EL POLLO LOCO HOLDINGS INC (LOCO) Fundamental Analysis & Valuation
NASDAQ:LOCO • US2686031079
11.05 USD
+0.05 (+0.45%)
At close: Mar 9, 2026
11.05 USD
0 (0%)
After Hours: 3/9/2026, 8:17:57 PM
This LOCO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall LOCO gets a fundamental rating of 5 out of 10. We evaluated LOCO against 126 industry peers in the Hotels, Restaurants & Leisure industry. LOCO has only an average score on both its financial health and profitability. LOCO may be a bit undervalued, certainly considering the very reasonable score on growth
1. LOCO Profitability Analysis
1.1 Basic Checks
- In the past year LOCO was profitable.
- LOCO had a positive operating cash flow in the past year.
- In the past 5 years LOCO has always been profitable.
- In the past 5 years LOCO always reported a positive cash flow from operatings.
1.2 Ratios
- LOCO has a Return On Assets of 4.30%. This is in the better half of the industry: LOCO outperforms 63.49% of its industry peers.
- LOCO has a better Return On Equity (9.15%) than 69.05% of its industry peers.
- The Return On Invested Capital of LOCO (5.65%) 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 10.49%.
- 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 59.52% 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 50.00% of its industry peers.
- LOCO's Operating Margin has been stable in the last couple of years.
- LOCO's Gross Margin of 53.19% is fine compared to the rest of the industry. LOCO outperforms 61.90% of its industry peers.
- 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. LOCO Health Analysis
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
- 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 1.65, we must say that LOCO is in the distress zone and has some risk of bankruptcy.
- LOCO has a Altman-Z score (1.65) which is in line with its industry peers.
- The Debt to FCF ratio of LOCO is 2.91, which is a good value as it means it would take LOCO, 2.91 years of fcf income to pay off all of its debts.
- LOCO has a better Debt to FCF ratio (2.91) than 80.95% of its industry peers.
- 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 76.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.91 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.69
WACC8.14%
2.3 Liquidity
- A Current Ratio of 0.41 indicates that LOCO may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.41, LOCO is doing worse than 84.92% of the companies in the same industry.
- 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 82.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.38 |
3. LOCO Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 10.59% over the past year.
- 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 2.09% in the last year.
- LOCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.35% yearly.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. LOCO Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.76 indicates a reasonable valuation of LOCO.
- Based on the Price/Earnings ratio, LOCO is valued cheaper than 84.92% of the companies in the same industry.
- When comparing the Price/Earnings ratio of LOCO to the average of the S&P500 Index (26.46), we can say LOCO is valued rather cheaply.
- A Price/Forward Earnings ratio of 11.40 indicates a reasonable valuation of LOCO.
- Based on the Price/Forward Earnings ratio, LOCO is valued 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 24.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
- 84.92% 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 a bit cheaper when compared to the industry. LOCO is cheaper than 79.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.4 | ||
| EV/EBITDA | 6.69 |
4.3 Compensation for Growth
- LOCO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- LOCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.79
PEG (5Y)3.66
EPS Next 2Y4.34%
EPS Next 3Y6.03%
5. LOCO Dividend Analysis
5.1 Amount
- No dividends for LOCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
LOCO Fundamentals: All Metrics, Ratios and Statistics
11.05
+0.05 (+0.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)03-12 2026-03-12/amc
Inst Owners92.39%
Inst Owner Change1.17%
Ins Owners1.97%
Ins Owner Change0.27%
Market Cap330.95M
Revenue(TTM)480.81M
Net Income(TTM)25.90M
Analysts78.18
Price Target15.43 (39.64%)
Short Float %5.86%
Short Ratio8.46
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)0%
PT rev (3m)4.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 11.4 | ||
| P/S | 0.69 | ||
| P/FCF | 15.4 | ||
| P/OCF | 8.32 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.69 |
EPS(TTM)0.94
EY8.51%
EPS(NY)0.97
Fwd EY8.77%
FCF(TTM)0.72
FCFY6.49%
OCF(TTM)1.33
OCFY12.03%
SpS16.05
BVpS9.45
TBVpS-0.92
PEG (NY)1.79
PEG (5Y)3.66
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 | 1.65 |
F-Score8
WACC8.14%
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 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 Year57.75%
EBIT Next 3Y18.23%
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 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.
Can you provide the PE and PB ratios for LOCO stock?
The Price/Earnings (PE) ratio for EL POLLO LOCO HOLDINGS INC (LOCO) is 11.76 and the Price/Book (PB) ratio is 1.17.
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%.