BRINKER INTERNATIONAL INC (EAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EAT - US1096411004 - Common Stock
151.05 USD
+1.61 (+1.08%)
151.05 USD
0 (0%)
EAT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. EAT has an average financial health and profitability rating. 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
In the past year EAT was profitable.
EAT had a positive operating cash flow in the past year.
Of the past 5 years EAT 4 years were profitable.
Each year in the past 5 years EAT had a positive operating cash flow.
1.2 Ratios
EAT has a better Return On Assets (11.97%) than 87.97% of its industry peers.
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.
EAT has a better Return On Invested Capital (16.64%) than 84.96% of its industry peers.
EAT had an Average Return On Invested Capital over the past 3 years of 2.53%. This is significantly below the industry average of 10.41%.
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 has a Profit Margin of 7.77%. This is in the better half of the industry: EAT outperforms 66.17% of its industry peers.
EAT's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 10.56%, EAT perfoms like the industry average, outperforming 59.40% of the companies in the same industry.
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 87.97% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EAT is creating value.
The number of shares outstanding for EAT has been increased compared to 1 year ago.
Compared to 5 years ago, EAT has less shares outstanding
The debt/assets ratio for EAT is higher compared to a year ago.
2.2 Solvency
EAT has an Altman-Z score of 3.73. This indicates that EAT is financially healthy and has little risk of bankruptcy at the moment.
EAT has a better Altman-Z score (3.73) than 81.95% 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.
With an excellent Debt to FCF ratio value of 1.16, EAT belongs to the best of the industry, outperforming 90.23% of the companies in the same industry.
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 | 3.73 |
ROIC/WACC1.89
WACC8.81%
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.
Looking at the Current ratio, with a value of 0.35, EAT is doing worse than 86.47% of the companies in the same industry.
A Quick Ratio of 0.29 indicates that EAT may have some problems paying its short term obligations.
EAT has a Quick ratio of 0.29. This is amonst the worse of the industry: EAT underperforms 85.71% 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.
The Earnings Per Share has been growing by 37.36% on average over the past years. This is a very strong growth
Looking at the last year, EAT shows a very strong growth in Revenue. 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
EAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.98% yearly.
The Revenue is expected to decrease by -3.49% on average over the next years.
EPS Next Y17.53%
EPS Next 2Y16.29%
EPS Next 3Y13.98%
EPS Next 5YN/A
Revenue Next Year7.14%
Revenue Next 2Y6.15%
Revenue Next 3Y5.23%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EAT is valuated correctly with a Price/Earnings ratio of 15.29.
EAT's Price/Earnings ratio is a bit cheaper when compared to the industry. EAT is cheaper than 78.20% of the companies in the same industry.
When comparing the Price/Earnings ratio of EAT to the average of the S&P500 Index (26.61), we can say EAT is valued slightly cheaper.
The Price/Forward Earnings ratio is 12.55, which indicates a correct valuation of EAT.
EAT's Price/Forward Earnings ratio is rather cheap when compared to the industry. EAT is cheaper than 82.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.01. EAT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.29 | ||
| Fwd PE | 12.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EAT indicates a somewhat cheap valuation: EAT is cheaper than 64.66% of the companies listed in the same industry.
EAT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EAT is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.17 | ||
| EV/EBITDA | 10.22 |
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.
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 13.98% in the coming years.
PEG (NY)0.87
PEG (5Y)0.41
EPS Next 2Y16.29%
EPS Next 3Y13.98%
5. Dividend
5.1 Amount
EAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
151.05
+1.61 (+1.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners112.26%
Inst Owner Change2.45%
Ins Owners1.34%
Ins Owner Change2.13%
Market Cap6.71B
Revenue(TTM)4.18B
Net Income(TTM)324.72M
Analysts77.69
Price Target163.27 (8.09%)
Short Float %12.96%
Short Ratio3.41
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)-5.13%
PT rev (3m)-10.02%
EPS NQ rev (1m)0.85%
EPS NQ rev (3m)-6.09%
EPS NY rev (1m)0.76%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.29 | ||
| Fwd PE | 12.55 | ||
| P/S | 1.61 | ||
| P/FCF | 14.17 | ||
| P/OCF | 8.42 | ||
| P/B | 19.51 | ||
| P/tB | 50.69 | ||
| EV/EBITDA | 10.22 |
EPS(TTM)9.88
EY6.54%
EPS(NY)12.04
Fwd EY7.97%
FCF(TTM)10.66
FCFY7.06%
OCF(TTM)17.94
OCFY11.88%
SpS94.11
BVpS7.74
TBVpS2.98
PEG (NY)0.87
PEG (5Y)0.41
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 | 3.73 |
F-Score5
WACC8.81%
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 Y17.53%
EPS Next 2Y16.29%
EPS Next 3Y13.98%
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 Year7.14%
Revenue Next 2Y6.15%
Revenue Next 3Y5.23%
Revenue Next 5Y-3.49%
EBIT growth 1Y170.46%
EBIT growth 3Y-85.85%
EBIT growth 5Y-65.47%
EBIT Next Year53.3%
EBIT Next 3Y19.83%
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 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.
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%.