Home Sectors Consumer Cyclical Stock Valuation: Brinker International (NYSE: EAT)

Stock Valuation: Brinker International (NYSE: EAT)

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Brinker International is in the consumer cyclical sector and is part of the restaurants industry. Brinker International Inc operates casual-dining restaurants. It franchises brands includes Maggiano’s and Chili’s Grill and Bar.

Previous Intraday Trading Performance:

The EAT stock showed a previous change of 5.02% with an open at 38.59 and a close of 40.14. It reached an intraday high of 40.22 and a low of 38.59.

SeekingAlpha:  UBS pulls bear call on Brinker International

Liquidity:

The stock has a market cap of $1.5b with 37.5m shares outstanding, of which the float is 35.2m shares. Trading volume reached 1,513,416 shares compared to its average volume of 1,037,416 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Brinker International shares returned 6.16% and in the past 30 trading days it returned -6.95%. Over three months, it changed -10.50%. In one year it has changed -6.45% and within that year its 52-week high was 54.14 and its 52-week low was 36.82. EAT stock is 9.02% above its 52 Week Low.

Our calculations show a 200 day moving average of 44.80 and a 50 day moving average of 42.28. Currently EAT stock is trading -10.40% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  UBS pulls bear call on Brinker International

Earnings:

The last annual fiscal EPS for the company was reported at 2.74 that ended on 30th of June 2018, which according to the previous close, that is a PE of 14.65. Based on 7 analyst estimates, the consensus EPS for the next quarter is 0.42. The TTM EPS is 3.61, which comes to a TTM PE of 11.12. Historically, the PE high was 28.20 and the PE low was 9.90. If the stock reached its PE low, that would represent a price of 35.74, which is a decrease of -10.97%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/30/2019): 1.31
4thQtr of 2018 (Reported on 01/29/2019): 0.83
3rdQtr of 2018 (Reported on 10/30/2018): 0.64
2ndQtr of 2018 (Reported on 08/14/2018): 1.01
1stQtr of 2018 (Reported on 05/01/2018): 1.02

The dividend per share is currently 1.52, which is a dividend yield of 3.79%. Also, the payout ratio is 42.11%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 63.64, which means it is possibly undervalued and has a margin of safety of 36.92%.

Indicators to Watch:

Short-interest was 12,177,207, which was 32.47% of shares outstanding. The short-interest ratio or days-to-cover ratio was 15.39. This stock has a high level of short interest and may fall in value in the near term.

The current calculated beta is 0.25.

SeekingAlpha:  Douglas Emmett reports Q1 results

Fundamental Indicators:

Based on last reported financials, the company’s return on assets is 12.25%, profit margin is 4.89%, price-to-sales is 0.45 and.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 3  :Past Performance Score
 1  :Financial Strength Score
 0  :Future Growth Score
 5  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.