BRINKER INTERNATIONAL INC (EAT) Fundamental Analysis & Valuation
NYSE:EAT • US1096411004
Current stock price
155.13 USD
+0.26 (+0.17%)
At close:
155.13 USD
0 (0%)
After Hours:
This EAT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. EAT Profitability Analysis
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 4 of the past 5 years.
- EAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- EAT's Return On Assets of 12.18% is amongst the best of the industry. EAT outperforms 88.10% of its industry peers.
- The Return On Equity of EAT (88.25%) is better than 95.24% of its industry peers.
- EAT's Return On Invested Capital of 16.80% is amongst the best of the industry. EAT outperforms 85.71% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EAT is significantly below the industry average of 10.56%.
- The last Return On Invested Capital (16.80%) for EAT is above the 3 year average (2.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.18% | ||
| ROE | 88.25% | ||
| ROIC | 16.8% |
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
- Looking at the Profit Margin, with a value of 7.83%, EAT is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
- EAT's Profit Margin has declined in the last couple of years.
- The Operating Margin of EAT (10.35%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of EAT has declined.
- EAT's Gross Margin of 18.43% is on the low side compared to the rest of the industry. EAT is outperformed by 88.89% of its industry peers.
- EAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.35% | ||
| PM (TTM) | 7.83% | ||
| GM | 18.43% |
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. EAT Health Analysis
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.
- Compared to 1 year ago, EAT has more shares outstanding
- Compared to 5 years ago, EAT has less shares outstanding
- EAT has a worse debt/assets ratio than last year.
2.2 Solvency
- EAT has an Altman-Z score of 3.82. This indicates that EAT is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of EAT (3.82) is better than 84.13% of its industry peers.
- EAT has a debt to FCF ratio of 1.05. This is a very positive value and a sign of high solvency as it would only need 1.05 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 1.05, EAT belongs to the best of the industry, outperforming 89.68% of the companies in the same industry.
- EAT has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.19, EAT perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
- Although EAT's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 | 1.19 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 3.82 |
ROIC/WACC1.88
WACC8.95%
2.3 Liquidity
- A Current Ratio of 0.36 indicates that EAT may have some problems paying its short term obligations.
- EAT has a worse Current ratio (0.36) than 88.10% of its industry peers.
- A Quick Ratio of 0.31 indicates that EAT may have some problems paying its short term obligations.
- EAT has a Quick ratio of 0.31. This is amonst the worse of the industry: EAT underperforms 86.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.31 |
3. EAT Growth Analysis
3.1 Past
- EAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.76%, which is quite impressive.
- EAT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.36% yearly.
- Looking at the last year, EAT shows a very strong growth in Revenue. The Revenue has grown by 65.25%.
- Measured over the past years, EAT shows a very negative growth in Revenue. The Revenue has been decreasing by -63.21% on average per year.
EPS 1Y (TTM)50.76%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%2.5%
Revenue 1Y (TTM)65.25%
Revenue growth 3Y-82.4%
Revenue growth 5Y-63.21%
Sales Q2Q%6.92%
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 14.71% yearly.
- Based on estimates for the next years, EAT will show a small growth in Revenue. The Revenue will grow by 6.00% on average per year.
EPS Next Y21.41%
EPS Next 2Y18.22%
EPS Next 3Y15.07%
EPS Next 5Y14.71%
Revenue Next Year8.36%
Revenue Next 2Y6.91%
Revenue Next 3Y5.64%
Revenue Next 5Y6%
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. EAT Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 15.59, the valuation of EAT can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of EAT indicates a somewhat cheap valuation: EAT is cheaper than 77.78% of the companies listed in the same industry.
- EAT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.78, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 12.47, EAT is valued correctly.
- 79.37% 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 (23.54), we can say EAT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.59 | ||
| Fwd PE | 12.47 |
4.2 Price Multiples
- EAT's Enterprise Value to EBITDA ratio is in line with the industry average.
- 84.92% 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 | 14.82 | ||
| EV/EBITDA | 10.87 |
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 15.07% in the coming years.
