NYSE:EAT
$16.96
(2/9 3:06PM)
+4.0%
| Open | $16.76 |
Mkt Cap | $1.7 Billion |
| High | $17.06 |
52Wk High | $20.09 |
| Low | $16.58 |
52Wk Low | $9.65 |
| Volume | 1.7 Million |
Avg Vol 10D | 1.7 Million |
Ockham's Rating/Recommendation Summary
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EAT Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, EAT the high and low end of the Price to Sales per share ratios are 0.92x and 0.53x respectively.
Notice that EAT's current Price to Sales per share ratio is 0.47x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $16.30, EAT is 35% below where we would expect to see it. This will beneficially factor into our final analysis of EAT as it is not often that this stock sinks to these levels.
EAT Cash Earnings
Looking at EAT specifically in their Cash Earnings capabilities, Ockham views EAT as significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for EAT to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 11.50 and a 6.25 low over the same period.
So with EAT's current price (latest close of $16.30) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, EAT is 30% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with EAT.
EAT Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from EAT against the historic high and low levels over an available data range. Because EAT has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In EAT’s case, the estimated annual dividend is $0.44 producing a current dividend yield of 2.70%. The highest dividend yield from EAT in recent history was 11.43% while the lowest dividend yield was 0.00%. With that range in mind, EAT’s current dividend yield is a full 52.76% below its median dividend yield historically. This is a negative from our perspective.
Sales Growth at Brinker International Inc Discussed on Squawk On The Street
Sales growth is an absolutely essential metric to understand when researching a stock. Today, EAT's sales growth was the topic on Squawk On The Street.
At present, Ockham has a valuation stance of Undervalued on EAT, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Brinker International Inc underperforming. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Brinker International Inc has actually sunk a bit in comparison to the others.
“… The same cannot be said for BRINKER INTERNATIONAL. E. A. T. Double digit gain for BRINKER. 29 cents versus a 22 estimate. Their same store sales were down 3%. …”
Squawk On The Street: Discussion of Analysts and Brinker International Inc
Analysts' opinions can often carry a lot of weight, especially when they make major news and are covered on Squawk On The Street.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, EAT has been less covered in the news compared to the rest of our universe of stocks. The crowd at The Motley Fool does not like EAT and believes that it will Underperform. We consider EAT as Undervalued at the current price of $14.50. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… Goldman sachs adding the company to the conviction buy list and BRINKER operational and the restaurant operator upgraded to buy and merrill lynch which boosted its price target ... …”
It's Been a Month or More Since Squawk On The Street Discussed Brinker International Inc
There has not been much to report from EAT in the last few weeks at least, but Squawk On The Street talked about the stock recently.
We noticed recently that in comparison to all other stocks we analyze in the news; EAT has received less coverage from the financial media in business television and blogs. Based on our methodology, Brinker International Inc should hold some appeal to value investors as we view it as Undervalued. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… Check out BRINKER. It's the worst in the russell 1000 with a 4. 5% giveback cut to neutral from buy at ubs this and then also you've seen the price of gold. …”
Brinker International Inc Was Talked About by Squawk On The Street
The latest news from Squawk On The Street on EAT is available through Ockham's news analytics platform RazorWire.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Brinker International Inc has been talked about more than normal recently. We consider EAT as Undervalued at the current price of $14.15. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The crowd at The Motley Fool does not like EAT and believes that it will Underperform.
“… BRINKER INTERNATIONAL. Upgraded to strong by at raymond up nearly 3. 6% and palm is up > > dell, the computer maker, resumed equal weight at mortgage the firm believes dell will... …”
Brinker International Inc (EAT) Discussed on Fox Business's Countdown to the Closing Bell
Brinker International Inc is in the news. Find out how this impacts EAT trading on Ockham Research.
Two years ago cheesecake factory started to come up with better portions, costing less. Here are the publicly traded names. Yum brand the fast food, and not to mention BRINKER >> well, obviously, some of them are doing better than but for example, cheesecake factory has been one of the most popular restaurants in city after city around the united states. And people when they consider popularity, they consider price. So they feel they're getting a lot of food, good food at
“… ake factory has been one of the most popular restaurants in city after city around the united states. And people when they consider popularity, they consider price. So they feel they're getting a lot of food, good food at …”
Brinker International Inc (EAT) Discussed on Fox Business's Fox Business
Brinker International Inc is in the news. Find out how this impacts EAT trading on Ockham Research.
