ScoreWhy is Darden Restaurants, Inc. ?
1
High Management Efficiency with a high ROCE of 35.16%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.52 times
3
Healthy long term growth as Net Sales has grown by an annual rate of 9.12%
4
Flat results in May 25
- INTEREST(HY) At USD 92 MM has Grown at 35.1%
5
With ROCE of 31.62%, it has a very expensive valuation with a 6.32 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 3.84%, its profits have risen by 0.9% ; the PEG ratio of the company is 8.5
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Darden Restaurants, Inc. should be less than 10%
- Overall Portfolio exposure to Leisure Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Darden Restaurants, Inc. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Darden Restaurants, Inc.
2.94%
0.69
29.08%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.12%
EBIT Growth (5y)
25.61%
EBIT to Interest (avg)
11.87
Debt to EBITDA (avg)
0.52
Net Debt to Equity (avg)
0.81
Sales to Capital Employed (avg)
2.82
Tax Ratio
11.47%
Dividend Payout Ratio
63.17%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
35.16%
ROE (avg)
40.25%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
Price to Book Value
11.56
EV to EBIT
19.99
EV to EBITDA
14.67
EV to Capital Employed
6.32
EV to Sales
2.35
PEG Ratio
8.48
Dividend Yield
NA
ROCE (Latest)
31.62%
ROE (Latest)
48.03%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,707 MM
DIVIDEND PER SHARE(HY)
Highest at USD 139.7
DIVIDEND PAYOUT RATIO(Y)
Highest at 54.33%
RAW MATERIAL COST(Y)
Fallen by -3.2% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 33.1 times
NET SALES(Q)
Highest at USD 3,271.7 MM
OPERATING PROFIT(Q)
Highest at USD 574.1 MM
-4What is not working for the Company
INTEREST(HY)
At USD 92 MM has Grown at 35.1%
Here's what is working for Darden Restaurants, Inc.
Operating Cash Flow
Highest at USD 1,707 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Dividend per share
Highest at USD 139.7 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 3,271.7 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 574.1 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Inventory Turnover Ratio
Highest at 33.1 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend Payout Ratio
Highest at 54.33%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -3.2% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 135 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Darden Restaurants, Inc.
Interest
At USD 92 MM has Grown at 35.1%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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