PEG (NY)0.73
PEG (5Y)0.42
EPS Next 2Y18.22%
EPS Next 3Y15.07%
5. EAT Dividend Analysis
5.1 Amount
- EAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EAT Fundamentals: All Metrics, Ratios and Statistics
155.13
+0.26 (+0.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)01-28 2026-01-28/bmo
Earnings (Next)04-27 2026-04-27/bmo
Inst Owners114.9%
Inst Owner Change0%
Ins Owners1.14%
Ins Owner Change-5.9%
Market Cap6.76B
Revenue(TTM)4.28B
Net Income(TTM)334.72M
Analysts80.71
Price Target190.47 (22.78%)
Short Float %10.05%
Short Ratio3.28
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)7.97%
Min EPS beat(2)7.76%
Max EPS beat(2)8.18%
EPS beat(4)4
Avg EPS beat(4)4.87%
Min EPS beat(4)0.67%
Max EPS beat(4)8.18%
EPS beat(8)7
Avg EPS beat(8)13.58%
EPS beat(12)11
Avg EPS beat(12)41.88%
EPS beat(16)13
Avg EPS beat(16)33.8%
Revenue beat(2)2
Avg Revenue beat(2)0.86%
Min Revenue beat(2)0.31%
Max Revenue beat(2)1.41%
Revenue beat(4)4
Avg Revenue beat(4)0.99%
Min Revenue beat(4)0.31%
Max Revenue beat(4)1.58%
Revenue beat(8)7
Avg Revenue beat(8)2.1%
Revenue beat(12)7
Avg Revenue beat(12)1.09%
Revenue beat(16)9
Avg Revenue beat(16)0.92%
PT rev (1m)-0.86%
PT rev (3m)13.84%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-0.88%
EPS NY rev (1m)0%
EPS NY rev (3m)3%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.59 | ||
| Fwd PE | 12.47 | ||
| P/S | 1.58 | ||
| P/FCF | 14.82 | ||
| P/OCF | 9.16 | ||
| P/B | 17.81 | ||
| P/tB | 40.17 | ||
| EV/EBITDA | 10.87 |
EPS(TTM)9.95
EY6.41%
EPS(NY)12.44
Fwd EY8.02%
FCF(TTM)10.47
FCFY6.75%
OCF(TTM)16.94
OCFY10.92%
SpS98.17
BVpS8.71
TBVpS3.86
PEG (NY)0.73
PEG (5Y)0.42
Graham Number44.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.18% | ||
| ROE | 88.25% | ||
| ROCE | 21.27% | ||
| ROIC | 16.8% | ||
| ROICexc | 16.93% | ||
| ROICexgc | 18.85% | ||
| OM | 10.35% | ||
| PM (TTM) | 7.83% | ||
| GM | 18.43% | ||
| FCFM | 10.66% |
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-Score9
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 1.05 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 127.63% | ||
| Cap/Sales | 6.59% | ||
| Interest Coverage | 10.38 | ||
| Cash Conversion | 111.25% | ||
| Profit Quality | 136.2% | ||
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 3.82 |
F-Score9
WACC8.95%
ROIC/WACC1.88
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)50.76%
EPS 3Y41.82%
EPS 5Y37.36%
EPS Q2Q%2.5%
EPS Next Y21.41%
EPS Next 2Y18.22%
EPS Next 3Y15.07%
EPS Next 5Y14.71%
Revenue 1Y (TTM)65.25%
Revenue growth 3Y-82.4%
Revenue growth 5Y-63.21%
Sales Q2Q%6.92%
Revenue Next Year8.36%
Revenue Next 2Y6.91%
Revenue Next 3Y5.64%
Revenue Next 5Y6%
EBIT growth 1Y66.51%
EBIT growth 3Y-85.85%
EBIT growth 5Y-65.47%
EBIT Next Year55.95%
EBIT Next 3Y20.76%
EBIT Next 5Y16.3%
FCF growth 1Y185.83%
FCF growth 3Y-71.42%
FCF growth 5Y-55.77%
OCF growth 1Y117.87%
OCF growth 3Y-77.72%
OCF growth 5Y-59.15%
BRINKER INTERNATIONAL INC / EAT Fundamental Analysis FAQ
What is the fundamental rating for EAT stock?
ChartMill assigns a fundamental rating of 5 / 10 to EAT.
What is the valuation status of BRINKER INTERNATIONAL INC (EAT) stock?
ChartMill assigns a valuation rating of 6 / 10 to BRINKER INTERNATIONAL INC (EAT). This can be considered as Fairly Valued.
What is the profitability of EAT stock?
BRINKER INTERNATIONAL INC (EAT) has a profitability rating of 6 / 10.
Can you provide the financial health for EAT stock?
The financial health rating of BRINKER INTERNATIONAL INC (EAT) is 5 / 10.
Is the dividend of BRINKER INTERNATIONAL INC sustainable?
The dividend rating of BRINKER INTERNATIONAL INC (EAT) is 0 / 10 and the dividend payout ratio is 0%.