El Pollo Loco Holdings, Inc. (LOCO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kura Sushi USA, Inc.

BJ's Restaurants, Inc.

Carrols Restaurant Group, Inc.

Biglari Holdings, Inc.

First Watch Restaurant Group, Inc.

El Pollo Loco Holdings, Inc.

Chuy's Holdings, Inc.

RCI Hospitality Holdings, Inc.

Portillo's, Inc.

Denny's Corp.

Dine Brands Global, Inc.

Why is El Pollo Loco Holdings, Inc. ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.32 times

Poor long term growth as Net Sales has grown by an annual rate of 2.48% and Operating profit at 0.90% over the last 5 years

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 37.55 MM
CASH AND EQV(HY) Lowest at USD 13.31 MM

With ROCE of 11.53%, it has a very expensive valuation with a 1.19 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 -15.67%, its profits have fallen by -9.5%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -15.67% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to El Pollo Loco Holdings, 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 El Pollo Loco Holdings, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

El Pollo Loco Holdings, Inc.

-10.31%

0.08

36.88%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.48%

EBIT Growth (5y)

0.90%

EBIT to Interest (avg)

15.76

Debt to EBITDA (avg)

1.32

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

1.33

Tax Ratio

27.79%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

11.10%

ROE (avg)

9.58%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.25

EV to EBIT

10.29

EV to EBITDA

7.44

EV to Capital Employed

1.19

EV to Sales

0.89

PEG Ratio

Dividend Yield

ROCE (Latest)

11.53%

ROE (Latest)

9.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,325.02

RAW MATERIAL COST(Y)

Fallen by 0.05% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 226.2 times

NET SALES(Q)

Highest at USD 125.83 MM

PRE-TAX PROFIT(Q)

Highest at USD 10.81 MM

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 37.55 MM

CASH AND EQV(HY)

Lowest at USD 13.31 MM

Here's what is working for El Pollo Loco Holdings, Inc.

Interest Coverage Ratio

Highest at 1,325.02

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at USD 125.83 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 10.81 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Inventory Turnover Ratio

Highest at 226.2 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 0.05% (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

Here's what is not working for El Pollo Loco Holdings, Inc.

Operating Cash Flow

Lowest at USD 37.55 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 13.31 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents