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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

BJ's Restaurants, Inc.

Carrols Restaurant Group, Inc.

El Pollo Loco Holdings, Inc.

First Watch Restaurant Group, Inc.

Biglari Holdings, Inc.

Chuy's Holdings, Inc.

Kura Sushi USA, Inc.

RCI Hospitality Holdings, Inc.

Denny's Corp.

Portillo's, Inc.

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 2.58% and Operating profit at 0.67% over the last 5 years

Positive results in Sep 25

INTEREST COVERAGE RATIO(Q) Highest at 1,397.59
RAW MATERIAL COST(Y) Fallen by -9.9% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 85.35 %

With ROCE of 12.02%, it has a very expensive valuation with a 1.33 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 34.22%, its profits have risen by 7.4% ; the PEG ratio of the company is 2

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 3.81% over the previous quarter.

Market Beating Performance

The stock has generated a return of 34.22% in the last 1 year, much higher than market (S&P 500) returns of 13.68%

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?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

El Pollo Loco Holdings, Inc.

36.22%

0.88

39.81%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.58%

EBIT Growth (5y)

0.67%

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

1.41

EV to EBIT

11.07

EV to EBITDA

8.06

EV to Capital Employed

1.33

EV to Sales

0.97

PEG Ratio

2.03

Dividend Yield

ROCE (Latest)

12.02%

ROE (Latest)

9.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

8What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,397.59

RAW MATERIAL COST(Y)

Fallen by -9.9% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 85.35 %

INVENTORY TURNOVER RATIO(HY)

Highest at 218.26 times

OPERATING PROFIT MARGIN(Q)

Highest at 12.9 %

EPS(Q)

Highest at USD 0.25

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 39.81 MM

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

Interest Coverage Ratio

Highest at 1,397.59 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit Margin

Highest at 12.9 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at USD 0.25

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at 85.35 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 218.26 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 -9.9% (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 39.81 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)