RESTAURANT BRANDS INTERN (QSR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:QSR - CA76131D1033 - Common Stock
70.94 USD
-0.75 (-1.05%)
71 USD
+0.06 (+0.08%)
Taking everything into account, QSR scores 4 out of 10 in our fundamental rating. QSR was compared to 131 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
QSR had positive earnings in the past year.
QSR had a positive operating cash flow in the past year.
QSR had positive earnings in each of the past 5 years.
In the past 5 years QSR always reported a positive cash flow from operatings.
1.2 Ratios
QSR has a Return On Assets of 3.59%. This is comparable to the rest of the industry: QSR outperforms 54.96% of its industry peers.
QSR has a better Return On Equity (27.27%) than 80.92% of its industry peers.
QSR has a better Return On Invested Capital (8.41%) than 65.65% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for QSR is below the industry average of 10.43%.
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 has a Profit Margin of 9.95%. This is in the better half of the industry: QSR outperforms 72.52% of its industry peers.
QSR's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 25.95%, QSR belongs to the top of the industry, outperforming 90.84% of the companies in the same industry.
In the last couple of years the Operating Margin of QSR has declined.
QSR has a Gross Margin of 54.59%. This is in the better half of the industry: QSR outperforms 64.89% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), QSR is creating some value.
QSR has more shares outstanding than it did 1 year ago.
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
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.
With a Altman-Z score value of 1.41, QSR perfoms like the industry average, outperforming 42.75% of the companies in the same 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.
The Debt to FCF ratio of QSR (10.93) is comparable to the rest of the industry.
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 42.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.93 | ||
| Altman-Z | 1.41 |
ROIC/WACC1.11
WACC7.56%
2.3 Liquidity
A Current Ratio of 1.06 indicates that QSR should not have too much problems paying its short term obligations.
QSR has a Current ratio (1.06) which is comparable to the rest of the industry.
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 of 0.98. This is comparable to the rest of the industry: QSR outperforms 55.73% of its industry peers.
| 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%.
QSR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.05% yearly.
QSR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.82%.
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
The Earnings Per Share is expected to grow by 9.41% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 20.10, QSR is valued on the expensive side.
66.41% of the companies in the same industry are more expensive than QSR, based on the Price/Earnings ratio.
QSR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.28.
The Price/Forward Earnings ratio is 17.56, which indicates a rather expensive current valuation of QSR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of QSR indicates a somewhat cheap valuation: QSR is cheaper than 66.41% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.52. QSR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.1 | ||
| Fwd PE | 17.56 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as QSR.
QSR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. QSR is cheaper than 73.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.41 | ||
| EV/EBITDA | 13.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates QSR does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of QSR may justify a higher PE ratio.
PEG (NY)1.81
PEG (5Y)4.96
EPS Next 2Y10.14%
EPS Next 3Y9.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.45%, QSR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.84, QSR pays a better dividend. On top of this QSR pays more dividend than 90.08% of the companies listed in the same industry.
QSR's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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.
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%
70.94
-0.75 (-1.05%)
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 Cap23.25B
Revenue(TTM)9.26B
Net Income(TTM)922.00M
Analysts76.52
Price Target79 (11.36%)
Short Float %4.07%
Short Ratio4.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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)0.46%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.83%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-0.24%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.1 | ||
| Fwd PE | 17.56 | ||
| P/S | 2.51 | ||
| P/FCF | 18.41 | ||
| P/OCF | 15.47 | ||
| P/B | 6.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.25 |
EPS(TTM)3.53
EY4.98%
EPS(NY)4.04
Fwd EY5.69%
FCF(TTM)3.85
FCFY5.43%
OCF(TTM)4.58
OCFY6.46%
SpS28.26
BVpS10.31
TBVpS-42.62
PEG (NY)1.81
PEG (5Y)4.96
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
WACC7.56%
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 20.1 and the Price/Book (PB) ratio is 6.88.
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.