YUM! BRANDS INC (TGR.DE) Stock Fundamental Analysis
FRA:TGR - Deutsche Boerse Ag - US9884981013 - Common Stock - Currency: EUR
Overall TGR gets a fundamental rating of 6 out of 10. We evaluated TGR against 58 industry peers in the Hotels, Restaurants & Leisure industry. While TGR has a great profitability rating, there are some minor concerns on its financial health. TGR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TGR was profitable.
TGR had a positive operating cash flow in the past year.
In the past 5 years TGR has always been profitable.
Each year in the past 5 years TGR had a positive operating cash flow.
1.2 Ratios
TGR's Return On Assets of 21.40% is amongst the best of the industry. TGR outperforms 100.00% of its industry peers.
The Return On Invested Capital of TGR (38.07%) is better than 98.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TGR is significantly above the industry average of 10.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.4% | ||
| ROE | N/A | ||
| ROIC | 38.07% |
ROA(3y)23.46%
ROA(5y)22.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.31%
ROIC(5y)38.47%
1.3 Margins
Looking at the Profit Margin, with a value of 18.42%, TGR belongs to the top of the industry, outperforming 87.93% of the companies in the same industry.
In the last couple of years the Profit Margin of TGR has declined.
The Operating Margin of TGR (32.17%) is better than 93.10% of its industry peers.
TGR's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 47.03%, TGR is in line with its industry, outperforming 48.28% of the companies in the same industry.
TGR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.17% | ||
| PM (TTM) | 18.42% | ||
| GM | 47.03% |
OM growth 3Y1.43%
OM growth 5Y-0.24%
PM growth 3Y-6.29%
PM growth 5Y-3.17%
GM growth 3Y-0.26%
GM growth 5Y-1.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TGR is creating value.
The number of shares outstanding for TGR has been reduced compared to 1 year ago.
The number of shares outstanding for TGR has been reduced compared to 5 years ago.
TGR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.66 indicates that TGR is not a great score, but indicates only limited risk for bankruptcy at the moment.
TGR has a Altman-Z score of 2.66. This is in the better half of the industry: TGR outperforms 74.14% of its industry peers.
The Debt to FCF ratio of TGR is 7.82, which is on the high side as it means it would take TGR, 7.82 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.82, TGR perfoms like the industry average, outperforming 56.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.82 | ||
| Altman-Z | 2.66 |
ROIC/WACC4.36
WACC8.73%
2.3 Liquidity
A Current Ratio of 1.40 indicates that TGR should not have too much problems paying its short term obligations.
TGR has a Current ratio of 1.40. This is amongst the best in the industry. TGR outperforms 84.48% of its industry peers.
TGR has a Quick Ratio of 1.40. This is a normal value and indicates that TGR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.40, TGR belongs to the top of the industry, outperforming 84.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
TGR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.03%.
TGR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.07% yearly.
The Revenue has grown by 10.09% in the past year. This is quite good.
Measured over the past years, TGR shows a small growth in Revenue. The Revenue has been growing by 6.17% on average per year.
EPS 1Y (TTM)7.03%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%13.04%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%11.83%
3.2 Future
TGR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.17% yearly.
Based on estimates for the next years, TGR will show a small growth in Revenue. The Revenue will grow by 7.04% on average per year.
EPS Next Y11.14%
EPS Next 2Y11.27%
EPS Next 3Y11.42%
EPS Next 5Y12.17%
Revenue Next Year7.09%
Revenue Next 2Y6.7%
Revenue Next 3Y6.65%
Revenue Next 5Y7.04%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TGR is valuated quite expensively with a Price/Earnings ratio of 27.21.
Compared to the rest of the industry, the Price/Earnings ratio of TGR indicates a somewhat cheap valuation: TGR is cheaper than 60.34% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, TGR is valued at the same level.
The Price/Forward Earnings ratio is 22.59, which indicates a rather expensive current valuation of TGR.
Based on the Price/Forward Earnings ratio, TGR is valued a bit cheaper than 60.34% of the companies in the same industry.
TGR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.21 | ||
| Fwd PE | 22.59 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TGR.
The rest of the industry has a similar Price/Free Cash Flow ratio as TGR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.32 | ||
| EV/EBITDA | 19.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TGR does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of TGR may justify a higher PE ratio.
PEG (NY)2.44
PEG (5Y)3
EPS Next 2Y11.27%
EPS Next 3Y11.42%
5. Dividend
5.1 Amount
TGR has a Yearly Dividend Yield of 1.89%.
TGR's Dividend Yield is a higher than the industry average which is at 3.15.
