EL POLLO LOCO HOLDINGS INC (LOCO) Stock Fundamental Analysis
USA - NASDAQ:LOCO - US2686031079 - Common Stock
10.17 USD
-0.4 (-3.78%)
10.17 USD
0 (0%)
Overall LOCO gets a fundamental rating of 5 out of 10. We evaluated LOCO against 132 industry peers in the Hotels, Restaurants & Leisure industry. LOCO has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on LOCO.
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.
Each year in the past 5 years LOCO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LOCO (4.30%) is better than 62.88% of its industry peers.
LOCO's Return On Equity of 9.15% is fine compared to the rest of the industry. LOCO outperforms 65.15% of its industry peers.
LOCO has a Return On Invested Capital (5.65%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for LOCO is significantly below the industry average of 10.59%.
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
LOCO's Profit Margin of 5.39% 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 8.58%. This is comparable to the rest of the industry: LOCO outperforms 51.52% of its industry peers.
LOCO's Operating Margin has been stable in the last couple of years.
LOCO has a better Gross Margin (53.19%) 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 | 8.58% | ||
| 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.
The number of shares outstanding for LOCO has been reduced compared to 1 year ago.
The number of shares outstanding for LOCO has been reduced compared to 5 years ago.
LOCO has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.62, we must say that LOCO is in the distress zone and has some risk of bankruptcy.
LOCO has a Altman-Z score (1.62) which is in line with its industry peers.
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 81.06% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that LOCO is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.22, LOCO is doing good in the industry, outperforming 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.91 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.7
WACC8.09%
2.3 Liquidity
A Current Ratio of 0.41 indicates that LOCO may have some problems paying its short term obligations.
With a Current ratio value of 0.41, LOCO is not doing good in the industry: 82.58% of the companies in the same industry are doing better.
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.
LOCO has a worse Quick ratio (0.38) than 79.55% 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.
Measured over the past 5 years, LOCO shows a small growth in Earnings Per Share. The EPS has been growing by 3.21% on average per year.
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
The Earnings Per Share is expected to grow by 4.89% on average over the next years.
The Revenue is expected to grow by 2.74% on average over the next years.
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
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
With a Price/Earnings ratio of 10.82, the valuation of LOCO can be described as very reasonable.
Based on the Price/Earnings ratio, LOCO is valued cheaper than 85.61% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.56. LOCO is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.39 indicates a reasonable valuation of LOCO.
Based on the Price/Forward Earnings ratio, LOCO is valued cheaply inside the industry as 83.33% 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 34.62.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 10.39 |
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 88.64% of the companies listed in the same industry.
82.58% 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 | 14.2 | ||
| EV/EBITDA | 6.47 |
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)2.66
PEG (5Y)3.37
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 |
10.17
-0.4 (-3.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners93.3%
Inst Owner Change-0.96%
Ins Owners2.65%
Ins Owner Change-0.26%
Market Cap305.10M
Revenue(TTM)480.81M
Net Income(TTM)25.90M
Analysts78.18
Price Target15.05 (47.98%)
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)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)0%
PT rev (3m)0%
EPS NQ rev (1m)0.73%
EPS NQ rev (3m)-1.19%
EPS NY rev (1m)2.71%
EPS NY rev (3m)5.89%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 10.39 | ||
| P/S | 0.63 | ||
| P/FCF | 14.2 | ||
| P/OCF | 7.67 | ||
| P/B | 1.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.47 |
EPS(TTM)0.94
EY9.24%
EPS(NY)0.98
Fwd EY9.63%
FCF(TTM)0.72
FCFY7.04%
OCF(TTM)1.33
OCFY13.05%
SpS16.03
BVpS9.43
TBVpS-0.92
PEG (NY)2.66
PEG (5Y)3.37
Graham Number14.12
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 | 1.62 |
F-Score8
WACC8.09%
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 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 1Y1.36%
EBIT growth 3Y-2.01%
EBIT growth 5Y1.69%
EBIT Next Year56.86%
EBIT Next 3YN/A
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 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 10.82 and the Price/Book (PB) ratio is 1.08.
How financially healthy is EL POLLO LOCO HOLDINGS INC?
The financial health rating of EL POLLO LOCO HOLDINGS INC (LOCO) is 4 / 10.