BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
USA - NYSE:EAT - US1096411004 - Common Stock
127.13 USD
-0.81 (-0.63%)
125.5 USD
-1.63 (-1.28%)
Overall EAT gets a fundamental rating of 5 out of 10. We evaluated EAT against 132 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, EAT could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
EAT had positive earnings in the past year.
EAT had a positive operating cash flow in the past year.
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
The Return On Assets of EAT (11.97%) is better than 87.12% of its industry peers.
EAT has a Return On Equity of 94.42%. This is amongst the best in the industry. EAT outperforms 94.70% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.64%, EAT belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
EAT had an Average Return On Invested Capital over the past 3 years of 2.53%. This is significantly below the industry average of 10.61%.
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
With a decent Profit Margin value of 7.77%, EAT is doing good in the industry, outperforming 65.91% of the companies in the same industry.
EAT's Profit Margin has declined in the last couple of years.
The Operating Margin of EAT (10.56%) 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 18.50%. This is amonst the worse of the industry: EAT underperforms 88.64% 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%
2. Health
2.1 Basic Checks
EAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for EAT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.48 indicates that EAT is not in any danger for bankruptcy at the moment.
EAT has a better Altman-Z score (3.48) than 81.82% 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.
EAT has a Debt to FCF ratio of 1.16. This is amongst the best in the industry. EAT outperforms 90.15% 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.
Looking at the Debt to Equity ratio, with a value of 1.53, EAT is in line with its industry, outperforming 56.82% of the companies in the same industry.
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 | 1.53 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 3.48 |
ROIC/WACC1.9
WACC8.77%
2.3 Liquidity
A Current Ratio of 0.35 indicates that EAT may have some problems paying its short term obligations.
EAT has a worse Current ratio (0.35) than 87.12% of its industry peers.
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 worse Quick ratio (0.29) than 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 106.26% over the past year.
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.
EAT shows a strong growth in Revenue. In the last year, the Revenue has grown by 81.56%.
EAT shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -63.21% yearly.
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
The Earnings Per Share is expected to grow by 13.52% on average over the next years. This is quite good.
The Revenue is expected to decrease by -3.49% on average over the next years.
EPS Next Y16.65%
EPS Next 2Y15.96%
EPS Next 3Y13.52%
EPS Next 5YN/A
Revenue Next Year7.01%
Revenue Next 2Y6.05%
Revenue Next 3Y4.97%
Revenue Next 5Y-3.49%
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.87 indicates a correct valuation of EAT.
Based on the Price/Earnings ratio, EAT is valued a bit cheaper than 79.55% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.07, EAT is valued a bit cheaper.
The Price/Forward Earnings ratio is 10.62, which indicates a very decent valuation of EAT.
81.82% of the companies in the same industry are more expensive than EAT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of EAT to the average of the S&P500 Index (34.08), we can say EAT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.87 | ||
| Fwd PE | 10.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EAT is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
87.88% 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 | 11.93 | ||
| EV/EBITDA | 8.81 |
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.
EAT's earnings are expected to grow with 13.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)0.34
EPS Next 2Y15.96%
EPS Next 3Y13.52%
5. Dividend
5.1 Amount
EAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
127.13
-0.81 (-0.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners109.97%
Inst Owner Change5.39%
Ins Owners1.46%
Ins Owner Change0.18%
Market Cap5.65B
Revenue(TTM)4.18B
Net Income(TTM)324.72M
Analysts76
Price Target172.09 (35.37%)
Short Float %12.01%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)4.22%
Min EPS beat(2)0.67%
Max EPS beat(2)7.76%
EPS beat(4)4
Avg EPS beat(4)15.83%
Min EPS beat(4)0.67%
Max EPS beat(4)52.02%
EPS beat(8)7
Avg EPS beat(8)13%
EPS beat(12)11
Avg EPS beat(12)44.85%
EPS beat(16)13
Avg EPS beat(16)35.58%
Revenue beat(2)2
Avg Revenue beat(2)0.5%
Min Revenue beat(2)0.31%
Max Revenue beat(2)0.68%
Revenue beat(4)4
Avg Revenue beat(4)2.76%
Min Revenue beat(4)0.31%
Max Revenue beat(4)8.48%
Revenue beat(8)6
Avg Revenue beat(8)1.74%
Revenue beat(12)7
Avg Revenue beat(12)1.11%
Revenue beat(16)8
Avg Revenue beat(16)0.76%
PT rev (1m)-5.48%
PT rev (3m)-1.7%
EPS NQ rev (1m)-6.54%
EPS NQ rev (3m)-6.56%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)4.48%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.87 | ||
| Fwd PE | 10.62 | ||
| P/S | 1.35 | ||
| P/FCF | 11.93 | ||
| P/OCF | 7.09 | ||
| P/B | 16.42 | ||
| P/tB | 42.66 | ||
| EV/EBITDA | 8.81 |
EPS(TTM)9.88
EY7.77%
EPS(NY)11.97
Fwd EY9.41%
FCF(TTM)10.66
FCFY8.38%
OCF(TTM)17.94
OCFY14.11%
SpS94.11
BVpS7.74
TBVpS2.98
PEG (NY)0.77
PEG (5Y)0.34
Graham Number41.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 94.42% | ||
| ROCE | 21.06% | ||
| ROIC | 16.64% | ||
| ROICexc | 16.91% | ||
| ROICexgc | 18.84% | ||
| OM | 10.56% | ||
| PM (TTM) | 7.77% | ||
| GM | 18.5% | ||
| FCFM | 11.32% |
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-Score5
Asset Turnover1.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 125.18% | ||
| Cap/Sales | 7.74% | ||
| Interest Coverage | 6.14 | ||
| Cash Conversion | 113.87% | ||
| Profit Quality | 145.82% | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 3.48 |
F-Score5
WACC8.77%
ROIC/WACC1.9
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)106.26%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%103.16%
EPS Next Y16.65%
EPS Next 2Y15.96%
EPS Next 3Y13.52%
EPS Next 5YN/A
Revenue 1Y (TTM)81.56%
Revenue growth 3Y-82.4%
Revenue growth 5Y-63.21%
Sales Q2Q%18.45%
Revenue Next Year7.01%
Revenue Next 2Y6.05%
Revenue Next 3Y4.97%
Revenue Next 5Y-3.49%
EBIT growth 1Y170.46%
EBIT growth 3Y-85.85%
EBIT growth 5Y-65.47%
EBIT Next Year54.62%
EBIT Next 3Y19.33%
EBIT Next 5YN/A
FCF growth 1Y347.99%
FCF growth 3Y-71.42%
FCF growth 5Y-55.77%
OCF growth 1Y174.08%
OCF growth 3Y-77.72%
OCF growth 5Y-59.15%
BRINKER INTERNATIONAL INC / EAT FAQ
What is the fundamental rating for EAT stock?
ChartMill assigns a fundamental rating of 5 / 10 to EAT.
What is the valuation status for EAT stock?
ChartMill assigns a valuation rating of 8 / 10 to BRINKER INTERNATIONAL INC (EAT). This can be considered as Undervalued.
Can you provide the profitability details for BRINKER INTERNATIONAL INC?
BRINKER INTERNATIONAL INC (EAT) has a profitability rating of 6 / 10.
How financially healthy is BRINKER INTERNATIONAL INC?
The financial health rating of BRINKER INTERNATIONAL INC (EAT) is 5 / 10.
Can you provide the dividend sustainability for EAT stock?
The dividend rating of BRINKER INTERNATIONAL INC (EAT) is 0 / 10 and the dividend payout ratio is 0%.