RESTAURANT BRANDS INTERN (QSR) Stock Fundamental Analysis
NYSE:QSR - New York Stock Exchange, Inc. - CA76131D1033 - Common Stock - Currency: USD
Overall QSR gets a fundamental rating of 5 out of 10. We evaluated QSR against 135 industry peers in the Hotels, Restaurants & Leisure industry. QSR has an excellent profitability rating, but there are concerns on its financial health. 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.
QSR had a positive operating cash flow in the past year.
Each year in the past 5 years QSR has been profitable.
QSR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of QSR (4.15%) is better than 65.65% of its industry peers.
The Return On Equity of QSR (32.83%) is better than 87.79% of its industry peers.
QSR has a better Return On Invested Capital (8.56%) than 67.94% of its industry peers.
QSR had an Average Return On Invested Capital over the past 3 years of 8.05%. This is below the industry average of 10.79%.
The 3 year average ROIC (8.05%) for QSR is below the current ROIC(8.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 32.83% | ||
| ROIC | 8.56% |
ROA(3y)4.55%
ROA(5y)3.88%
ROE(3y)38.23%
ROE(5y)34.92%
ROIC(3y)8.05%
ROIC(5y)7.46%
1.3 Margins
Looking at the Profit Margin, with a value of 12.15%, QSR is in the better half of the industry, outperforming 77.86% 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.
Looking at the Operating Margin, with a value of 28.40%, QSR belongs to the top of the industry, outperforming 94.66% of the companies in the same industry.
QSR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 58.30%, QSR is in the better half of the industry, outperforming 70.99% 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 | 28.4% | ||
| PM (TTM) | 12.15% | ||
| GM | 58.3% |
OM growth 3Y-5.58%
OM growth 5Y-4.98%
PM growth 3Y-5.95%
PM growth 5Y1.14%
GM growth 3Y-4.58%
GM growth 5Y-2.91%
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.
Compared to 5 years ago, QSR has more shares outstanding
The debt/assets ratio for QSR has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.33, we must say that QSR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of QSR (1.33) is comparable to the rest of the industry.
The Debt to FCF ratio of QSR is 10.72, which is on the high side as it means it would take QSR, 10.72 years of fcf income to pay off all of its debts.
QSR has a Debt to FCF ratio (10.72) which is in line with its industry peers.
A Debt/Equity ratio of 4.42 is on the high side and indicates that QSR has dependencies on debt financing.
The Debt to Equity ratio of QSR (4.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.42 | ||
| Debt/FCF | 10.72 | ||
| Altman-Z | 1.33 |
ROIC/WACC1.02
WACC8.37%
2.3 Liquidity
A Current Ratio of 0.97 indicates that QSR may have some problems paying its short term obligations.
With a Current ratio value of 0.97, QSR perfoms like the industry average, outperforming 54.20% of the companies in the same industry.
QSR has a Quick Ratio of 0.97. 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 (0.91) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.46% over the past year.
The Earnings Per Share has been growing slightly by 4.05% on average over the past years.
The Revenue has grown by 19.71% in the past year. This is quite good.
QSR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.45% yearly.
EPS 1Y (TTM)2.46%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%8%
Revenue 1Y (TTM)19.71%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%26.15%
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 10.57% on average per year.
QSR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.05% yearly.
EPS Next Y13.71%
EPS Next 2Y11.31%
EPS Next 3Y11.48%
EPS Next 5Y10.57%
Revenue Next Year9.5%
Revenue Next 2Y6.46%
Revenue Next 3Y5.73%
Revenue Next 5Y5.05%
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 18.71, which indicates a rather expensive current valuation of QSR.
Based on the Price/Earnings ratio, QSR is valued a bit cheaper than the industry average as 74.05% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.63, QSR is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.46, which indicates a correct valuation of QSR.
Based on the Price/Forward Earnings ratio, QSR is valued a bit cheaper than the industry average as 74.05% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, QSR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 16.46 |
4.2 Price Multiples
QSR's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QSR indicates a rather cheap valuation: QSR is cheaper than 83.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.53 | ||
| EV/EBITDA | 12.5 |
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)1.36
PEG (5Y)4.62
EPS Next 2Y11.31%
EPS Next 3Y11.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.72%, QSR has a reasonable but not impressive dividend return.
QSR's Dividend Yield is rather good when compared to the industry average which is at 3.06. QSR pays more dividend than 90.84% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, QSR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
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.
