9.54 USD
-0.01 (-0.1%)
9.56 USD
+0.02 (+0.21%)
TAST gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. While TAST is still in line with the averages on profitability rating, there are concerns on its financial health. TAST is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- TAST had positive earnings in the past year.
- In the past year TAST had a positive cash flow from operations.
- TAST had negative earnings in 4 of the past 5 years.
- Each year in the past 5 years TAST had a positive operating cash flow.
1.2 Ratios
- TAST has a Return On Assets (2.13%) which is in line with its industry peers.
- The Return On Equity of TAST (18.29%) is better than 71.64% of its industry peers.
- TAST has a Return On Invested Capital (4.42%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.13% | ||
| ROE | 18.29% | ||
| ROIC | 4.42% |
ROA(3y)-1.71%
ROA(5y)-1.73%
ROE(3y)-17.32%
ROE(5y)-14.63%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- TAST's Profit Margin of 1.81% is on the low side compared to the rest of the industry. TAST is outperformed by 60.45% of its industry peers.
- In the last couple of years the Profit Margin of TAST has grown nicely.
- Looking at the Operating Margin, with a value of 3.70%, TAST is doing worse than 67.16% of the companies in the same industry.
- TAST's Operating Margin has improved in the last couple of years.
- TAST has a Gross Margin of 39.74%. This is in the lower half of the industry: TAST underperforms 65.67% of its industry peers.
- TAST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.7% | ||
| PM (TTM) | 1.81% | ||
| GM | 39.74% |
OM growth 3Y49.37%
OM growth 5Y2.77%
PM growth 3YN/A
PM growth 5Y21.87%
GM growth 3Y1.02%
GM growth 5Y-0.06%
2. Health
2.1 Basic Checks
- TAST has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, TAST has more shares outstanding
- TAST has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.38, we must say that TAST is in the distress zone and has some risk of bankruptcy.
- TAST has a Altman-Z score (1.38) which is comparable to the rest of the industry.
- The Debt to FCF ratio of TAST is 5.07, which is a neutral value as it means it would take TAST, 5.07 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of TAST (5.07) is better than 73.88% of its industry peers.
- A Debt/Equity ratio of 2.28 is on the high side and indicates that TAST has dependencies on debt financing.
- TAST has a Debt to Equity ratio (2.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.49
WACC8.98%
2.3 Liquidity
- TAST has a Current Ratio of 0.49. This is a bad value and indicates that TAST is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.49, TAST is doing worse than 76.87% of the companies in the same industry.
- TAST has a Quick Ratio of 0.49. This is a bad value and indicates that TAST is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of TAST (0.41) is worse than 79.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 173.24% over the past year.
- TAST shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.18% yearly.
- TAST shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.44%.
- The Revenue has been growing by 9.73% on average over the past years. This is quite good.
EPS 1Y (TTM)173.24%
EPS 3YN/A
EPS 5Y13.18%
EPS Q2Q%280%
Revenue 1Y (TTM)8.44%
Revenue growth 3Y6.64%
Revenue growth 5Y9.73%
Sales Q2Q%5.67%
3.2 Future
- TAST is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.34% yearly.
- TAST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.38% yearly.
EPS Next Y10.83%
EPS Next 2Y4.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.76%
Revenue Next 2Y2.88%
Revenue Next 3Y-0.54%
Revenue Next 5Y1.38%
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 decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- TAST is valuated rather expensively with a Price/Earnings ratio of 18.35.
- Based on the Price/Earnings ratio, TAST is valued a bit cheaper than the industry average as 67.16% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of TAST to the average of the S&P500 Index (28.82), we can say TAST is valued slightly cheaper.
- The Price/Forward Earnings ratio is 16.55, which indicates a correct valuation of TAST.
- Based on the Price/Forward Earnings ratio, TAST is valued a bit cheaper than 61.19% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, TAST is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TAST is valued cheaper than 86.57% of the companies in the same industry.
- TAST's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TAST is cheaper than 96.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.2 | ||
| EV/EBITDA | 6.33 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.69
PEG (5Y)1.39
EPS Next 2Y4.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- TAST has a yearly dividend return of 0.84%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.21, TAST pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.84, TAST pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
- TAST has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- 3.77% of the earnings are spent on dividend by TAST. This is a low number and sustainable payout ratio.
DP3.77%
EPS Next 2Y4.34%
EPS Next 3YN/A
CARROLS RESTAURANT GROUP INC / TAST FAQ
What is the fundamental rating for TAST stock?
ChartMill assigns a fundamental rating of 4 / 10 to TAST.
What is the valuation status of CARROLS RESTAURANT GROUP INC (TAST) stock?
ChartMill assigns a valuation rating of 5 / 10 to CARROLS RESTAURANT GROUP INC (TAST). This can be considered as Fairly Valued.
What is the profitability of TAST stock?
CARROLS RESTAURANT GROUP INC (TAST) has a profitability rating of 4 / 10.
What is the valuation of CARROLS RESTAURANT GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CARROLS RESTAURANT GROUP INC (TAST) is 18.35 and the Price/Book (PB) ratio is 2.83.
Is the dividend of CARROLS RESTAURANT GROUP INC sustainable?
The dividend rating of CARROLS RESTAURANT GROUP INC (TAST) is 3 / 10 and the dividend payout ratio is 3.77%.