Brinker International, Inc.
Brinker International, Inc. Fundamental Analysis
Brinker International, Inc. (EAT) shows moderate financial fundamentals with a PE ratio of 14.52, profit margin of 7.98%, and ROE of 1.34%. The company generates $5.5B in annual revenue with strong year-over-year growth of 21.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze EAT's fundamental strength across five key dimensions:
Efficiency Score
ExcellentEAT demonstrates superior asset utilization.
Valuation Score
ModerateEAT shows balanced valuation metrics.
Growth Score
ModerateEAT shows steady but slowing expansion.
Financial Health Score
WeakEAT carries high financial risk with limited liquidity.
Profitability Score
ModerateEAT maintains healthy but balanced margins.
Key Financial Metrics
Is EAT Expensive or Cheap?
P/E Ratio
EAT trades at 14.52 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EAT's PEG of 7.25 indicates potential overvaluation.
Price to Book
The market values Brinker International, Inc. at 17.38 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.87 times EBITDA. This is generally considered low.
How Well Does EAT Make Money?
Net Profit Margin
For every $100 in sales, Brinker International, Inc. keeps $7.98 as profit after all expenses.
Operating Margin
Core operations generate 10.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.34 in profit for every $100 of shareholder equity.
ROA
Brinker International, Inc. generates $16.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Brinker International, Inc. produces operating cash flow of $718.73M, showing steady but balanced cash generation.
Free Cash Flow
Brinker International, Inc. produces free cash flow of $444.17M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $10.20 in free cash annually.
FCF Yield
EAT converts 7.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
17.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.34
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How EAT Stacks Against Its Sector Peers
| Metric | EAT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.52 | 25.25 | Better (Cheaper) |
| ROE | 134.24% | 1170.00% | Weak |
| Net Margin | 7.98% | 742.00% | Weak |
| Debt/Equity | 4.65 | 0.77 | Weak (High Leverage) |
| Current Ratio | 0.36 | 9.19 | Weak Liquidity |
| ROA | 16.52% | -6467.00% (disorted) | Strong |
EAT outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Brinker International, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
49.80%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
1244.78%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
137.37%
Industry Style: Cyclical, Growth, Discretionary
High Growth