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 100.78% of its income as dividend. This is not a sustainable payout ratio.
DP100.78%
EPS Next 2Y11.31%
EPS Next 3Y11.48%
62.31
-0.9 (-1.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86.81%
Inst Owner Change-2.45%
Ins Owners1.15%
Ins Owner Change0.64%
Market Cap20.22B
Analysts78
Price Target80.45 (29.11%)
Short Float %2.4%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
Yearly Dividend2.29
Dividend Growth(5Y)-6.89%
DP100.78%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.63%
Min EPS beat(2)-3.26%
Max EPS beat(2)2.01%
EPS beat(4)2
Avg EPS beat(4)-0.51%
Min EPS beat(4)-3.26%
Max EPS beat(4)2.01%
EPS beat(8)6
Avg EPS beat(8)3.67%
EPS beat(12)9
Avg EPS beat(12)4.78%
EPS beat(16)13
Avg EPS beat(16)6.12%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)0%
Revenue beat(4)2
Avg Revenue beat(4)0.3%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)1.76%
Revenue beat(8)4
Avg Revenue beat(8)-0.11%
Revenue beat(12)8
Avg Revenue beat(12)0.64%
Revenue beat(16)10
Avg Revenue beat(16)0.68%
PT rev (1m)-1.15%
PT rev (3m)-4.18%
EPS NQ rev (1m)-3.64%
EPS NQ rev (3m)-3.85%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)-1.64%
Revenue NQ rev (1m)-1.41%
Revenue NQ rev (3m)4.24%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 16.46 | ||
| P/S | 2.4 | ||
| P/FCF | 15.53 | ||
| P/OCF | 13.45 | ||
| P/B | 6.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.5 |
EPS(TTM)3.33
EY5.34%
EPS(NY)3.79
Fwd EY6.08%
FCF(TTM)4.01
FCFY6.44%
OCF(TTM)4.63
OCFY7.43%
SpS25.91
BVpS9.59
TBVpS-42.53
PEG (NY)1.36
PEG (5Y)4.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 32.83% | ||
| ROCE | 10.72% | ||
| ROIC | 8.56% | ||
| ROICexc | 9.11% | ||
| ROICexgc | 47.36% | ||
| OM | 28.4% | ||
| PM (TTM) | 12.15% | ||
| GM | 58.3% | ||
| FCFM | 15.49% |
ROA(3y)4.55%
ROA(5y)3.88%
ROE(3y)38.23%
ROE(5y)34.92%
ROIC(3y)8.05%
ROIC(5y)7.46%
ROICexc(3y)8.54%
ROICexc(5y)7.92%
ROICexgc(3y)52.28%
ROICexgc(5y)50.02%
ROCE(3y)10.08%
ROCE(5y)9.33%
ROICexcg growth 3Y-4.34%
ROICexcg growth 5Y-3.43%
ROICexc growth 3Y6.1%
ROICexc growth 5Y1.21%
OM growth 3Y-5.58%
OM growth 5Y-4.98%
PM growth 3Y-5.95%
PM growth 5Y1.14%
GM growth 3Y-4.58%
GM growth 5Y-2.91%
F-Score5
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.42 | ||
| Debt/FCF | 10.72 | ||
| Debt/EBITDA | 5.18 | ||
| Cap/Depr | 76.14% | ||
| Cap/Sales | 2.39% | ||
| Interest Coverage | 3.04 | ||
| Cash Conversion | 56.7% | ||
| Profit Quality | 127.52% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.33 |
F-Score5
WACC8.37%
ROIC/WACC1.02
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)2.46%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%8%
EPS Next Y13.71%
EPS Next 2Y11.31%
EPS Next 3Y11.48%
EPS Next 5Y10.57%
Revenue 1Y (TTM)19.71%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%26.15%
Revenue Next Year9.5%
Revenue Next 2Y6.46%
Revenue Next 3Y5.73%
Revenue Next 5Y5.05%
EBIT growth 1Y12.7%
EBIT growth 3Y7.23%
EBIT growth 5Y3.05%
EBIT Next Year25.55%
EBIT Next 3Y11.76%
EBIT Next 5Y9.29%
FCF growth 1Y8.23%
FCF growth 3Y-7.03%
FCF growth 5Y-1.64%
OCF growth 1Y13.61%
OCF growth 3Y-4.51%
OCF growth 5Y0.36%