EL POLLO LOCO HOLDINGS INC (LOCO) Stock Fundamental Analysis
USA - NASDAQ:LOCO - US2686031079 - Common Stock
10.57 USD
-0.23 (-2.13%)
10.57 USD
0 (0%)
LOCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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
With a decent Return On Assets value of 4.14%, LOCO is doing good in the industry, outperforming 62.12% of the companies in the same industry.
The Return On Equity of LOCO (9.02%) is better than 64.39% of its industry peers.
LOCO has a Return On Invested Capital (5.62%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for LOCO is significantly below the industry average of 10.74%.
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's Profit Margin of 5.15% is in line compared to the rest of the industry. LOCO outperforms 56.82% of its industry peers.
LOCO's Profit Margin has been stable in the last couple of years.
LOCO has a Operating Margin of 8.34%. This is comparable to the rest of the industry: LOCO outperforms 49.24% of its industry peers.
In the last couple of years the Operating Margin of LOCO has remained more or less at the same level.
LOCO has a better Gross Margin (52.54%) than 62.88% of its industry peers.
In the last couple of years the Gross Margin of LOCO has remained more or less at the same level.
| 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
LOCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
LOCO has less shares outstanding than it did 1 year ago.
LOCO has less shares outstanding than it did 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 1.60, we must say that LOCO is in the distress zone and has some risk of bankruptcy.
LOCO's Altman-Z score of 1.60 is in line compared to the rest of the industry. LOCO outperforms 51.52% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 3.41, LOCO belongs to the best of the industry, outperforming 80.30% of the companies in the same industry.
A Debt/Equity ratio of 0.26 indicates that LOCO is not too dependend on debt financing.
LOCO's Debt to Equity ratio of 0.26 is fine compared to the rest of the industry. LOCO outperforms 76.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.69
WACC8.09%
2.3 Liquidity
LOCO has a Current 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.
With a Current ratio value of 0.35, LOCO is not doing good in the industry: 86.36% of the companies in the same industry are doing better.
A Quick Ratio of 0.33 indicates that LOCO may have some problems paying its short term obligations.
LOCO's Quick ratio of 0.33 is on the low side compared to the rest of the industry. LOCO is outperformed by 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.59% over the past year.
The Earnings Per Share has been growing slightly by 3.21% on average over the past years.
Looking at the last year, LOCO shows a small growth in Revenue. The Revenue has grown by 2.09% in the last year.
The Revenue has been growing slightly by 1.35% on average over the past years.
EPS 1Y (TTM)10.59%
EPS 3Y1.15%
EPS 5Y3.21%
EPS Q2Q%28.57%
Revenue 1Y (TTM)2.09%
Revenue growth 3Y1.35%
Revenue growth 5Y1.35%
Sales Q2Q%0.93%
3.2 Future
LOCO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.89% yearly.
Based on estimates for the next years, LOCO will show a small growth in Revenue. The Revenue will grow by 2.74% on average per year.
EPS Next Y4.06%
EPS Next 2Y4.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.85%
Revenue Next 2Y2.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
The Price/Earnings ratio is 11.24, which indicates a very decent 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 84.85% of the companies listed in the same industry.
LOCO is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.79, the valuation of LOCO can be described as reasonable.
LOCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. LOCO is cheaper than 83.33% of the companies in the same industry.
LOCO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.24 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LOCO is valued cheaply inside the industry as 84.09% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LOCO indicates a rather cheap valuation: LOCO is cheaper than 81.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.31 | ||
| EV/EBITDA | 6.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of LOCO may justify a higher PE ratio.
PEG (NY)2.77
PEG (5Y)3.5
EPS Next 2Y4.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LOCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.57
-0.23 (-2.13%)
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-0.31%
Market Cap317.10M
Revenue(TTM)480.81M
Net Income(TTM)24.73M
Analysts78.18
Price Target15.05 (42.38%)
Short Float %6.96%
Short Ratio9.91
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)-0.93%
EPS NQ rev (3m)-2.73%
EPS NY rev (1m)2.71%
EPS NY rev (3m)5.89%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.24 | ||
| Fwd PE | 10.79 | ||
| P/S | 0.66 | ||
| P/FCF | 15.31 | ||
| P/OCF | 8.45 | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.91 |
EPS(TTM)0.94
EY8.89%
EPS(NY)0.98
Fwd EY9.26%
FCF(TTM)0.69
FCFY6.53%
OCF(TTM)1.25
OCFY11.84%
SpS15.99
BVpS9.14
TBVpS-1.21
PEG (NY)2.77
PEG (5Y)3.5
Graham Number13.9
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 | 1.6 |
F-Score8
WACC8.09%
ROIC/WACC0.69
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)10.59%
EPS 3Y1.15%
EPS 5Y3.21%
EPS Q2Q%28.57%
EPS Next Y4.06%
EPS Next 2Y4.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.09%
Revenue growth 3Y1.35%
Revenue growth 5Y1.35%
Sales Q2Q%0.93%
Revenue Next Year3.85%
Revenue Next 2Y2.74%
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 11.24 and the Price/Book (PB) ratio is 1.16.
How financially healthy is EL POLLO LOCO HOLDINGS INC?
The financial health rating of EL POLLO LOCO HOLDINGS INC (LOCO) is 4 / 10.