EL POLLO LOCO HOLDINGS INC (LOCO) Stock Fundamental Analysis
USA - NASDAQ:LOCO - US2686031079 - Common Stock
9.48 USD
+0.09 (+0.96%)
Taking everything into account, LOCO scores 5 out of 10 in our fundamental rating. LOCO was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of LOCO get a neutral evaluation. Nothing too spectacular is happening here. LOCO is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year LOCO was profitable.
In the past year LOCO had a positive cash flow from operations.
LOCO had positive earnings in each of the past 5 years.
In the past 5 years LOCO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LOCO (4.14%) is better than 61.19% of its industry peers.
LOCO has a better Return On Equity (9.02%) than 66.42% of its industry peers.
LOCO has a Return On Invested Capital (5.62%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for LOCO is significantly below the industry average of 10.67%.
The last Return On Invested Capital (5.62%) for LOCO is above the 3 year average (5.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 9.02% | ||
| ROIC | 5.62% |
ROA(3y)4.05%
ROA(5y)4.18%
ROE(3y)9.15%
ROE(5y)9.13%
ROIC(3y)5.08%
ROIC(5y)5.31%
1.3 Margins
LOCO has a Profit Margin of 5.15%. This is comparable to the rest of the industry: LOCO outperforms 55.22% of its industry peers.
LOCO's Profit Margin has been stable in the last couple of years.
LOCO's Operating Margin of 8.34% is in line compared to the rest of the industry. LOCO outperforms 49.25% of its industry peers.
In the last couple of years the Operating Margin of LOCO has remained more or less at the same level.
Looking at the Gross Margin, with a value of 52.54%, LOCO is in the better half of the industry, outperforming 62.69% of the companies in the same industry.
LOCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.34% | ||
| PM (TTM) | 5.15% | ||
| GM | 52.54% |
OM growth 3Y-3.32%
OM growth 5Y0.33%
PM growth 3Y-5.35%
PM growth 5Y-0.72%
GM growth 3Y0.83%
GM growth 5Y1.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LOCO is destroying value.
LOCO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for LOCO has been reduced compared to 5 years ago.
Compared to 1 year ago, LOCO has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.52, we must say that LOCO is in the distress zone and has some risk of bankruptcy.
LOCO has a Altman-Z score (1.52) which is comparable to the rest of the industry.
LOCO has a debt to FCF ratio of 3.41. This is a good value and a sign of high solvency as LOCO would need 3.41 years to pay back of all of its debts.
LOCO's Debt to FCF ratio of 3.41 is fine compared to the rest of the industry. LOCO outperforms 79.10% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that LOCO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.26, LOCO is in the better half of the industry, outperforming 75.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.7
WACC7.99%
2.3 Liquidity
A Current Ratio of 0.35 indicates that LOCO may have some problems paying its short term obligations.
LOCO's Current ratio of 0.35 is on the low side compared to the rest of the industry. LOCO is outperformed by 85.07% of its industry peers.
LOCO has a Quick Ratio of 0.35. This is a bad value and indicates that LOCO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.33, LOCO is doing worse than 81.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
LOCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.02%.
LOCO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.21% yearly.
Looking at the last year, LOCO shows a small growth in Revenue. The Revenue has grown by 1.85% in the last year.
LOCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.35% yearly.
EPS 1Y (TTM)6.02%
EPS 3Y1.15%
EPS 5Y3.21%
EPS Q2Q%7.69%
Revenue 1Y (TTM)1.85%
Revenue growth 3Y1.35%
Revenue growth 5Y1.35%
Sales Q2Q%2.99%
3.2 Future
LOCO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.46% yearly.
Based on estimates for the next years, LOCO will show a small growth in Revenue. The Revenue will grow by 3.00% on average per year.
EPS Next Y1.31%
EPS Next 2Y3.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.5%
Revenue Next 2Y3%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 stable.
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
A Price/Earnings ratio of 10.77 indicates a reasonable valuation of LOCO.
Compared to the rest of the industry, the Price/Earnings ratio of LOCO indicates a rather cheap valuation: LOCO is cheaper than 92.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.83, LOCO is valued rather cheaply.
A Price/Forward Earnings ratio of 9.95 indicates a reasonable valuation of LOCO.
