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 2.8/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for DRI stock analysis. Darden Restaurants valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Darden Restaurants stock rating is our opinion about the business fundamentals of the company.
Should you buy DRI stock?
- Darden Restaurants had a healthy average operating margin of 9.49 over the last 4 quarters.
- Net margins came in at average 7.4% for Darden Restaurants over the last twelve months.
- The company has an operating cash flow which is 1.5404 times the net income. We see this as a positive signal.
- Darden Restaurants has an attractive ROIC (Return on Invested Capital) of 22.2
- Darden Restaurants has a good Return On Equity (ROE) of 28.5.
- Darden Restaurants has a healthy FCF (Free Cash Flow) margin of 7.7.
Should you sell DRI stock?
- Sales declined by -1.1 annually over the last 5 years.
- DRI stock is trading at a PS multiple of 1.7, which is a negative when compared to the Retail-Wholesale sector average multiple of 0.8.
Amigobulls Darden Restaurants stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of DRI stock. The fundamentals of a company are vital to identify long-term investment opportunities.
Darden Restaurants revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of DRI technical analysis to check whether the fundamental story is reflected in the market sentiment.