BRINKER INTERNATIONAL INC (EAT)
US1096411004 - Common Stock
We assign a fundamental rating of 4 out of 10 to EAT. EAT was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. While EAT is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past year EAT had a positive cash flow from operations.
EAT had positive earnings in each of the past 5 years.
Each year in the past 5 years EAT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.37%, EAT belongs to the best of the industry, outperforming 80.60% of the companies in the same industry.
EAT has a better Return On Equity (1469.29%) than 100.00% of its industry peers.
The Return On Invested Capital of EAT (12.43%) is better than 79.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EAT is in line with the industry average of 10.46%.
The last Return On Invested Capital (12.43%) for EAT is above the 3 year average (8.64%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 4.11%, EAT perfoms like the industry average, outperforming 55.22% of the companies in the same industry.
EAT's Profit Margin has declined in the last couple of years.
EAT has a Operating Margin (6.77%) which is in line with its industry peers.
EAT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 14.88%, EAT is doing worse than 89.55% of the companies in the same industry.
EAT's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EAT is creating some value.
EAT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for EAT has been increased compared to 5 years ago.
Compared to 1 year ago, EAT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.23 indicates that EAT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.23, EAT is doing good in the industry, outperforming 79.85% of the companies in the same industry.
The Debt to FCF ratio of EAT is 3.78, which is a good value as it means it would take EAT, 3.78 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.78, EAT is in the better half of the industry, outperforming 79.10% of the companies in the same industry.
EAT has a Debt/Equity ratio of 63.54. This is a high value indicating a heavy dependency on external financing.
EAT has a worse Debt to Equity ratio (63.54) than 70.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 63.54 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 3.23 |
ROIC/WACC1.47
WACC8.45%
2.3 Liquidity
EAT has a Current Ratio of 0.32. 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 0.32, EAT is not doing good in the industry: 87.31% of the companies in the same industry are doing better.
A Quick Ratio of 0.26 indicates that EAT may have some problems paying its short term obligations.
With a Quick ratio value of 0.26, EAT is not doing good in the industry: 91.04% of the companies in the same industry are doing better.
| 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.
Measured over the past 5 years, EAT shows a small growth in Earnings Per Share. The EPS has been growing by 0.69% on average per year.
EAT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.39%.
The Revenue has been growing slightly by 6.53% on average over the past years.
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
EAT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.16% yearly.
Based on estimates for the next years, EAT will show a small growth in Revenue. The Revenue will grow by 0.34% on average per year.
EPS Next Y32.23%
EPS Next 2Y23.33%
EPS Next 3Y20.16%
EPS Next 5YN/A
Revenue Next Year8.86%
Revenue Next 2Y6.23%
Revenue Next 3Y5.2%
Revenue Next 5Y0.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.12, EAT can be considered very expensive at the moment.
EAT's Price/Earnings ratio is a bit cheaper when compared to the industry. EAT is cheaper than 61.94% of the companies in the same industry.
EAT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.97, EAT is valued on the expensive side.
62.69% of the companies in the same industry are more expensive than EAT, based on the Price/Forward Earnings ratio.
EAT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.12 | ||
| Fwd PE | 19.97 |
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 a bit cheaper when compared to the industry. EAT is cheaper than 71.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.61 | ||
| EV/EBITDA | 13.05 |
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.
The decent profitability rating of EAT may justify a higher PE ratio.
EAT's earnings are expected to grow with 20.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.81
PEG (5Y)37.65
EPS Next 2Y23.33%
EPS Next 3Y20.16%
5. Dividend
5.1 Amount
No dividends for EAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BRINKER INTERNATIONAL INC
NYSE:EAT (11/22/2024, 11:33:41 AM)
125.126
+1.42 (+1.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.12 | ||
| Fwd PE | 19.97 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.81
PEG (5Y)37.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 1469.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.77% | ||
| PM (TTM) | 4.11% | ||
| GM | 14.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 63.54 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)30.87%
EPS 3Y10.06%
EPS 5Y
EPS Q2Q%
EPS Next Y32.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.39%
Revenue growth 3Y9.77%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y