RESTAURANT BRANDS INTERN (QSR) Stock Fundamental Analysis
USA - NYSE:QSR - CA76131D1033 - Common Stock
67.39 USD
-0.67 (-0.98%)
67.39 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to QSR. QSR was compared to 132 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year QSR was profitable.
In the past year QSR had a positive cash flow from operations.
QSR had positive earnings in each of the past 5 years.
Each year in the past 5 years QSR had a positive operating cash flow.
1.2 Ratios
QSR has a Return On Assets of 3.59%. This is comparable to the rest of the industry: QSR outperforms 55.30% of its industry peers.
With an excellent Return On Equity value of 27.27%, QSR belongs to the best of the industry, outperforming 81.06% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.41%, QSR is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
QSR had an Average Return On Invested Capital over the past 3 years of 8.03%. This is below the industry average of 10.59%.
The 3 year average ROIC (8.03%) for QSR is below the current ROIC(8.41%), indicating increased profibility in the last year.
| 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
QSR's Profit Margin of 9.95% is fine compared to the rest of the industry. QSR outperforms 72.73% of its industry peers.
QSR's Profit Margin has been stable in the last couple of years.
QSR has a better Operating Margin (25.95%) than 90.91% of its industry peers.
QSR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 54.59%, QSR is in the better half of the industry, outperforming 65.15% of the companies in the same industry.
In the last couple of years the Gross Margin of QSR has declined.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), QSR is creating some value.
Compared to 1 year ago, QSR has more shares outstanding
The number of shares outstanding for QSR has been increased compared to 5 years ago.
QSR has about the same debt/assets ratio as last year.
2.2 Solvency
QSR has an Altman-Z score of 1.38. This is a bad value and indicates that QSR is not financially healthy and even has some risk of bankruptcy.
QSR has a Altman-Z score of 1.38. This is comparable to the rest of the industry: QSR outperforms 44.70% of its industry peers.
The Debt to FCF ratio of QSR is 10.93, which is on the high side as it means it would take QSR, 10.93 years of fcf income to pay off 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 55.30% of its industry peers.
A Debt/Equity ratio of 4.05 is on the high side and indicates that QSR has dependencies on debt financing.
The Debt to Equity ratio of QSR (4.05) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.93 | ||
| Altman-Z | 1.38 |
ROIC/WACC1.16
WACC7.26%
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 has a Current ratio (1.06) which is comparable to the rest of the industry.
A Quick Ratio of 0.98 indicates that QSR may have some problems paying its short term obligations.
The Quick ratio of QSR (0.98) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
QSR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.95%.
The Earnings Per Share has been growing slightly by 4.05% on average over the past years.
The Revenue has grown by 16.82% in the past year. This is quite good.
Measured over the past years, QSR shows a quite strong growth in Revenue. The Revenue has been growing by 8.45% on average per year.
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
QSR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.41% yearly.
QSR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
EPS Next Y11.39%
EPS Next 2Y10.27%
EPS Next 3Y9.81%
EPS Next 5Y9.41%
Revenue Next Year11.46%
Revenue Next 2Y7.59%
Revenue Next 3Y6.15%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.09, 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 25.51. QSR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.64, the valuation of QSR can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of QSR indicates a somewhat cheap valuation: QSR is cheaper than 63.64% of the companies listed in the same industry.
QSR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 16.64 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as QSR.
Based on the Price/Free Cash Flow ratio, QSR is valued a bit cheaper than the industry average as 75.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.49 | ||
| EV/EBITDA | 12.82 |
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)1.68
PEG (5Y)4.71
EPS Next 2Y10.27%
EPS Next 3Y9.81%
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 4.58. QSR pays more dividend than 88.64% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, QSR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
5.2 History
The dividend of QSR decreases each year by -6.88%.
QSR has been paying a dividend for at least 10 years, so it has 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)-6.88%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
QSR pays out 118.00% of its income as dividend. This is not a sustainable payout ratio.
DP118%
EPS Next 2Y10.27%
EPS Next 3Y9.81%
67.39
-0.67 (-0.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner Change4.13%
Ins Owners1.34%
Ins Owner Change0%
Market Cap22.09B
Revenue(TTM)9.26B
Net Income(TTM)922.00M
Analysts75.83
Price Target78.77 (16.89%)
Short Float %3.69%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Yearly Dividend2.29
Dividend Growth(5Y)-6.88%
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)0.51%
PT rev (3m)0.01%
EPS NQ rev (1m)-0.75%
EPS NQ rev (3m)-0.63%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-0.24%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 16.64 | ||
| P/S | 2.38 | ||
| P/FCF | 17.49 | ||
| P/OCF | 14.7 | ||
| P/B | 6.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.82 |
EPS(TTM)3.53
EY5.24%
EPS(NY)4.05
Fwd EY6.01%
FCF(TTM)3.85
FCFY5.72%
OCF(TTM)4.59
OCFY6.8%
SpS28.26
BVpS10.31
TBVpS-42.62
PEG (NY)1.68
PEG (5Y)4.71
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 | 1.38 |
F-Score6
WACC7.26%
ROIC/WACC1.16
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 Y11.39%
EPS Next 2Y10.27%
EPS Next 3Y9.81%
EPS Next 5Y9.41%
Revenue 1Y (TTM)16.82%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%6.9%
Revenue Next Year11.46%
Revenue Next 2Y7.59%
Revenue Next 3Y6.15%
Revenue Next 5Y4.81%
EBIT growth 1Y7.13%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year23.03%
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 5 / 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 19.09 and the Price/Book (PB) ratio is 6.53.
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 11.39% in the next year.