Compared to the average S&P500 Dividend Yield of 2.37, TGR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
5.2 History
The dividend of TGR is nicely growing with an annual growth rate of 9.75%!
Dividend Growth(5Y)9.75%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
TGR pays out 53.40% of its income as dividend. This is a bit on the high side, but may be sustainable.
TGR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP53.4%
EPS Next 2Y11.27%
EPS Next 3Y11.42%
FRA:TGR (7/11/2025, 7:00:00 PM)
130.9
+2.25 (+1.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners85.29%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap36.38B
Analysts70.59
Price Target142.22 (8.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Yearly Dividend2.28
Dividend Growth(5Y)9.75%
DP53.4%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.1%
Min EPS beat(2)-0.11%
Max EPS beat(2)-0.09%
EPS beat(4)1
Avg EPS beat(4)-0.91%
Min EPS beat(4)-4.11%
Max EPS beat(4)0.66%
EPS beat(8)3
Avg EPS beat(8)0.51%
EPS beat(12)4
Avg EPS beat(12)-0.88%
EPS beat(16)6
Avg EPS beat(16)0.66%
Revenue beat(2)0
Avg Revenue beat(2)-2.39%
Min Revenue beat(2)-4.49%
Max Revenue beat(2)-0.3%
Revenue beat(4)0
Avg Revenue beat(4)-3.2%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)-0.3%
Revenue beat(8)0
Avg Revenue beat(8)-4.19%
Revenue beat(12)2
Avg Revenue beat(12)-2.54%
Revenue beat(16)3
Avg Revenue beat(16)-1.73%
PT rev (1m)-1.33%
PT rev (3m)-2.43%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-0.84%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.21 | ||
| Fwd PE | 22.59 | ||
| P/S | 5.51 | ||
| P/FCF | 29.32 | ||
| P/OCF | 24.6 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.68 |
EPS(TTM)4.81
EY3.67%
EPS(NY)5.79
Fwd EY4.43%
FCF(TTM)4.46
FCFY3.41%
OCF(TTM)5.32
OCFY4.07%
SpS23.78
BVpS-23.98
TBVpS-27.56
PEG (NY)2.44
PEG (5Y)3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.4% | ||
| ROE | N/A | ||
| ROCE | 45.85% | ||
| ROIC | 38.07% | ||
| ROICexc | 42.87% | ||
| ROICexgc | 56.51% | ||
| OM | 32.17% | ||
| PM (TTM) | 18.42% | ||
| GM | 47.03% | ||
| FCFM | 18.78% |
ROA(3y)23.46%
ROA(5y)22.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.31%
ROIC(5y)38.47%
ROICexc(3y)45.11%
ROICexc(5y)43.66%
ROICexgc(3y)59.72%
ROICexgc(5y)58.3%
ROCE(3y)48.55%
ROCE(5y)46.33%
ROICexcg growth 3Y0.45%
ROICexcg growth 5Y-3.03%
ROICexc growth 3Y0.78%
ROICexc growth 5Y-2.83%
OM growth 3Y1.43%
OM growth 5Y-0.24%
PM growth 3Y-6.29%
PM growth 5Y-3.17%
GM growth 3Y-0.26%
GM growth 5Y-1.04%
F-Score6
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.82 | ||
| Debt/EBITDA | 4.24 | ||
| Cap/Depr | 150.81% | ||
| Cap/Sales | 3.61% | ||
| Interest Coverage | 4.87 | ||
| Cash Conversion | 64.77% | ||
| Profit Quality | 101.97% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 2.66 |
F-Score6
WACC8.73%
ROIC/WACC4.36
Cap/Depr(3y)174.74%
Cap/Depr(5y)154.81%
Cap/Sales(3y)3.84%
Cap/Sales(5y)3.57%
Profit Quality(3y)88.51%
Profit Quality(5y)97.18%
High Growth Momentum
Growth
EPS 1Y (TTM)7.03%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%13.04%
EPS Next Y11.14%
EPS Next 2Y11.27%
EPS Next 3Y11.42%
EPS Next 5Y12.17%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%11.83%
Revenue Next Year7.09%
Revenue Next 2Y6.7%
Revenue Next 3Y6.65%
Revenue Next 5Y7.04%
EBIT growth 1Y8.08%
EBIT growth 3Y6.16%
EBIT growth 5Y5.91%
EBIT Next Year12.4%
EBIT Next 3Y9.71%
EBIT Next 5Y9.2%
FCF growth 1Y18.71%
FCF growth 3Y-1%
FCF growth 5Y5.06%
OCF growth 1Y13.72%
OCF growth 3Y-0.33%
OCF growth 5Y5.13%