10.15 USD
-0.07 (-0.68%)
10.15 USD
0 (0%)
Taking everything into account, LOCO scores 5 out of 10 in our fundamental rating. LOCO was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. LOCO has only an average score on both its financial health and profitability. LOCO scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
- In the past 5 years LOCO has always been profitable.
- LOCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of LOCO (4.30%) is better than 64.39% of its industry peers.
- The Return On Equity of LOCO (9.15%) is better than 68.18% of its industry peers.
- LOCO has a Return On Invested Capital (5.65%) which is in line with its industry peers.
- LOCO had an Average Return On Invested Capital over the past 3 years of 5.08%. This is significantly below the industry average of 10.37%.
- The last Return On Invested Capital (5.65%) for LOCO is above the 3 year average (5.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.3% | ||
| ROE | 9.15% | ||
| ROIC | 5.65% |
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
- Looking at the Profit Margin, with a value of 5.39%, LOCO is in line with its industry, outperforming 59.85% of the companies in the same industry.
- In the last couple of years the Profit Margin of LOCO has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 8.58%, LOCO is in line with its industry, outperforming 53.03% of the companies in the same industry.
- 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 53.19%, LOCO is in the better half of the industry, outperforming 62.88% 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 | 8.58% | ||
| PM (TTM) | 5.39% | ||
| GM | 53.19% |
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.
- Compared to 1 year ago, LOCO has less shares outstanding
- The number of shares outstanding for LOCO has been reduced compared to 5 years ago.
- The debt/assets ratio for LOCO has been reduced compared to a year ago.
2.2 Solvency
- LOCO has an Altman-Z score of 1.60. This is a bad value and indicates that LOCO is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of LOCO (1.60) is comparable to the rest of the industry.
- LOCO has a debt to FCF ratio of 2.91. This is a good value and a sign of high solvency as LOCO would need 2.91 years to pay back of all of its debts.
- LOCO has a better Debt to FCF ratio (2.91) than 83.33% of its industry peers.
- A Debt/Equity ratio of 0.22 indicates that LOCO is not too dependend on debt financing.
- LOCO's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. LOCO outperforms 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.91 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.69
WACC8.18%
2.3 Liquidity
- LOCO has a Current Ratio of 0.41. This is a bad value and indicates that LOCO is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of LOCO (0.41) is worse than 80.30% of its industry peers.
- A Quick Ratio of 0.38 indicates that LOCO may have some problems paying its short term obligations.
- The Quick ratio of LOCO (0.38) is worse than 78.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
- LOCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.59%, which is quite good.
- LOCO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.21% yearly.
- The Revenue has been growing slightly by 2.09% in the past year.
- Measured over the past years, LOCO shows a small growth in Revenue. The Revenue has been growing by 1.35% on average per year.
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 6.53% yearly.
- Based on estimates for the next years, LOCO will show a small growth in Revenue. The Revenue will grow by 2.33% on average per year.
EPS Next Y6.87%
EPS Next 2Y4.62%
EPS Next 3Y6.53%
EPS Next 5YN/A
Revenue Next Year3.62%
Revenue Next 2Y2.62%
Revenue Next 3Y2.33%
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 accelerating.
- 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 10.80 indicates a reasonable valuation of LOCO.
- Based on the Price/Earnings ratio, LOCO is valued cheaper than 90.15% of the companies in the same industry.
- LOCO is valuated cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 10.42, the valuation of LOCO can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, LOCO is valued cheaply inside the industry as 87.12% of the companies are valued more expensively.
- LOCO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.8 | ||
| Fwd PE | 10.42 |
4.2 Price Multiples
- 90.15% of the companies in the same industry are more expensive than LOCO, based on the Enterprise Value to EBITDA ratio.
- LOCO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LOCO is cheaper than 84.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.15 | ||
| EV/EBITDA | 6.24 |
4.3 Compensation for Growth
- LOCO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of LOCO may justify a higher PE ratio.
PEG (NY)1.57
PEG (5Y)3.37
EPS Next 2Y4.62%
EPS Next 3Y6.53%
5. Dividend
5.1 Amount
- LOCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 of EL POLLO LOCO HOLDINGS INC (LOCO) stock?
ChartMill assigns a valuation rating of 8 / 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.
Can you provide the PE and PB ratios for LOCO stock?
The Price/Earnings (PE) ratio for EL POLLO LOCO HOLDINGS INC (LOCO) is 10.8 and the Price/Book (PB) ratio is 1.07.
Can you provide the dividend sustainability for LOCO stock?
The dividend rating of EL POLLO LOCO HOLDINGS INC (LOCO) is 0 / 10 and the dividend payout ratio is 0%.