EL POLLO LOCO HOLDINGS INC (LOCO) Stock Fundamental Analysis
USA - NASDAQ:LOCO - US2686031079 - Common Stock
10.45 USD
+0.1 (+0.97%)
10.45 USD
0 (0%)
LOCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. LOCO has an average financial health and profitability rating. LOCO scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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 has a Return On Assets of 4.14%. This is in the better half of the industry: LOCO outperforms 61.36% of its industry peers.
The Return On Equity of LOCO (9.02%) is better than 65.91% of its industry peers.
LOCO has a Return On Invested Capital (5.62%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LOCO is significantly below the industry average of 10.78%.
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
The Profit Margin of LOCO (5.15%) is comparable to the rest of the industry.
LOCO's Profit Margin has been stable in the last couple of years.
LOCO has a Operating Margin of 8.34%. This is comparable to the rest of the industry: LOCO outperforms 49.24% of its industry peers.
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 52.54%, LOCO is doing good in the industry, outperforming 62.88% of the companies in the same industry.
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 | 8.34% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LOCO is destroying value.
LOCO has less shares outstanding than it did 1 year ago.
LOCO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LOCO has an improved debt to assets ratio.
2.2 Solvency
LOCO has an Altman-Z score of 1.57. This is a bad value and indicates that LOCO is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.57, LOCO is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of LOCO is 3.41, which is a good value as it means it would take LOCO, 3.41 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.41, LOCO belongs to the top of the industry, outperforming 81.06% 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 better Debt to Equity ratio (0.26) than 76.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.7
WACC8.08%
2.3 Liquidity
LOCO has a Current 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 Current ratio of LOCO (0.35) is worse than 85.61% of its industry peers.
A Quick Ratio of 0.33 indicates that LOCO may have some problems paying its short term obligations.
The Quick ratio of LOCO (0.33) is worse than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.33 |
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.
LOCO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.09%.
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
LOCO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.89% yearly.
Based on estimates for the next years, LOCO will show a small growth in Revenue. The Revenue will grow by 2.74% on average per year.
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.
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. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.12, which indicates a very decent valuation of LOCO.
LOCO's Price/Earnings ratio is rather cheap when compared to the industry. LOCO is cheaper than 86.36% of the companies in the same industry.
LOCO is valuated cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.67, the valuation of LOCO can be described as very reasonable.
84.09% of the companies in the same industry are more expensive than LOCO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LOCO to the average of the S&P500 Index (32.68), we can say LOCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 10.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LOCO is valued cheaply inside the industry as 84.85% of the companies are valued more expensively.
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 | 15.13 | ||
| EV/EBITDA | 6.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of LOCO may justify a higher PE ratio.
PEG (NY)2.74
PEG (5Y)3.46
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 |
10.45
+0.1 (+0.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners93.3%
Inst Owner Change-0.21%
Ins Owners2.65%
Ins Owner Change-0.34%
Market Cap313.50M
Revenue(TTM)480.81M
Net Income(TTM)24.73M
Analysts78.18
Price Target15.05 (44.02%)
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)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)-0.93%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)-0.9%
EPS NY rev (3m)2.16%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 10.67 | ||
| P/S | 0.65 | ||
| P/FCF | 15.13 | ||
| P/OCF | 8.35 | ||
| P/B | 1.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.66 |
EPS(TTM)0.94
EY9%
EPS(NY)0.98
Fwd EY9.37%
FCF(TTM)0.69
FCFY6.61%
OCF(TTM)1.25
OCFY11.97%
SpS15.99
BVpS9.14
TBVpS-1.21
PEG (NY)2.74
PEG (5Y)3.46
Graham Number13.9
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%
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 | 0.26 | ||
| 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 | 1.57 |
F-Score8
WACC8.08%
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 1Y-0.28%
EBIT growth 3Y-2.01%
EBIT growth 5Y1.69%
EBIT Next Year56.86%
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%
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 11.12 and the Price/Book (PB) ratio is 1.14.
How financially healthy is EL POLLO LOCO HOLDINGS INC?
The financial health rating of EL POLLO LOCO HOLDINGS INC (LOCO) is 4 / 10.