RESTAURANT BRANDS INTERN (QSR) Stock Fundamental Analysis
USA - NYSE:QSR - CA76131D1033 - Common Stock
68.68 USD
-1.73 (-2.46%)
70.2975 USD
+1.62 (+2.36%)
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. 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.
Each year in the past 5 years QSR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of QSR (3.59%) is comparable to the rest of the industry.
The Return On Equity of QSR (27.27%) is better than 81.06% of its industry peers.
With a decent Return On Invested Capital value of 8.41%, QSR is doing good in 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 10.74%.
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
Looking at the Profit Margin, with a value of 9.95%, QSR is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
QSR's Profit Margin has been stable in the last couple of years.
QSR's Operating Margin of 25.95% is amongst the best of the industry. QSR outperforms 90.91% of its industry peers.
QSR's Operating Margin has declined in the last couple of years.
The Gross Margin of QSR (54.59%) is better than 65.15% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so QSR is still 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.
Compared to 1 year ago, QSR has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that QSR is in the distress zone and has some risk of bankruptcy.
QSR's Altman-Z score of 1.39 is in line compared to the rest of the industry. QSR outperforms 43.94% of its industry peers.
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's Debt to FCF ratio of 10.93 is in line compared to the rest of the industry. QSR outperforms 55.30% 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's Debt to Equity ratio of 4.05 is in line compared to the rest of the industry. QSR outperforms 43.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.93 | ||
| Altman-Z | 1.39 |
ROIC/WACC1.17
WACC7.22%
2.3 Liquidity
A Current Ratio of 1.06 indicates that QSR should not have too much problems paying 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.
A Quick Ratio of 0.98 indicates that QSR may have some problems paying its short term obligations.
QSR has a Quick ratio (0.98) which 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
The Earnings Per Share has been growing slightly by 7.95% over the past year.
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 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.
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.
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
A Price/Earnings ratio of 19.46 indicates a rather expensive valuation of QSR.
QSR's Price/Earnings ratio is a bit cheaper when compared to the industry. QSR is cheaper than 68.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of QSR to the average of the S&P500 Index (25.89), we can say QSR is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.96, QSR is valued correctly.
QSR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. QSR is cheaper than 64.39% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of QSR to the average of the S&P500 Index (34.59), we can say QSR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.46 | ||
| Fwd PE | 16.96 |
4.2 Price Multiples
QSR's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QSR indicates a somewhat cheap valuation: QSR is cheaper than 75.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.83 | ||
| EV/EBITDA | 12.97 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of QSR may justify a higher PE ratio.
PEG (NY)1.71
PEG (5Y)4.8
EPS Next 2Y10.27%
EPS Next 3Y9.81%
5. Dividend
5.1 Amount
QSR has a Yearly Dividend Yield of 3.52%.
Compared to an average industry Dividend Yield of 4.55, QSR pays a better dividend. On top of this QSR pays more dividend than 88.64% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, 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.
As QSR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-6.88%
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 2Y10.27%
EPS Next 3Y9.81%
68.68
-1.73 (-2.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner Change0.32%
Ins Owners1.34%
Ins Owner Change0%
Market Cap22.51B
Revenue(TTM)9.26B
Net Income(TTM)922.00M
Analysts75.83
Price Target78.77 (14.69%)
Short Float %3.9%
Short Ratio4.73
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 | 19.46 | ||
| Fwd PE | 16.96 | ||
| P/S | 2.43 | ||
| P/FCF | 17.83 | ||
| P/OCF | 14.98 | ||
| P/B | 6.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.97 |
EPS(TTM)3.53
EY5.14%
EPS(NY)4.05
Fwd EY5.9%
FCF(TTM)3.85
FCFY5.61%
OCF(TTM)4.59
OCFY6.68%
SpS28.26
BVpS10.31
TBVpS-42.62
PEG (NY)1.71
PEG (5Y)4.8
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 | 1.39 |
F-Score6
WACC7.22%
ROIC/WACC1.17
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 19.46 and the Price/Book (PB) ratio is 6.66.
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.