Morgan stanley hit a 52-week northbound northrop grumman, their profit fell. The casual dining stock. BRINKER, the parent of chili's, it's interesting because you have raymond james on the one hand raising them to an out perform from market perform but goldman sachs cut BRINKER to neutral from a buy. Make it difficult for folks at home to say hey, should I buy this one or interested in this one? Then they get the conflicting report from tage list s the analysts. It's tricky. Even the pros don't know which way it's going. Depends who I ask on wall street what they think and right now, take it for what
“… ldman sachs cut BRINKER to neutral from a buy. Make it difficult for folks at home to say hey, should I buy this one or interested in this one? Then they get the conflicting report from tage list s the analysts. It's tricky. Even the pros don't know which way it's going. Depends who I ask on wall street what they think and right now, take it for what …”
Brinker International Inc (EAT) Discussed on Fox Business's Fox Business
Brinker International Inc is in the news. Find out how this impacts EAT trading on Ockham Research.
A look at some of the casual dining names and this is interesting, because people at home are trying to figure out where should I put my money. It's difficult, particularly when you have analysts with opposite calls, so, BRINKER, which is the parent company of chili's, on the border, on the one hand you have goldman sachs cutting BRINKER today from a neutral to a buy rating. On the other hand you have raymond james to an outperform from a market perform and this makes it difficult for people to get into the market because it's hard to know which way to go with this, especially when you have analysts going different ways on particular names and yum! Brands, with the up arrows
“… ny of chili's, on the border, on the one hand you have goldman sachs cutting BRINKER today from a neutral to a buy rating. On the other hand you have raymond james to an outperform from a market perform and this makes it difficult for people to get into the market because it's hard to know which way to go with this, especially when you have analysts going different ways on particular names and yum! Brands, with the up arrows …”
Brinker International Inc (EAT) Discussed on Fox Business's Countdown to the Closing Bell
Brinker International Inc is in the news. Find out how this impacts EAT trading on Ockham Research.
Widened. >> the president and c.E.O. Leaving immediately. >> stock down 13%, down 15% earlier. >> BRINKER INTERNATIONAL also the parent of chiles, down 34%. Still seeing consumer weakness. They beat estimates, but there is worry about the price cuts. Number five, caterpillar.
“… er five, caterpillar. …”
Brinker International Inc (EAT) Discussed on Fox Business's The Opening Bell on Fox Business
Brinker International Inc is in the news. Find out how this impacts EAT trading on Ockham Research.
Goldman neutral to buy. Look at this, goldman citing increase in competition for the wireless provider and metropcs earnings will likely disappoint BRINKER INTERNATIONAL, also under pressure, down over 4%. The operator of the chili's restaurant chain beat on first quarter earnings, but morgan stanley says the results are quote, less than inspiring. And finally united health is rallying after posting at 13% rise in third quarter earnings this from a year ago. Stock is up almost 4% on that
“… on first quarter earnings, but morgan stanley says the results are quote, less than inspiring. And finally united health is rallying after posting at 13% rise in third quarter earnings this from a year ago. Stock is up almost 4% on that …”
Brinker International Inc (EAT) Discussed on Fox Business's Countdown to the Closing Bell
Brinker International Inc is in the news. Find out how this impacts EAT trading on Ockham Research.
Yesterday after the bell we started to talk about mcdonald raising their cash dividend by today, bernstein came out and actually started darden restaurants, mcdonald's and starbucks with outperform rating. Now, the one that was the that was BRINKER. So, certainly, these are the ones that they like and you can see the names are on the move. These are the up arrows in this down market for you. J.P. Morgan cutting some coal miners and the demands for the coal imports has been slowing and dims the hope for a jump in the goal prices so they downgraded both massey and energy, you can see the down arrows there. Getting hit hard. Then let's take a look at what the traders are watching, what's to buy, what's for sale? Let's see here, I can tell you that citigroup certainly, that's looking good with nearly 4 million shares to buy, bank of america, 750 million to buy and merck, 300,000, sorry, let's start over. Bank of america 750,000 to buy and let' get that right and merck 300,000 to buy and others are for sale. J.P. Morgan 300 for sale and these are ones they're selling. Over to the nasdaq and go to >> thanks, nicole. We're watching fuel cells and power companies fueling up gains I want to pull up names we don't usually talk about. I like the stocks because
“… ertainly, these are the ones that they like and you can see the names are on the move. These are the up arrows in this down market for you. J.P. Morgan cutting some coal miners and the demands for the coal imports has been slowing and dims the hope for a jump in the goal prices so they downgraded both massey and energy, you can see the down arrows there. Getting hit hard. Then let's take a look at what the traders are watching, what's to buy, what's for sale? Let's see here, I can tell you that citigroup certainly, that's looking good with nearly 4 million shares to buy, bank of america, 750 million to buy and merck, 300,000, sorry, let's start over. Bank of america 750,000 to buy and let' get that right and merck 300,000 to buy and others are for sale. J.P. Morgan 300 for sale and these are ones they're selling. Over to the nasdaq and go to >> thanks, nicole. We're watching fuel cells and power companies fueling up gains I want to pull up names we don't usually talk about. I like the stocks because …”