BRINKER INTERNATIONAL INC (EAT) Fundamental Analysis & Valuation
NYSE:EAT • US1096411004
Current stock price
142.77 USD
+6.08 (+4.45%)
At close:
143.5 USD
+0.73 (+0.51%)
Pre-Market:
This EAT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. EAT Profitability Analysis
1.1 Basic Checks
- In the past year EAT was profitable.
- EAT had a positive operating cash flow in the past year.
- Of the past 5 years EAT 4 years were 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 12.18%, EAT belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.
- With an excellent Return On Equity value of 88.25%, EAT belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
- EAT has a better Return On Invested Capital (16.80%) than 84.92% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EAT is significantly below the industry average of 10.68%.
- The 3 year average ROIC (2.53%) for EAT is below the current ROIC(16.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.18% | ||
| ROE | 88.25% | ||
| ROIC | 16.8% |
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
- With a decent Profit Margin value of 7.83%, EAT is doing good in the industry, outperforming 69.05% of the companies in the same industry.
- EAT's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 10.35%, EAT perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
- In the last couple of years the Operating Margin of EAT has declined.
- EAT has a worse Gross Margin (18.43%) than 88.89% of its industry peers.
- EAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.35% | ||
| PM (TTM) | 7.83% | ||
| GM | 18.43% |
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. EAT Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EAT is creating value.
- Compared to 1 year ago, EAT has more shares outstanding
- EAT has less shares outstanding than it did 5 years ago.
- EAT has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.68 indicates that EAT is not in any danger for bankruptcy at the moment.
- EAT has a better Altman-Z score (3.68) than 84.13% of its industry peers.
- The Debt to FCF ratio of EAT is 1.05, which is an excellent value as it means it would take EAT, only 1.05 years of fcf income to pay off all of its debts.
- EAT has a Debt to FCF ratio of 1.05. This is amongst the best in the industry. EAT outperforms 88.89% of its industry peers.
- A Debt/Equity ratio of 1.19 is on the high side and indicates that EAT has dependencies on debt financing.
- EAT has a Debt to Equity ratio of 1.19. This is comparable to the rest of the industry: EAT outperforms 54.76% 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 | 1.19 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 3.68 |
ROIC/WACC1.87
WACC8.99%
2.3 Liquidity
- A Current Ratio of 0.36 indicates that EAT may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.36, EAT is doing worse than 88.10% of the companies in the same industry.
- A Quick Ratio of 0.31 indicates that EAT may have some problems paying its short term obligations.
- EAT's Quick ratio of 0.31 is on the low side compared to the rest of the industry. EAT is outperformed by 86.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.31 |
3. EAT Growth Analysis
3.1 Past
- EAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.76%, which is quite impressive.
- The Earnings Per Share has been growing by 37.36% on average over the past years. This is a very strong growth
- The Revenue has grown by 65.25% in the past year. This is a very strong growth!
- The Revenue for EAT have been decreasing by -63.21% on average. This is quite bad
EPS 1Y (TTM)50.76%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%2.5%
Revenue 1Y (TTM)65.25%
Revenue growth 3Y-82.4%
Revenue growth 5Y-63.21%
Sales Q2Q%6.92%
3.2 Future
- The Earnings Per Share is expected to grow by 14.71% on average over the next years. This is quite good.
- Based on estimates for the next years, EAT will show a small growth in Revenue. The Revenue will grow by 6.00% on average per year.
EPS Next Y21.41%
EPS Next 2Y18.22%
EPS Next 3Y15.07%
EPS Next 5Y14.71%
Revenue Next Year8.36%
Revenue Next 2Y6.9%
Revenue Next 3Y5.58%
Revenue Next 5Y6%
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. EAT Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.35, which indicates a correct valuation of EAT.
- EAT's Price/Earnings ratio is rather cheap when compared to the industry. EAT is cheaper than 80.16% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 25.35. EAT is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 11.48, the valuation of EAT can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EAT indicates a rather cheap valuation: EAT is cheaper than 83.33% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 22.61. EAT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 11.48 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EAT indicates a somewhat cheap valuation: EAT is cheaper than 61.90% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, EAT is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.64 | ||
| EV/EBITDA | 10.08 |
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.
- The decent profitability rating of EAT may justify a higher PE ratio.
