EL POLLO LOCO HOLDINGS INC (LOCO) Stock Fundamental Analysis
USA - NASDAQ:LOCO - US2686031079 - Common Stock
9.93 USD
-0.08 (-0.8%)
10.12 USD
+0.19 (+1.91%)
Overall LOCO gets a fundamental rating of 5 out of 10. We evaluated LOCO against 133 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
LOCO had positive earnings in the past year.
LOCO had a positive operating cash flow in the past year.
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
LOCO has a Return On Assets of 4.14%. This is in the better half of the industry: LOCO outperforms 60.90% of its industry peers.
The Return On Equity of LOCO (9.02%) is better than 65.41% of its industry peers.
The Return On Invested Capital of LOCO (5.62%) is comparable to the rest of the industry.
LOCO had an Average Return On Invested Capital over the past 3 years of 5.08%. This is significantly below the industry average of 15.68%.
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 55.64% of its industry peers.
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 (8.34%) which is in line with 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 Gross Margin of 52.54%. This is in the better half of the industry: LOCO outperforms 60.90% of its industry peers.
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
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.
Compared to 5 years ago, LOCO has less shares outstanding
Compared to 1 year ago, LOCO has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.55, we must say that LOCO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.55, LOCO is in line with its industry, outperforming 45.11% of the companies in the same 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.
With a decent Debt to FCF ratio value of 3.41, LOCO is doing good in the industry, outperforming 79.70% of the companies in the same industry.
LOCO has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
LOCO has a Debt to Equity ratio of 0.26. This is in the better half of the industry: LOCO outperforms 75.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.63
WACC8.9%
2.3 Liquidity
A Current Ratio of 0.35 indicates that LOCO may have some problems paying its short term obligations.
LOCO has a worse Current ratio (0.35) than 85.71% 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.
The Quick ratio of LOCO (0.33) is worse than 81.95% of its industry peers.
| 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%.
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.
Looking at the last year, LOCO shows a small growth in Revenue. The Revenue has grown by 1.85% in the last year.
The Revenue has been growing slightly by 1.35% on average over the past years.
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
Based on estimates for the next years, LOCO will show a small growth in Earnings Per Share. The EPS will grow by 3.46% on average per year.
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
Based on the Price/Earnings ratio of 11.28, the valuation of LOCO can be described as reasonable.
Based on the Price/Earnings ratio, LOCO is valued cheaper than 90.23% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. LOCO is valued rather cheaply when compared to this.
LOCO is valuated reasonably with a Price/Forward Earnings ratio of 10.42.
LOCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. LOCO is cheaper than 87.22% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LOCO to the average of the S&P500 Index (22.70), we can say LOCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 10.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LOCO is valued cheaper than 88.72% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LOCO is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.38 | ||
| EV/EBITDA | 6.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LOCO does not grow enough to justify the current Price/Earnings ratio.
LOCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.6
PEG (5Y)3.52
EPS Next 2Y3.46%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LOCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.93
-0.08 (-0.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners94.26%
Inst Owner Change-2.04%
Ins Owners2.66%
Ins Owner Change-0.34%
Market Cap297.90M
Analysts78.18
Price Target15.05 (51.56%)
Short Float %7.59%
Short Ratio7.95
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)-1.82%
EPS NQ rev (3m)-0.69%
EPS NY rev (1m)3.09%
EPS NY rev (3m)3.39%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 10.42 | ||
| P/S | 0.62 | ||
| P/FCF | 14.38 | ||
| P/OCF | 7.94 | ||
| P/B | 1.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.48 |
EPS(TTM)0.88
EY8.86%
EPS(NY)0.95
Fwd EY9.59%
FCF(TTM)0.69
FCFY6.95%
OCF(TTM)1.25
OCFY12.6%
SpS15.99
BVpS9.14
TBVpS-1.21
PEG (NY)8.6
PEG (5Y)3.52
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%
ROICexcg growth 3Y-2.78%
ROICexcg 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 | 1.55 |
F-Score8
WACC8.9%
ROIC/WACC0.63
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 Year52.1%
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%