RESTAURANT BRANDS INTERN (QSR) Stock Fundamental Analysis
USA - NYSE:QSR - CA76131D1033 - Common Stock
63.85 USD
-0.03 (-0.05%)
63.85 USD
0 (0%)
QSR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 133 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.
Each year in the past 5 years QSR has been profitable.
In the past 5 years QSR always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.34%, QSR perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
With an excellent Return On Equity value of 25.90%, QSR belongs to the best of the industry, outperforming 82.71% of the companies in the same industry.
QSR has a Return On Invested Capital of 8.19%. This is in the better half of the industry: QSR outperforms 66.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for QSR is significantly below the industry average of 15.68%.
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
With a decent Profit Margin value of 9.43%, QSR is doing good in the industry, outperforming 72.18% 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.
The Operating Margin of QSR (25.82%) is better than 91.73% of its industry peers.
In the last couple of years the Operating Margin of QSR has declined.
QSR's Gross Margin of 54.76% is fine compared to the rest of the industry. QSR outperforms 65.41% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), QSR is destroying value.
QSR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, QSR has more shares outstanding
Compared to 1 year ago, QSR has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.32, we must say that QSR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.32, QSR is not doing good in the industry: 60.15% of the companies in the same industry are doing better.
QSR has a debt to FCF ratio of 11.45. This is a negative value and a sign of low solvency as QSR would need 11.45 years to pay back of all of its debts.
QSR has a Debt to FCF ratio of 11.45. This is comparable to the rest of the industry: QSR outperforms 55.64% of its industry peers.
QSR has a Debt/Equity ratio of 4.13. This is a high value indicating a heavy dependency on external financing.
QSR's Debt to Equity ratio of 4.13 is in line compared to the rest of the industry. QSR outperforms 41.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 11.45 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.98
WACC8.38%
2.3 Liquidity
QSR has a Current Ratio of 1.01. 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 1.01 is in line compared to the rest of the industry. QSR outperforms 55.64% of its industry peers.
QSR has a Quick Ratio of 1.01. 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 (0.95) 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
The Earnings Per Share has been growing slightly by 5.86% over the past year.
QSR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.05% yearly.
Looking at the last year, QSR shows a very strong growth in Revenue. The Revenue has grown by 21.80%.
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)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 8.77% yearly.
Based on estimates for the next years, QSR will show a small growth in Revenue. The Revenue will grow by 4.63% on average per year.
EPS Next Y11.34%
EPS Next 2Y10.49%
EPS Next 3Y9.54%
EPS Next 5Y8.77%
Revenue Next Year10.67%
Revenue Next 2Y7.24%
Revenue Next 3Y5.84%
Revenue Next 5Y4.63%
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
A Price/Earnings ratio of 18.62 indicates a rather expensive valuation of QSR.
72.93% of the companies in the same industry are more expensive than QSR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of QSR to the average of the S&P500 Index (27.20), we can say QSR is valued slightly cheaper.
QSR is valuated correctly with a Price/Forward Earnings ratio of 15.71.
Based on the Price/Forward Earnings ratio, QSR is valued a bit cheaper than the industry average as 70.68% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of QSR to the average of the S&P500 Index (22.71), we can say QSR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.62 | ||
| Fwd PE | 15.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of QSR is on the same level as its industry peers.
QSR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. QSR is cheaper than 80.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.2 | ||
| EV/EBITDA | 12.74 |
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)1.64
PEG (5Y)4.59
EPS Next 2Y10.49%
EPS Next 3Y9.54%
5. Dividend
5.1 Amount
QSR has a Yearly Dividend Yield of 3.91%.
QSR's Dividend Yield is rather good when compared to the industry average which is at 3.93. QSR pays more dividend than 87.97% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, QSR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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 2Y10.49%
EPS Next 3Y9.54%
63.85
-0.03 (-0.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners91.85%
Inst Owner Change2.26%
Ins Owners1.34%
Ins Owner Change-2.62%
Market Cap20.93B
Analysts77.5
Price Target78.6 (23.1%)
Short Float %3.73%
Short Ratio5.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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)-0.21%
PT rev (3m)-0.54%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)0.17%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-0.45%
Revenue NQ rev (1m)1.09%
Revenue NQ rev (3m)2.24%
Revenue NY rev (1m)1.61%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.62 | ||
| Fwd PE | 15.71 | ||
| P/S | 2.3 | ||
| P/FCF | 17.2 | ||
| P/OCF | 14.42 | ||
| P/B | 6.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.74 |
EPS(TTM)3.43
EY5.37%
EPS(NY)4.06
Fwd EY6.37%
FCF(TTM)3.71
FCFY5.81%
OCF(TTM)4.43
OCFY6.93%
SpS27.78
BVpS10.12
TBVpS-43.51
PEG (NY)1.64
PEG (5Y)4.59
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 | 1.32 |
F-Score6
WACC8.38%
ROIC/WACC0.98
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 Y11.34%
EPS Next 2Y10.49%
EPS Next 3Y9.54%
EPS Next 5Y8.77%
Revenue 1Y (TTM)21.8%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%15.87%
Revenue Next Year10.67%
Revenue Next 2Y7.24%
Revenue Next 3Y5.84%
Revenue Next 5Y4.63%
EBIT growth 1Y5.95%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year26.09%
EBIT Next 3Y13.39%
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%