BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
NYSE:EAT - New York Stock Exchange, Inc. - US1096411004 - Common Stock - Currency: USD
EAT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 134 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of EAT while its profitability can be described as average. 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.
EAT had positive earnings in each of the past 5 years.
EAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EAT has a better Return On Assets (7.37%) than 80.15% of its industry peers.
EAT has a Return On Equity of 1469.29%. This is amongst the best in the industry. EAT outperforms 100.00% of its industry peers.
EAT has a better Return On Invested Capital (12.43%) than 80.15% of its industry peers.
EAT had an Average Return On Invested Capital over the past 3 years of 8.64%. This is in line with the industry average of 10.55%.
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
EAT has a Profit Margin (4.11%) which is comparable to the rest of the 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 42.75% of the companies in the same industry.
EAT's Operating Margin has declined in the last couple of years.
EAT has a Gross Margin of 14.88%. This is amonst the worse of the industry: EAT underperforms 90.08% 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
EAT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
EAT has more shares outstanding than it did 1 year ago.
EAT has more shares outstanding than it did 5 years ago.
EAT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.53 indicates that EAT is not in any danger for bankruptcy at the moment.
EAT has a Altman-Z score of 3.53. This is in the better half of the industry: EAT outperforms 79.39% of its industry peers.
EAT has a debt to FCF ratio of 3.78. This is a good value and a sign of high solvency as EAT would need 3.78 years to pay back of all of its debts.
EAT has a better Debt to FCF ratio (3.78) than 77.86% of its industry peers.
A Debt/Equity ratio of 63.54 is on the high side and indicates that EAT has dependencies on debt financing.
With a Debt to Equity ratio value of 63.54, EAT is not doing good in the industry: 69.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 63.54 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 3.53 |
ROIC/WACC1.43
WACC8.66%
2.3 Liquidity
A Current Ratio of 0.32 indicates that EAT may have some problems paying 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 86.26% of its industry peers.
A Quick Ratio of 0.26 indicates that EAT may have some problems paying its short term obligations.
EAT has a Quick ratio of 0.26. This is amonst the worse of the industry: EAT underperforms 90.84% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 0.69% on average over the past years.
The Revenue has grown by 8.39% in the past year. This is quite good.
EAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.53% yearly.
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
Based on estimates for the next years, EAT will show a very strong growth in Earnings Per Share. The EPS will grow by 20.54% on average per year.
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 Year10.31%
Revenue Next 2Y7.07%
Revenue Next 3Y6.34%
Revenue Next 5Y0.34%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.28, EAT can be considered very expensive at the moment.
EAT's Price/Earnings is on the same level as the industry average.
EAT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.42.
With a Price/Forward Earnings ratio of 24.32, EAT is valued on the expensive side.
EAT's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.39, EAT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.28 | ||
| Fwd PE | 24.32 |
4.2 Price Multiples
EAT's Enterprise Value to EBITDA is on the same level as the industry average.
64.12% 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 | 31.64 | ||
| EV/EBITDA | 15.64 |
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 20.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)46.52
EPS Next 2Y24.23%
EPS Next 3Y20.54%
5. Dividend
5.1 Amount
EAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BRINKER INTERNATIONAL INC
NYSE:EAT (1/28/2025, 8:04:00 PM)
After market: 157.99 +3.38 (+2.19%)154.61
+2.79 (+1.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners113.1%
Inst Owner Change2.78%
Ins Owners1.69%
Ins Owner Change2.55%
Market Cap6.87B
Analysts68.33
Price Target113.56 (-26.55%)
Short Float %12.39%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)10.3%
PT rev (3m)41.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)22.48%
EPS NY rev (1m)0%
EPS NY rev (3m)16.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.71%
Revenue NY rev (1m)1.1%
Revenue NY rev (3m)4.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.28 | ||
| Fwd PE | 24.32 | ||
| P/S | 1.51 | ||
| P/FCF | 31.64 | ||
| P/OCF | 16.14 | ||
| P/B | 540.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.64 |
EPS(TTM)4.79
EY3.1%
EPS(NY)6.36
Fwd EY4.11%
FCF(TTM)4.89
FCFY3.16%
OCF(TTM)9.58
OCFY6.2%
SpS102.22
BVpS0.29
TBVpS-4.54
PEG (NY)0.94
PEG (5Y)46.52
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 | 3.53 |
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 Year10.31%
Revenue Next 2Y7.07%
Revenue Next 3Y6.34%
Revenue Next 5Y0.34%
EBIT growth 1Y38.31%
EBIT growth 3Y7.71%
EBIT growth 5Y1.48%
EBIT Next Year101.75%
EBIT Next 3Y33.26%
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%