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. Both the profitability and the financial health of EAT get a neutral evaluation. Nothing too spectacular is happening here. EAT has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
EAT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years EAT had a positive operating cash flow.

1.2 Ratios

EAT has a Return On Assets of 11.97%. This is amongst the best in the industry. EAT outperforms 87.97% of its industry peers.
With an excellent Return On Equity value of 94.42%, EAT belongs to the best 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.
The Average Return On Invested Capital over the past 3 years for EAT is significantly below the industry average of 10.34%.
The 3 year average ROIC (2.53%) for EAT is below the current ROIC(16.64%), indicating increased profibility in the last year.

		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

Looking at the Profit Margin, with a value of 7.77%, EAT is in the better half of the industry, outperforming 67.67% of the companies in the same industry.
EAT's Profit Margin has declined in the last couple of years.
EAT has a Operating Margin (10.56%) which is in line with its industry peers.
In the last couple of years the Operating Margin of EAT has declined.
Looking at the Gross Margin, with a value of 18.50%, EAT is doing worse than 87.22% of the companies in the same industry.
In the last couple of years the Gross Margin of EAT has grown nicely.

		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

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EAT is creating value.
EAT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for EAT has been reduced compared to 5 years ago.
EAT has a worse debt/assets ratio than last year.

2.2 Solvency

EAT has an Altman-Z score of 3.88. This indicates that EAT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.88, EAT belongs to the best of the industry, outperforming 84.96% of the companies in the same industry.
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.
EAT's Debt to FCF ratio of 1.16 is amongst the best of the industry. EAT outperforms 90.23% of its industry peers.
A Debt/Equity ratio of 1.53 is on the high side and indicates that EAT has dependencies on debt 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

WACC8.88%

2.3 Liquidity

EAT has a Current 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.
With a Current ratio value of 0.35, EAT is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.29, EAT is not doing good in the industry: 84.21% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	0.35
Quick Ratio	0.29

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 106.26% over the past year.
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 81.56% in the past year. This is a very strong growth!
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

EAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.99% yearly.
Based on estimates for the next years, EAT will show a decrease in Revenue. The Revenue will decrease by -3.49% on average per year.

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 16.47, the valuation of EAT can be described as correct.
77.44% of the companies in the same industry are more expensive than EAT, based on the Price/Earnings ratio.
EAT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
The Price/Forward Earnings ratio is 13.47, which indicates a correct valuation of EAT.
Based on the Price/Forward Earnings ratio, EAT is valued cheaper than 80.45% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, EAT is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	16.47
Fwd PE	13.47

4.2 Price Multiples

EAT's Enterprise Value to EBITDA ratio is in line with the industry average.
EAT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EAT is cheaper than 83.46% of the companies in the same industry.

		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.
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 13.99% in the coming years.