BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EAT - US1096411004 - Common Stock
160.01 USD
+0.01 (+0.01%)
160.01 USD
0 (0%)
Taking everything into account, EAT scores 5 out of 10 in our fundamental rating. 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 may be a bit undervalued, certainly considering the very reasonable score on growth This makes EAT very considerable 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.
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 11.97%, EAT belongs to the top of the industry, outperforming 87.97% of the companies in the same industry.
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.
The Return On Invested Capital of EAT (16.64%) is better than 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
EAT's Profit Margin of 7.77% is fine compared to the rest of the industry. EAT outperforms 67.67% of its industry peers.
EAT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.56%, EAT is in line with its industry, outperforming 59.40% of the companies in the same industry.
In the last couple of years the Operating Margin of EAT has declined.
EAT's Gross Margin of 18.50% is on the low side compared to the rest of the industry. EAT is outperformed by 87.22% of its industry peers.
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%
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.
EAT has more shares outstanding than it did 1 year ago.
EAT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EAT has a worse debt to assets ratio.
2.2 Solvency
EAT has an Altman-Z score of 3.85. This indicates that EAT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EAT (3.85) is better than 84.96% of its industry peers.
The Debt to FCF ratio of EAT is 1.16, which is an excellent value as it means it would take EAT, only 1.16 years of fcf income to pay off all of its debts.
EAT has a better Debt to FCF ratio (1.16) than 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.
The Debt to Equity ratio of EAT (1.53) is comparable to the rest of the 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 | 3.85 |
ROIC/WACC1.89
WACC8.82%
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.
EAT has a worse Current ratio (0.35) than 85.71% 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 84.21% 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%.
The Revenue for EAT have been decreasing by -63.21% on average. This is quite bad
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.
The Revenue is expected to decrease by -3.49% on average over the next years.
EPS Next Y17.87%
EPS Next 2Y16.53%
EPS Next 3Y13.99%
EPS Next 5YN/A
Revenue Next Year7.27%
Revenue Next 2Y6.26%
Revenue Next 3Y5.26%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.20, the valuation of EAT can be described as correct.
EAT's Price/Earnings ratio is a bit cheaper when compared to the industry. EAT is cheaper than 77.44% of the companies in the same industry.
When comparing the Price/Earnings ratio of EAT to the average of the S&P500 Index (27.19), we can say EAT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.24, the valuation of EAT can be described as correct.
Based on the Price/Forward Earnings ratio, EAT is valued cheaper than 81.20% of the companies in the same industry.
EAT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EAT is valued a bit cheaper than the industry average as 61.65% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EAT is valued cheaply inside the industry as 84.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.01 | ||
| EV/EBITDA | 10.89 |
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 13.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.91
PEG (5Y)0.43
EPS Next 2Y16.53%
EPS Next 3Y13.99%
5. Dividend
5.1 Amount
No dividends for EAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
160.01
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners112.29%
Inst Owner Change1.63%
Ins Owners1.33%
Ins Owner Change2.13%
Market Cap7.11B
Revenue(TTM)4.18B
Net Income(TTM)324.72M
Analysts77.69
Price Target166.22 (3.88%)
Short Float %11.2%
Short Ratio3.05
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)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)1.81%
PT rev (3m)-8.71%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-6.01%
EPS NY rev (1m)0.29%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 13.24 | ||
| P/S | 1.7 | ||
| P/FCF | 15.01 | ||
| P/OCF | 8.92 | ||
| P/B | 20.67 | ||
| P/tB | 53.7 | ||
| EV/EBITDA | 10.89 |
EPS(TTM)9.88
EY6.17%
EPS(NY)12.09
Fwd EY7.55%
FCF(TTM)10.66
FCFY6.66%
OCF(TTM)17.94
OCFY11.21%
SpS94.11
BVpS7.74
TBVpS2.98
PEG (NY)0.91
PEG (5Y)0.43
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 | 3.85 |
F-Score5
WACC8.82%
ROIC/WACC1.89
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 Y17.87%
EPS Next 2Y16.53%
EPS Next 3Y13.99%
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 Year7.27%
Revenue Next 2Y6.26%
Revenue Next 3Y5.26%
Revenue Next 5Y-3.49%
EBIT growth 1Y170.46%
EBIT growth 3Y-85.85%
EBIT growth 5Y-65.47%
EBIT Next Year53.72%
EBIT Next 3Y20.04%
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.
Can you provide the valuation status for BRINKER INTERNATIONAL INC?
ChartMill assigns a valuation rating of 7 / 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.
What are the PE and PB ratios of BRINKER INTERNATIONAL INC (EAT) stock?
The Price/Earnings (PE) ratio for BRINKER INTERNATIONAL INC (EAT) is 16.2 and the Price/Book (PB) ratio is 20.67.
How sustainable is the dividend of BRINKER INTERNATIONAL INC (EAT) stock?
The dividend rating of BRINKER INTERNATIONAL INC (EAT) is 0 / 10 and the dividend payout ratio is 0%.