YUM! BRANDS INC (TGR.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TGR - US9884981013 - Common Stock
129.85 EUR
-1.3 (-0.99%)
We assign a fundamental rating of 6 out of 10 to TGR. TGR was compared to 62 industry peers in the Hotels, Restaurants & Leisure industry. While TGR has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, TGR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year TGR was profitable.
- In the past year TGR had a positive cash flow from operations.
- 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 20.12% is amongst the best of the industry. TGR outperforms 98.39% of its industry peers.
- TGR has a Return On Invested Capital of 36.61%. This is amongst the best in the industry. TGR outperforms 98.39% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TGR is significantly above the industry average of 12.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.12% | ||
| ROE | N/A | ||
| ROIC | 36.61% |
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
- With an excellent Profit Margin value of 17.95%, TGR belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
- TGR's Profit Margin has declined in the last couple of years.
- TGR has a Operating Margin of 32.23%. This is amongst the best in the industry. TGR outperforms 93.55% of its industry peers.
- TGR's Operating Margin has been stable in the last couple of years.
- TGR has a Gross Margin (46.40%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of TGR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.23% | ||
| PM (TTM) | 17.95% | ||
| GM | 46.4% |
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
- TGR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- TGR has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for TGR has been reduced compared to 5 years ago.
- The debt/assets ratio for TGR has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.79 indicates that TGR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- TGR has a better Altman-Z score (2.79) than 72.58% of its industry peers.
- TGR has a debt to FCF ratio of 7.38. This is a slightly negative value and a sign of low solvency as TGR would need 7.38 years to pay back of all of its debts.
- The Debt to FCF ratio of TGR (7.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.38 | ||
| Altman-Z | 2.79 |
ROIC/WACC4.74
WACC7.72%
2.3 Liquidity
- A Current Ratio of 1.69 indicates that TGR should not have too much problems paying its short term obligations.
- TGR has a better Current ratio (1.69) than 93.55% of its industry peers.
- TGR has a Quick Ratio of 1.69. This is a normal value and indicates that TGR is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of TGR (1.69) is better than 93.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
- TGR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.59%, which is quite good.
- The Earnings Per Share has been growing by 9.07% on average over the past years. This is quite good.
- TGR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.60%.
- The Revenue has been growing slightly by 6.17% on average over the past years.
EPS 1Y (TTM)15.59%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%15.33%
Revenue 1Y (TTM)11.6%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%8.38%
3.2 Future
- Based on estimates for the next years, TGR will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.24% on average per year.
- TGR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.40% yearly.
EPS Next Y12.29%
EPS Next 2Y10.84%
EPS Next 3Y11.04%
EPS Next 5Y11.24%
Revenue Next Year8.35%
Revenue Next 2Y9.04%
Revenue Next 3Y8.13%
Revenue Next 5Y7.4%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 25.71 indicates a quite expensive valuation of TGR.
- TGR's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of TGR to the average of the S&P500 Index (27.25), we can say TGR is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 22.64, the valuation of TGR can be described as rather expensive.
- TGR's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, TGR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 22.64 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as TGR.
- TGR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.05 | ||
| EV/EBITDA | 18.93 |
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)2.09
PEG (5Y)2.83
EPS Next 2Y10.84%
EPS Next 3Y11.04%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.89%, TGR has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.36, TGR pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, TGR has a dividend comparable with the average S&P500 company.
| 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
- 53.84% of the earnings are spent on dividend by TGR. This is a bit on the high side, but may be sustainable.
- TGR's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP53.84%
EPS Next 2Y10.84%
EPS Next 3Y11.04%
YUM! BRANDS INC / TGR.DE FAQ
Can you provide the ChartMill fundamental rating for YUM! BRANDS INC?
ChartMill assigns a fundamental rating of 6 / 10 to TGR.DE.
Can you provide the valuation status for YUM! BRANDS INC?
ChartMill assigns a valuation rating of 2 / 10 to YUM! BRANDS INC (TGR.DE). This can be considered as Overvalued.
How profitable is YUM! BRANDS INC (TGR.DE) stock?
YUM! BRANDS INC (TGR.DE) has a profitability rating of 7 / 10.
What is the valuation of YUM! BRANDS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for YUM! BRANDS INC (TGR.DE) is 25.71 and the Price/Book (PB) ratio is -5.64.
What is the expected EPS growth for YUM! BRANDS INC (TGR.DE) stock?
The Earnings per Share (EPS) of YUM! BRANDS INC (TGR.DE) is expected to grow by 12.29% in the next year.