- EAT's earnings are expected to grow with 15.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)0.38
EPS Next 2Y18.22%
EPS Next 3Y15.07%
5. EAT Dividend Analysis
5.1 Amount
- No dividends for EAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EAT Fundamentals: All Metrics, Ratios and Statistics
142.77
+6.08 (+4.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)01-28 2026-01-28/bmo
Earnings (Next)04-27 2026-04-27/bmo
Inst Owners114.61%
Inst Owner Change2.24%
Ins Owners1.14%
Ins Owner Change-5.9%
Market Cap6.22B
Revenue(TTM)4.28B
Net Income(TTM)334.72M
Analysts80
Price Target189.22 (32.53%)
Short Float %10.05%
Short Ratio3.28
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)7.97%
Min EPS beat(2)7.76%
Max EPS beat(2)8.18%
EPS beat(4)4
Avg EPS beat(4)4.87%
Min EPS beat(4)0.67%
Max EPS beat(4)8.18%
EPS beat(8)7
Avg EPS beat(8)13.58%
EPS beat(12)11
Avg EPS beat(12)41.88%
EPS beat(16)13
Avg EPS beat(16)33.8%
Revenue beat(2)2
Avg Revenue beat(2)0.86%
Min Revenue beat(2)0.31%
Max Revenue beat(2)1.41%
Revenue beat(4)4
Avg Revenue beat(4)0.99%
Min Revenue beat(4)0.31%
Max Revenue beat(4)1.58%
Revenue beat(8)7
Avg Revenue beat(8)2.1%
Revenue beat(12)7
Avg Revenue beat(12)1.09%
Revenue beat(16)9
Avg Revenue beat(16)0.92%
PT rev (1m)-0.86%
PT rev (3m)13.84%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-0.76%
EPS NY rev (1m)0.18%
EPS NY rev (3m)3%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 11.48 | ||
| P/S | 1.45 | ||
| P/FCF | 13.64 | ||
| P/OCF | 8.43 | ||
| P/B | 16.39 | ||
| P/tB | 36.97 | ||
| EV/EBITDA | 10.08 |
EPS(TTM)9.95
EY6.97%
EPS(NY)12.44
Fwd EY8.71%
FCF(TTM)10.47
FCFY7.33%
OCF(TTM)16.94
OCFY11.86%
SpS98.17
BVpS8.71
TBVpS3.86
PEG (NY)0.67
PEG (5Y)0.38
Graham Number44.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.18% | ||
| ROE | 88.25% | ||
| ROCE | 21.27% | ||
| ROIC | 16.8% | ||
| ROICexc | 16.93% | ||
| ROICexgc | 18.85% | ||
| OM | 10.35% | ||
| PM (TTM) | 7.83% | ||
| GM | 18.43% | ||
| FCFM | 10.66% |
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-Score9
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 1.05 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 127.63% | ||
| Cap/Sales | 6.59% | ||
| Interest Coverage | 10.38 | ||
| Cash Conversion | 111.25% | ||
| Profit Quality | 136.2% | ||
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 3.68 |
F-Score9
WACC8.99%
ROIC/WACC1.87
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)50.76%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%2.5%
EPS Next Y21.41%
EPS Next 2Y18.22%
EPS Next 3Y15.07%
EPS Next 5Y14.71%
Revenue 1Y (TTM)65.25%
Revenue growth 3Y-82.4%
Revenue growth 5Y-63.21%
Sales Q2Q%6.92%
Revenue Next Year8.36%
Revenue Next 2Y6.9%
Revenue Next 3Y5.58%
Revenue Next 5Y6%
EBIT growth 1Y66.51%
EBIT growth 3Y-85.85%
EBIT growth 5Y-65.47%
EBIT Next Year55.95%
EBIT Next 3Y20.76%
EBIT Next 5Y16.3%
FCF growth 1Y185.83%
FCF growth 3Y-71.42%
FCF growth 5Y-55.77%
OCF growth 1Y117.87%
OCF growth 3Y-77.72%
OCF growth 5Y-59.15%
BRINKER INTERNATIONAL INC / EAT Fundamental Analysis FAQ
What is the fundamental rating for EAT stock?
ChartMill assigns a fundamental rating of 6 / 10 to EAT.
What is the valuation status of BRINKER INTERNATIONAL INC (EAT) stock?
ChartMill assigns a valuation rating of 8 / 10 to BRINKER INTERNATIONAL INC (EAT). This can be considered as Undervalued.
What is the profitability of EAT stock?
BRINKER INTERNATIONAL INC (EAT) has a profitability rating of 6 / 10.
Can you provide the financial health for EAT stock?
The financial health rating of BRINKER INTERNATIONAL INC (EAT) is 5 / 10.
Is the dividend of BRINKER INTERNATIONAL INC sustainable?
The dividend rating of BRINKER INTERNATIONAL INC (EAT) is 0 / 10 and the dividend payout ratio is 0%.