Darden Restaurants Stock Analysis, Valuation (NYSE:DRI)
Investors can watch the Amigobulls Darden Restaurants stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons for DRI stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Darden Restaurants, Inc. Stock Rating 3.2/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for DRI stock analysis. We compare Darden Restaurants valuation with its sector peers to gauge relative attractiveness of DRI stock. Based on a company's historical fundamentals we arrive at Darden Restaurants stock rating which is indicative of the company's financial performance.
Should you buy DRI stock?
- Darden Restaurants's average operating margin of 8.97 was exceptional.
- LTM Net margins were good at 6.9% for Darden Restaurants.
- The operating cash flow looks good at 2.006 times the net income.
- Darden Restaurants generates a high return on invested capital of 14.2.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Darden Restaurants at 26.6.
- The company has a good Free Cash Flow (FCF) margin of 15.8.
Should you sell DRI stock?
- The company saw an average annual sales decline of -1.1 in sales over the last 5 years.
- The company is trading at a price to sales multiple of 1.7, which is overvalued in comparison to the Retail-Wholesale sector average multiple of 0.8.
Investors can use Amigobulls Darden Restaurants stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.
Darden Restaurants revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Darden Restaurants stock.