RESTAURANT BRANDS INTERN (QSR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:QSR - CA76131D1033 - Common Stock
70.47 USD
-0.52 (-0.73%)
70.47 USD
0 (0%)
Overall QSR gets a fundamental rating of 4 out of 10. We evaluated QSR against 132 industry peers in the Hotels, Restaurants & Leisure industry. While QSR is still in line with the averages on profitability rating, there are concerns on its financial health. QSR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
QSR had positive earnings in the past year.
In the past year QSR had a positive cash flow from operations.
In the past 5 years QSR has always been profitable.
In the past 5 years QSR always reported a positive cash flow from operatings.
1.2 Ratios
QSR has a Return On Assets (3.59%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 27.27%, QSR belongs to the top of the industry, outperforming 81.06% of the companies in the same industry.
QSR has a better Return On Invested Capital (8.41%) than 65.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for QSR is below the industry average of 10.40%.
The last Return On Invested Capital (8.41%) for QSR is above the 3 year average (8.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 27.27% | ||
| ROIC | 8.41% |
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
With a decent Profit Margin value of 9.95%, QSR is doing good in the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Profit Margin of QSR has remained more or less at the same level.
With an excellent Operating Margin value of 25.95%, QSR belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
In the last couple of years the Operating Margin of QSR has declined.
QSR has a better Gross Margin (54.59%) than 64.39% of its industry peers.
QSR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.95% | ||
| PM (TTM) | 9.95% | ||
| GM | 54.59% |
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.
Compared to 5 years ago, QSR has more shares outstanding
QSR has about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that QSR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of QSR (1.41) is comparable to the rest of the industry.
QSR has a debt to FCF ratio of 10.93. This is a negative value and a sign of low solvency as QSR would need 10.93 years to pay back of all of its debts.
QSR has a Debt to FCF ratio of 10.93. This is comparable to the rest of the industry: QSR outperforms 57.58% of its industry peers.
QSR has a Debt/Equity ratio of 4.05. This is a high value indicating a heavy dependency on external financing.
QSR has a Debt to Equity ratio of 4.05. This is comparable to the rest of the industry: QSR outperforms 42.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.93 | ||
| Altman-Z | 1.41 |
ROIC/WACC1.11
WACC7.57%
2.3 Liquidity
QSR has a Current Ratio of 1.06. This is a normal value and indicates that QSR is financially healthy and should not expect problems in meeting its short term obligations.
QSR's Current ratio of 1.06 is in line compared to the rest of the industry. QSR outperforms 56.06% of its industry peers.
QSR has a Quick Ratio of 1.06. This is a bad value and indicates that QSR is not financially healthy enough and could expect problems in meeting its short term obligations.
QSR has a Quick ratio (0.98) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.95% over the past year.
The Earnings Per Share has been growing slightly by 4.05% on average over the past years.
Looking at the last year, QSR shows a quite strong growth in Revenue. The Revenue has grown by 16.82% in the last year.
The Revenue has been growing by 8.45% on average over the past years. This is quite good.
EPS 1Y (TTM)7.95%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%10.75%
Revenue 1Y (TTM)16.82%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%6.9%
3.2 Future
Based on estimates for the next years, QSR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.41% on average per year.
Based on estimates for the next years, QSR will show a small growth in Revenue. The Revenue will grow by 4.81% on average per year.
EPS Next Y11.07%
EPS Next 2Y10.14%
EPS Next 3Y9.53%
EPS Next 5Y9.41%
Revenue Next Year11.63%
Revenue Next 2Y7.7%
Revenue Next 3Y6.07%
Revenue Next 5Y4.81%
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
The Price/Earnings ratio is 19.96, which indicates a rather expensive current valuation of QSR.
Based on the Price/Earnings ratio, QSR is valued a bit cheaper than 67.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.43. QSR is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.44, QSR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of QSR indicates a somewhat cheap valuation: QSR is cheaper than 65.91% of the companies listed in the same industry.
QSR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.66, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 17.44 |
4.2 Price Multiples
QSR's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, QSR is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.29 | ||
| EV/EBITDA | 13.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of QSR may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)4.93
EPS Next 2Y10.14%
EPS Next 3Y9.53%
5. Dividend
5.1 Amount
QSR has a Yearly Dividend Yield of 3.52%. Purely for dividend investing, there may be better candidates out there.
QSR's Dividend Yield is rather good when compared to the industry average which is at 1.48. QSR pays more dividend than 90.15% of the companies in the same industry.
QSR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
5.2 History
The dividend of QSR decreases each year by -6.89%.
QSR has been paying a dividend for at least 10 years, so it has a reliable track record.
