAT's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, EAT is valued a bit cheaper than 66.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.04 | ||
| EV/EBITDA | 14.29 |
4.3 Compensation for Growth
EAT's 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 20.54% in the coming years.
PEG (NY)0.83
PEG (5Y)41.23
EPS Next 2Y24.23%
EPS Next 3Y20.54%
5. Dividend
5.1 Amount
No dividends for EAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BRINKER INTERNATIONAL INC
NYSE:EAT (12/26/2024, 12:39:02 PM)
137.01
-0.18 (-0.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners113.1%
Inst Owner Change0.24%
Ins Owners1.69%
Ins Owner Change2.55%
Market Cap6.09B
Analysts66.09
Price Target102.96 (-24.85%)
Short Float %12.07%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)-68.87%
DP0.11%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.99%
Min EPS beat(2)-7.3%
Max EPS beat(2)37.27%
EPS beat(4)3
Avg EPS beat(4)10.17%
Min EPS beat(4)-7.3%
Max EPS beat(4)37.27%
EPS beat(8)7
Avg EPS beat(8)59.36%
EPS beat(12)9
Avg EPS beat(12)42.16%
EPS beat(16)10
Avg EPS beat(16)28.43%
Revenue beat(2)2
Avg Revenue beat(2)2.67%
Min Revenue beat(2)2.52%
Max Revenue beat(2)2.83%
Revenue beat(4)2
Avg Revenue beat(4)0.71%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)2.83%
Revenue beat(8)3
Avg Revenue beat(8)0.29%
Revenue beat(12)4
Avg Revenue beat(12)0.09%
Revenue beat(16)4
Avg Revenue beat(16)-0.23%
PT rev (1m)28.38%
PT rev (3m)52.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)22.48%
EPS NY rev (1m)1.56%
EPS NY rev (3m)16.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.71%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)3.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.6 | ||
| Fwd PE | 21.55 | ||
| P/S | 1.34 | ||
| P/FCF | 28.04 | ||
| P/OCF | 14.3 | ||
| P/B | 479.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.29 |
EPS(TTM)4.79
EY3.5%
EPS(NY)6.36
Fwd EY4.64%
FCF(TTM)4.89
FCFY3.57%
OCF(TTM)9.58
OCFY6.99%
SpS102.22
BVpS0.29
TBVpS-4.54
PEG (NY)0.83
PEG (5Y)41.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 1469.29% | ||
| ROCE | 15.73% | ||
| ROIC | 12.43% | ||
| ROICexc | 12.53% | ||
| ROICexgc | 14.09% | ||
| OM | 6.77% | ||
| PM (TTM) | 4.11% | ||
| GM | 14.88% | ||
| FCFM | 4.78% |
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 Turnover1.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 63.54 | ||
| Debt/FCF | 3.78 | ||
| Debt/EBITDA | 1.67 | ||
| Cap/Depr | 119.01% | ||
| Cap/Sales | 4.59% | ||
| Interest Coverage | 5.04 | ||
| Cash Conversion | 88.15% | ||
| Profit Quality | 116.35% | ||
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 3.37 |
F-Score8
WACC8.66%
ROIC/WACC1.43
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)30.87%
EPS 3Y10.06%
EPS 5Y0.69%
EPS Q2Q%239.29%
EPS Next Y34.3%
EPS Next 2Y24.23%
EPS Next 3Y20.54%
EPS Next 5YN/A
Revenue 1Y (TTM)8.39%
Revenue growth 3Y9.77%
Revenue growth 5Y6.53%
Sales Q2Q%12.49%
Revenue Next Year9.11%
Revenue Next 2Y6.39%
Revenue Next 3Y5.41%
Revenue Next 5Y0.34%
EBIT growth 1Y38.31%
EBIT growth 3Y7.71%
EBIT growth 5Y1.48%
EBIT Next Year93.74%
EBIT Next 3Y30.06%
EBIT Next 5YN/A
FCF growth 1Y182.32%
FCF growth 3Y-6.83%
FCF growth 5Y37.67%
OCF growth 1Y79.88%
OCF growth 3Y4.5%
OCF growth 5Y14.68%