10.22 USD
-0.34 (-3.22%)
10.22 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to LOCO. LOCO was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. LOCO has an average financial health and profitability rating. LOCO is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year LOCO was profitable.
- LOCO had a positive operating cash flow in the past year.
- Each year in the past 5 years LOCO has been profitable.
- In the past 5 years LOCO always reported a positive cash flow from operatings.
1.2 Ratios
- LOCO's Return On Assets of 4.30% is fine compared to the rest of the industry. LOCO outperforms 63.64% of its industry peers.
- The Return On Equity of LOCO (9.15%) is better than 68.18% of its industry peers.
- LOCO has a Return On Invested Capital (5.65%) which is in line with its industry peers.
- LOCO had an Average Return On Invested Capital over the past 3 years of 5.08%. This is significantly below the industry average of 10.37%.
- 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
- LOCO has a Profit Margin (5.39%) which is in line with 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 53.03% 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 53.19%, 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 | 8.58% | ||
| 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.
- 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 1.60. This is a bad value and indicates that LOCO is not financially healthy and even has some risk of bankruptcy.
- LOCO has a Altman-Z score of 1.60. This is comparable to the rest of the industry: LOCO outperforms 51.52% of 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 83.33% 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 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.91 | ||
| Altman-Z | 1.6 |
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.
- Looking at the Current ratio, with a value of 0.41, LOCO is doing worse than 80.30% 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.
- LOCO has a worse Quick ratio (0.38) than 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.
- LOCO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.21% yearly.
- 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
- 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.
- Based on estimates for the next years, LOCO will show a small growth in Revenue. The Revenue will grow by 2.33% on average per year.
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
- 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
- A Price/Earnings ratio of 10.87 indicates a reasonable valuation of LOCO.
- Compared to the rest of the industry, the Price/Earnings ratio of LOCO indicates a rather cheap valuation: LOCO is cheaper than 89.39% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. LOCO is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 10.49, the valuation of LOCO can be described as very reasonable.
- LOCO's Price/Forward 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/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.87 | ||
| Fwd PE | 10.49 |
4.2 Price Multiples
- 90.15% 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 rather cheap when compared to the industry. LOCO is cheaper than 84.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.25 | ||
| EV/EBITDA | 6.28 |
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)1.58
PEG (5Y)3.39
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 10.87 and the Price/Book (PB) ratio is 1.08.
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%.