RESTAURANT BRANDS INTERN (QSR) Stock Fundamental Analysis
USA - NYSE:QSR - CA76131D1033 - Common Stock
67.38 USD
-0.04 (-0.06%)
67.38 USD
0 (0%)
Overall QSR gets a fundamental rating of 4 out of 10. We evaluated QSR against 135 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of QSR while its profitability can be described as average. QSR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year QSR was profitable.
QSR had a positive operating cash flow in the past year.
QSR had positive earnings in each of the past 5 years.
QSR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
QSR's Return On Assets of 3.34% is in line compared to the rest of the industry. QSR outperforms 57.78% of its industry peers.
With an excellent Return On Equity value of 25.90%, QSR belongs to the best of the industry, outperforming 83.70% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.19%, QSR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for QSR is below the industry average of 10.67%.
The 3 year average ROIC (8.03%) for QSR is below the current ROIC(8.19%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 25.9% | ||
| ROIC | 8.19% |
ROA(3y)4.55%
ROA(5y)3.88%
ROE(3y)38.23%
ROE(5y)34.92%
ROIC(3y)8.03%
ROIC(5y)7.44%
1.3 Margins
QSR has a Profit Margin of 9.43%. This is in the better half of the industry: QSR outperforms 72.59% of its industry peers.
QSR's Profit Margin has been stable in the last couple of years.
QSR has a Operating Margin of 25.82%. This is amongst the best in the industry. QSR outperforms 91.85% of its industry peers.
QSR's Operating Margin has declined in the last couple of years.
QSR has a Gross Margin of 54.76%. This is in the better half of the industry: QSR outperforms 65.19% of its industry peers.
QSR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.82% | ||
| PM (TTM) | 9.43% | ||
| GM | 54.76% |
OM growth 3Y-5.89%
OM growth 5Y-5.16%
PM growth 3Y-5.95%
PM growth 5Y1.14%
GM growth 3Y-4.56%
GM growth 5Y-2.9%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so QSR is still creating some value.
The number of shares outstanding for QSR has been increased compared to 1 year ago.
QSR has more shares outstanding than it did 5 years ago.
QSR has about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that QSR is in the distress zone and has some risk of bankruptcy.
QSR's Altman-Z score of 1.35 is in line compared to the rest of the industry. QSR outperforms 41.48% of its industry peers.
The Debt to FCF ratio of QSR is 11.45, which is on the high side as it means it would take QSR, 11.45 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.45, QSR is in line with its industry, outperforming 54.07% of the companies in the same industry.
A Debt/Equity ratio of 4.13 is on the high side and indicates that QSR has dependencies on debt financing.
QSR has a Debt to Equity ratio of 4.13. This is comparable to the rest of the industry: QSR outperforms 42.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 11.45 | ||
| Altman-Z | 1.35 |
ROIC/WACC1.1
WACC7.44%
2.3 Liquidity
A Current Ratio of 1.01 indicates that QSR should not have too much problems paying its short term obligations.
QSR has a Current ratio (1.01) which is in line with its industry peers.
A Quick Ratio of 0.95 indicates that QSR may have some problems paying its short term obligations.
QSR has a Quick ratio (0.95) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
QSR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.86%.
Measured over the past 5 years, QSR shows a small growth in Earnings Per Share. The EPS has been growing by 4.05% on average per year.
Looking at the last year, QSR shows a very strong growth in Revenue. The Revenue has grown by 21.80%.
The Revenue has been growing by 8.45% on average over the past years. This is quite good.
EPS 1Y (TTM)5.86%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%9.3%
Revenue 1Y (TTM)21.8%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%15.87%
3.2 Future
QSR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.42% yearly.
The Revenue is expected to grow by 4.63% on average over the next years.
EPS Next Y11.25%
EPS Next 2Y10.48%
EPS Next 3Y9.87%
EPS Next 5Y8.42%
Revenue Next Year10.63%
Revenue Next 2Y7.18%
Revenue Next 3Y5.84%
Revenue Next 5Y4.63%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.64, QSR is valued on the expensive side.
Based on the Price/Earnings ratio, QSR is valued a bit cheaper than the industry average as 68.89% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of QSR to the average of the S&P500 Index (27.40), we can say QSR is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.58 indicates a correct valuation of QSR.
QSR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. QSR is cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. QSR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 16.58 |
4.2 Price Multiples
QSR's Enterprise Value to EBITDA is on the same level as the industry average.
77.78% of the companies in the same industry are more expensive than QSR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.15 | ||
| EV/EBITDA | 13.18 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
QSR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.75
PEG (5Y)4.85
EPS Next 2Y10.48%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.68%, QSR has a reasonable but not impressive dividend return.
