10.56 USD
-0.17 (-1.58%)
10.56 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 only an average score on both its financial health and profitability. 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.
- In the past year LOCO had a positive cash flow from operations.
- LOCO had positive earnings in each of the past 5 years.
- LOCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- LOCO has a better Return On Assets (4.30%) than 63.64% of its industry peers.
- LOCO has a Return On Equity of 9.15%. This is in the better half of the industry: LOCO outperforms 68.18% of its industry peers.
- With a Return On Invested Capital value of 5.65%, LOCO perfoms like the industry average, outperforming 55.30% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for LOCO is significantly below the industry average of 10.37%.
- The 3 year average ROIC (5.08%) for LOCO is below the current ROIC(5.65%), indicating increased profibility in the last year.
| 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.
- The Operating Margin of LOCO (8.58%) 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.
- With a decent Gross Margin value of 53.19%, LOCO is doing good in 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.
- Compared to 1 year ago, LOCO has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.63, we must say that LOCO is in the distress zone and has some risk of bankruptcy.
- LOCO has a Altman-Z score (1.63) which 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.
- Looking at the Debt to Equity ratio, with a value of 0.22, LOCO is in the better half of 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 | 1.63 |
ROIC/WACC0.69
WACC8.17%
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: 80.30% 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 Quick ratio of 0.38. This is in the lower half of the industry: LOCO underperforms 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.
- The Earnings Per Share has been growing slightly by 3.21% on average over the past years.
- Looking at the last year, LOCO shows a small growth in Revenue. The Revenue has grown by 2.09% in the last year.
- The Revenue has been growing slightly by 1.35% on average over the past years.
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 6.53% on average per year.
- The Revenue is expected to grow by 2.33% on average over the next years.
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
- 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
- The Price/Earnings ratio is 11.23, which indicates a very decent valuation of LOCO.
- Based on the Price/Earnings ratio, LOCO is valued cheaper than 88.64% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.87. LOCO is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 10.84, which indicates a very decent valuation of LOCO.
- Based on the Price/Forward Earnings ratio, LOCO is valued cheaper than 85.61% of the companies in the same industry.
- LOCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.23 | ||
| Fwd PE | 10.84 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LOCO is valued cheaper than 90.15% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, LOCO is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.72 | ||
| EV/EBITDA | 6.55 |
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)1.64
PEG (5Y)3.5
EPS Next 2Y4.62%
EPS Next 3Y6.53%
5. Dividend
5.1 Amount
- No dividends for LOCO!.
| 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 11.23 and the Price/Book (PB) ratio is 1.12.
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%.