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 an average financial health and profitability rating. EAT is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
EAT had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

EAT's Return On Assets of 11.97% is amongst the best of 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.
EAT's Return On Invested Capital of 16.64% is amongst the best of the industry. EAT outperforms 84.96% 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 10.34%.
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 has a better Profit Margin (7.77%) than 67.67% of its industry peers.
EAT's Profit Margin has declined in the last couple of years.
EAT has a Operating Margin of 10.56%. This is comparable to the rest of the industry: EAT outperforms 59.40% of its industry peers.
EAT's Operating Margin has declined in the last couple of years.
EAT has a Gross Margin of 18.50%. This is amonst the worse of the industry: EAT underperforms 87.22% of its industry peers.
EAT's Gross Margin has improved in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
EAT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EAT is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 3.88 indicates that EAT is not in any danger for bankruptcy at the moment.
EAT's Altman-Z score of 3.88 is amongst the best of the industry. EAT outperforms 84.96% of its industry peers.
EAT has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
The Debt to FCF ratio of EAT (1.16) is better than 90.23% of its industry peers.
EAT has a Debt/Equity ratio of 1.53. This is a high value indicating a heavy dependency on external financing.
EAT has a Debt to Equity ratio (1.53) which is comparable to the rest of the industry.
Although EAT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

		Industry Rank	Sector Rank
Debt/Equity	1.53
Debt/FCF	1.16
Altman-Z	3.88

ROIC/WACC1.87

WACC8.9%

2.3 Liquidity

A Current Ratio of 0.35 indicates that EAT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.35, EAT is doing worse than 85.71% of the companies in the same industry.
EAT has a Quick 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 Quick ratio of 0.29. This is amonst the worse of the industry: EAT underperforms 84.21% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.35
Quick Ratio	0.29

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

EAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 106.26%, which is quite impressive.
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%.
Measured over the past years, EAT shows a very negative growth in Revenue. The Revenue has been decreasing by -63.21% on average per year.

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.
EAT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.49% yearly.

EPS Next Y17.87%

EPS Next 2Y16.53%

EPS Next 3Y13.99%

EPS Next 5YN/A

Revenue Next Year7.38%

Revenue Next 2Y6.36%

Revenue Next 3Y5.46%

Revenue Next 5Y-3.49%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.

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4. Valuation

4.1 Price/Earnings Ratio

EAT is valuated correctly with a Price/Earnings ratio of 16.47.
Based on the Price/Earnings ratio, EAT is valued a bit cheaper than 77.44% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. EAT is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.47 indicates a correct valuation of EAT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EAT indicates a rather cheap valuation: EAT is cheaper than 80.45% of the companies listed in the same industry.
EAT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.

		Industry Rank	Sector Rank
PE	16.47
Fwd PE	13.47

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 cheaply inside the industry as 83.46% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	15.27
EV/EBITDA	11.05

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 13.99% in the coming years.