EL POLLO LOCO HOLDINGS INC (LOCO) Stock Fundamental Analysis
NASDAQ:LOCO • US2686031079
10.51 USD
+0.13 (+1.25%)
At close: Feb 13, 2026
10.51 USD
0 (0%)
After Hours: 2/13/2026, 8:22:01 PM
Taking everything into account, LOCO scores 5 out of 10 in our fundamental rating. LOCO was compared to 131 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on LOCO.
1. Profitability
1.1 Basic Checks
- LOCO had positive earnings in the past year.
- LOCO had a positive operating cash flow in the past year.
- Each year in the past 5 years LOCO has been profitable.
- LOCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- LOCO's Return On Assets of 4.30% is fine compared to the rest of the industry. LOCO outperforms 64.12% of its industry peers.
- With a decent Return On Equity value of 9.15%, LOCO is doing good in the industry, outperforming 67.94% of the companies in the same industry.
- LOCO's Return On Invested Capital of 5.65% is in line compared to the rest of the industry. LOCO outperforms 55.73% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LOCO is significantly below the industry average of 10.42%.
- 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
- The Profit Margin of LOCO (5.39%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of LOCO has remained more or less at the same level.
- LOCO has a Operating Margin (8.58%) which is comparable to the rest of the 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 62.60% 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
- LOCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, LOCO has less shares outstanding
- LOCO has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for LOCO has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.61, we must say that LOCO is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.61, LOCO perfoms like the industry average, outperforming 53.44% of the companies in the same 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.
- With an excellent Debt to FCF ratio value of 2.91, LOCO belongs to the best of the industry, outperforming 83.21% of the companies in the same industry.
- LOCO has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
- LOCO's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. LOCO outperforms 77.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.91 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.7
WACC8.03%
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 80.15% of its industry peers.
- LOCO has a Quick 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.
- Looking at the Quick ratio, with a value of 0.38, LOCO is doing worse than 77.86% of the companies in the same industry.
| 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
- Based on estimates for the next years, LOCO will show a small growth in Earnings Per Share. The EPS will grow by 6.03% on average per year.
- The Revenue is expected to grow by 2.45% on average over the next years.
EPS Next Y6.58%
EPS Next 2Y4.34%
EPS Next 3Y6.03%
EPS Next 5YN/A
Revenue Next Year3.59%
Revenue Next 2Y2.63%
Revenue Next 3Y2.45%
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
- With a Price/Earnings ratio of 11.18, the valuation of LOCO can be described as very reasonable.
- Based on the Price/Earnings ratio, LOCO is valued cheaply inside the industry as 87.02% of the companies are valued more expensively.
- LOCO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.97.
- Based on the Price/Forward Earnings ratio of 10.85, the valuation of LOCO can be described as reasonable.
- 85.50% of the companies in the same industry are more expensive than LOCO, based on the Price/Forward Earnings ratio.
- LOCO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 10.85 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LOCO is valued cheaply inside the industry as 90.08% of the companies are valued more expensively.
- 83.97% of the companies in the same industry are more expensive than LOCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.65 | ||
| EV/EBITDA | 6.36 |
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)1.7
PEG (5Y)3.48
EPS Next 2Y4.34%
EPS Next 3Y6.03%
5. Dividend
5.1 Amount
- LOCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
10.51
+0.13 (+1.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)03-05 2026-03-05/amc
Inst Owners92.54%
Inst Owner Change-1.71%
Ins Owners1.98%
Ins Owner Change0.24%
Market Cap314.77M
Revenue(TTM)480.81M
Net Income(TTM)25.90M
Analysts78.18
Price Target15.43 (46.81%)
Short Float %6.26%
Short Ratio7.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
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)18.45%
Min EPS beat(2)13.2%
Max EPS beat(2)23.69%
EPS beat(4)3
Avg EPS beat(4)18.25%
Min EPS beat(4)-9.13%
Max EPS beat(4)45.24%
EPS beat(8)6
Avg EPS beat(8)21.17%
EPS beat(12)10
Avg EPS beat(12)18.49%
EPS beat(16)13
Avg EPS beat(16)17.2%
Revenue beat(2)0
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-3.46%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.58%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-0.7%
Revenue beat(8)2
Avg Revenue beat(8)-0.73%
Revenue beat(12)2
Avg Revenue beat(12)-1.27%
Revenue beat(16)3
Avg Revenue beat(16)-1.1%
PT rev (1m)1.68%
PT rev (3m)2.54%
EPS NQ rev (1m)-2.5%
EPS NQ rev (3m)-6.02%
EPS NY rev (1m)-0.8%
EPS NY rev (3m)2.42%
Revenue NQ rev (1m)-0.95%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 10.85 | ||
| P/S | 0.65 | ||
| P/FCF | 14.65 | ||
| P/OCF | 7.91 | ||
| P/B | 1.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.36 |
EPS(TTM)0.94
EY8.94%
EPS(NY)0.97
Fwd EY9.22%
FCF(TTM)0.72
FCFY6.83%
OCF(TTM)1.33
OCFY12.64%
SpS16.05
BVpS9.45
TBVpS-0.92
PEG (NY)1.7
PEG (5Y)3.48
Graham Number14.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.3% | ||
| ROE | 9.15% | ||
| ROCE | 7.74% | ||
| ROIC | 5.65% | ||
| ROICexc | 5.77% | ||
| ROICexgc | 14.24% | ||
| OM | 8.58% | ||
| PM (TTM) | 5.39% | ||
| GM | 53.19% | ||
| FCFM | 4.47% |
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 | 0.22 | ||
| Debt/FCF | 2.91 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 116.27% | ||
| Cap/Sales | 3.81% | ||
| Interest Coverage | 9.06 | ||
| Cash Conversion | 69.85% | ||
| Profit Quality | 82.96% | ||
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z | 1.61 |
F-Score8
WACC8.03%
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)10.59%
EPS 3Y1.15%
EPS 5Y3.21%
EPS Q2Q%28.57%
EPS Next Y6.58%
EPS Next 2Y4.34%
EPS Next 3Y6.03%
EPS Next 5YN/A
Revenue 1Y (TTM)2.09%
Revenue growth 3Y1.35%
Revenue growth 5Y1.35%
Sales Q2Q%0.93%
Revenue Next Year3.59%
Revenue Next 2Y2.63%
Revenue Next 3Y2.45%
Revenue Next 5YN/A
EBIT growth 1Y1.36%
EBIT growth 3Y-2.01%
EBIT growth 5Y1.69%
EBIT Next Year59.6%
EBIT Next 3Y18.44%
EBIT Next 5YN/A
FCF growth 1Y-20.27%
FCF growth 3Y-7.55%
FCF growth 5Y6%
OCF growth 1Y-19.02%
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 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 11.18 and the Price/Book (PB) ratio is 1.11.
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%.