As QSR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-6.89%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
118.00% of the earnings are spent on dividend by QSR. This is not a sustainable payout ratio.
DP118%
EPS Next 2Y10.14%
EPS Next 3Y9.53%
70.47
-0.52 (-0.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners93.18%
Inst Owner Change4.1%
Ins Owners1.36%
Ins Owner Change1.46%
Market Cap23.10B
Revenue(TTM)9.26B
Net Income(TTM)922.00M
Analysts76.52
Price Target79 (12.1%)
Short Float %6.45%
Short Ratio7.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Yearly Dividend2.29
Dividend Growth(5Y)-6.89%
DP118%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.91%
Min EPS beat(2)-3.69%
Max EPS beat(2)1.88%
EPS beat(4)2
Avg EPS beat(4)-1.24%
Min EPS beat(4)-5.14%
Max EPS beat(4)2.01%
EPS beat(8)4
Avg EPS beat(8)-0.97%
EPS beat(12)7
Avg EPS beat(12)1.59%
EPS beat(16)11
Avg EPS beat(16)3.48%
Revenue beat(2)2
Avg Revenue beat(2)2.01%
Min Revenue beat(2)1.24%
Max Revenue beat(2)2.77%
Revenue beat(4)2
Avg Revenue beat(4)0.55%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)2.77%
Revenue beat(8)4
Avg Revenue beat(8)0.39%
Revenue beat(12)7
Avg Revenue beat(12)0.14%
Revenue beat(16)11
Avg Revenue beat(16)0.73%
PT rev (1m)0.29%
PT rev (3m)0.5%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.93%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-0.24%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 17.44 | ||
| P/S | 2.49 | ||
| P/FCF | 18.29 | ||
| P/OCF | 15.37 | ||
| P/B | 6.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.25 |
EPS(TTM)3.53
EY5.01%
EPS(NY)4.04
Fwd EY5.73%
FCF(TTM)3.85
FCFY5.47%
OCF(TTM)4.58
OCFY6.51%
SpS28.26
BVpS10.31
TBVpS-42.62
PEG (NY)1.8
PEG (5Y)4.93
Graham Number28.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 27.27% | ||
| ROCE | 10.53% | ||
| ROIC | 8.41% | ||
| ROICexc | 8.88% | ||
| ROICexgc | 45.02% | ||
| OM | 25.95% | ||
| PM (TTM) | 9.95% | ||
| GM | 54.59% | ||
| FCFM | 13.63% |
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%
ROICexgc growth 3Y-4.66%
ROICexgc 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 Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.93 | ||
| Debt/EBITDA | 5.06 | ||
| Cap/Depr | 79.47% | ||
| Cap/Sales | 2.59% | ||
| Interest Coverage | 3.29 | ||
| Cash Conversion | 55.54% | ||
| Profit Quality | 136.99% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.41 |
F-Score6
WACC7.57%
ROIC/WACC1.11
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)7.95%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%10.75%
EPS Next Y11.07%
EPS Next 2Y10.14%
EPS Next 3Y9.53%
EPS Next 5Y9.41%
Revenue 1Y (TTM)16.82%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%6.9%
Revenue Next Year11.63%
Revenue Next 2Y7.7%
Revenue Next 3Y6.07%
Revenue Next 5Y4.81%
EBIT growth 1Y7.13%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year23.11%
EBIT Next 3Y11.54%
EBIT Next 5Y9.29%
FCF growth 1Y3.36%
FCF growth 3Y-7.03%
FCF growth 5Y-1.64%
OCF growth 1Y11.91%
OCF growth 3Y-4.51%
OCF growth 5Y0.36%
RESTAURANT BRANDS INTERN / QSR FAQ
What is the ChartMill fundamental rating of RESTAURANT BRANDS INTERN (QSR) stock?
ChartMill assigns a fundamental rating of 4 / 10 to QSR.
What is the valuation status for QSR stock?
ChartMill assigns a valuation rating of 4 / 10 to RESTAURANT BRANDS INTERN (QSR). This can be considered as Fairly Valued.
Can you provide the profitability details for RESTAURANT BRANDS INTERN?
RESTAURANT BRANDS INTERN (QSR) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for QSR stock?
The Price/Earnings (PE) ratio for RESTAURANT BRANDS INTERN (QSR) is 19.96 and the Price/Book (PB) ratio is 6.83.
What is the expected EPS growth for RESTAURANT BRANDS INTERN (QSR) stock?
The Earnings per Share (EPS) of RESTAURANT BRANDS INTERN (QSR) is expected to grow by 11.07% in the next year.