QSR's Dividend Yield is rather good when compared to the industry average which is at 5.94. QSR pays more dividend than 88.15% of the companies in the same industry.
QSR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
5.2 History
The dividend of QSR decreases each year by -6.89%.
QSR has paid a dividend for at least 10 years, which is a reliable track record.
QSR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-6.89%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
QSR pays out 124.21% of its income as dividend. This is not a sustainable payout ratio.
DP124.21%
EPS Next 2Y10.48%
EPS Next 3Y9.87%
67.38
-0.04 (-0.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner Change-0.01%
Ins Owners1.34%
Ins Owner Change0%
Market Cap22.09B
Analysts75.83
Price Target78.38 (16.33%)
Short Float %3.73%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
Yearly Dividend2.29
Dividend Growth(5Y)-6.89%
DP124.21%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.42%
Min EPS beat(2)-5.14%
Max EPS beat(2)-3.69%
EPS beat(4)1
Avg EPS beat(4)-2.52%
Min EPS beat(4)-5.14%
Max EPS beat(4)2.01%
EPS beat(8)4
Avg EPS beat(8)-0.68%
EPS beat(12)7
Avg EPS beat(12)2.98%
EPS beat(16)11
Avg EPS beat(16)3.51%
Revenue beat(2)1
Avg Revenue beat(2)0.48%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)2.77%
Revenue beat(4)1
Avg Revenue beat(4)-0.18%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)2.77%
Revenue beat(8)3
Avg Revenue beat(8)-0.14%
Revenue beat(12)7
Avg Revenue beat(12)0.26%
Revenue beat(16)10
Avg Revenue beat(16)0.48%
PT rev (1m)-0.29%
PT rev (3m)-1.23%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-0.04%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.98%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 16.58 | ||
| P/S | 2.43 | ||
| P/FCF | 18.15 | ||
| P/OCF | 15.22 | ||
| P/B | 6.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.18 |
EPS(TTM)3.43
EY5.09%
EPS(NY)4.06
Fwd EY6.03%
FCF(TTM)3.71
FCFY5.51%
OCF(TTM)4.43
OCFY6.57%
SpS27.78
BVpS10.12
TBVpS-43.51
PEG (NY)1.75
PEG (5Y)4.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 25.9% | ||
| ROCE | 10.25% | ||
| ROIC | 8.19% | ||
| ROICexc | 8.57% | ||
| ROICexgc | 43.39% | ||
| OM | 25.82% | ||
| PM (TTM) | 9.43% | ||
| GM | 54.76% | ||
| FCFM | 13.36% |
ROA(3y)4.55%
ROA(5y)3.88%
ROE(3y)38.23%
ROE(5y)34.92%
ROIC(3y)8.03%
ROIC(5y)7.44%
ROICexc(3y)8.51%
ROICexc(5y)7.9%
ROICexgc(3y)52.12%
ROICexgc(5y)49.93%
ROCE(3y)10.05%
ROCE(5y)9.31%
ROICexcg growth 3Y-4.66%
ROICexcg growth 5Y-3.62%
ROICexc growth 3Y5.76%
ROICexc growth 5Y1.01%
OM growth 3Y-5.89%
OM growth 5Y-5.16%
PM growth 3Y-5.95%
PM growth 5Y1.14%
GM growth 3Y-4.56%
GM growth 5Y-2.9%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 11.45 | ||
| Debt/EBITDA | 5.16 | ||
| Cap/Depr | 76.97% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 3.11 | ||
| Cash Conversion | 54.65% | ||
| Profit Quality | 141.68% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.35 |
F-Score6
WACC7.44%
ROIC/WACC1.1
Cap/Depr(3y)63.87%
Cap/Depr(5y)61.25%
Cap/Sales(3y)1.88%
Cap/Sales(5y)1.97%
Profit Quality(3y)122.17%
Profit Quality(5y)145.05%
High Growth Momentum
Growth
EPS 1Y (TTM)5.86%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%9.3%
EPS Next Y11.25%
EPS Next 2Y10.48%
EPS Next 3Y9.87%
EPS Next 5Y8.42%
Revenue 1Y (TTM)21.8%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%15.87%
Revenue Next Year10.63%
Revenue Next 2Y7.18%
Revenue Next 3Y5.84%
Revenue Next 5Y4.63%
EBIT growth 1Y5.95%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year23.03%
EBIT Next 3Y11.54%
EBIT Next 5Y9.29%
FCF growth 1Y2.44%
FCF growth 3Y-7.03%
FCF growth 5Y-1.64%
OCF growth 1Y10.93%
OCF growth 3Y-4.51%
OCF growth 5Y0.36%