Based on the Price/Forward Earnings ratio, LOCO is valued cheaply inside the industry as 88.81% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LOCO to the average of the S&P500 Index (22.82), we can say LOCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 9.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LOCO indicates a rather cheap valuation: LOCO is cheaper than 88.81% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LOCO is valued cheaper than 84.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.73 | ||
| EV/EBITDA | 6.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LOCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.21
PEG (5Y)3.36
EPS Next 2Y3.46%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LOCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:LOCO (10/24/2025, 1:03:57 PM)
9.48
+0.09 (+0.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners93.3%
Inst Owner Change-0.07%
Ins Owners2.65%
Ins Owner Change-0.34%
Market Cap284.40M
Revenue(TTM)479.69M
Net Income(TTM)24.73M
Analysts78.18
Price Target15.05 (58.76%)
Short Float %7.71%
Short Ratio9.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.03%
Min EPS beat(2)-9.13%
Max EPS beat(2)13.2%
EPS beat(4)3
Avg EPS beat(4)18.06%
Min EPS beat(4)-9.13%
Max EPS beat(4)45.24%
EPS beat(8)6
Avg EPS beat(8)18.29%
EPS beat(12)10
Avg EPS beat(12)17.56%
EPS beat(16)13
Avg EPS beat(16)16.99%
Revenue beat(2)0
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)-0.7%
Revenue beat(8)2
Avg Revenue beat(8)-0.59%
Revenue beat(12)3
Avg Revenue beat(12)-0.85%
Revenue beat(16)3
Avg Revenue beat(16)-1.3%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.69%
EPS NY rev (1m)0%
EPS NY rev (3m)3.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 9.95 | ||
| P/S | 0.59 | ||
| P/FCF | 13.73 | ||
| P/OCF | 7.58 | ||
| P/B | 1.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.15 |
EPS(TTM)0.88
EY9.28%
EPS(NY)0.95
Fwd EY10.05%
FCF(TTM)0.69
FCFY7.28%
OCF(TTM)1.25
OCFY13.2%
SpS15.99
BVpS9.14
TBVpS-1.21
PEG (NY)8.21
PEG (5Y)3.36
Graham Number13.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 9.02% | ||
| ROCE | 7.7% | ||
| ROIC | 5.62% | ||
| ROICexc | 5.72% | ||
| ROICexgc | 14.58% | ||
| OM | 8.34% | ||
| PM (TTM) | 5.15% | ||
| GM | 52.54% | ||
| FCFM | 4.32% |
ROA(3y)4.05%
ROA(5y)4.18%
ROE(3y)9.15%
ROE(5y)9.13%
ROIC(3y)5.08%
ROIC(5y)5.31%
ROICexc(3y)5.17%
ROICexc(5y)5.47%
ROICexgc(3y)13.16%
ROICexgc(5y)13.82%
ROCE(3y)6.96%
ROCE(5y)7.28%
ROICexgc growth 3Y-2.78%
ROICexgc growth 5Y4.42%
ROICexc growth 3Y-2.31%
ROICexc growth 5Y2.81%
OM growth 3Y-3.32%
OM growth 5Y0.33%
PM growth 3Y-5.35%
PM growth 5Y-0.72%
GM growth 3Y0.83%
GM growth 5Y1.16%
F-Score8
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.41 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 106.38% | ||
| Cap/Sales | 3.51% | ||
| Interest Coverage | 7.78 | ||
| Cash Conversion | 67.22% | ||
| Profit Quality | 83.77% | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 1.52 |
F-Score8
WACC7.99%
ROIC/WACC0.7
Cap/Depr(3y)133.19%
Cap/Depr(5y)110.29%
Cap/Sales(3y)4.27%
Cap/Sales(5y)3.63%
Profit Quality(3y)91.05%
Profit Quality(5y)106.37%
High Growth Momentum
Growth
EPS 1Y (TTM)6.02%
EPS 3Y1.15%
EPS 5Y3.21%
EPS Q2Q%7.69%
EPS Next Y1.31%
EPS Next 2Y3.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.85%
Revenue growth 3Y1.35%
Revenue growth 5Y1.35%
Sales Q2Q%2.99%
Revenue Next Year4.5%
Revenue Next 2Y3%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-0.28%
EBIT growth 3Y-2.01%
EBIT growth 5Y1.69%
EBIT Next Year56.86%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-26.54%
FCF growth 3Y-7.55%
FCF growth 5Y6%
OCF growth 1Y-22.65%
OCF growth 3Y-3.53%
OCF growth 5Y5.3%
EL POLLO LOCO HOLDINGS INC / LOCO FAQ
What is the ChartMill fundamental rating of EL POLLO LOCO HOLDINGS INC (LOCO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to LOCO.
What is the valuation status for LOCO stock?
ChartMill assigns a valuation rating of 7 / 10 to EL POLLO LOCO HOLDINGS INC (LOCO). This can be considered as Undervalued.
What is the profitability of LOCO stock?
EL POLLO LOCO HOLDINGS INC (LOCO) has a profitability rating of 6 / 10.
What are the PE and PB ratios of EL POLLO LOCO HOLDINGS INC (LOCO) stock?
The Price/Earnings (PE) ratio for EL POLLO LOCO HOLDINGS INC (LOCO) is 10.77 and the Price/Book (PB) ratio is 1.04.
How financially healthy is EL POLLO LOCO HOLDINGS INC?
The financial health rating of EL POLLO LOCO HOLDINGS INC (LOCO) is 4 / 10.