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 5 out of 10. We evaluated TGR against 53 industry peers in the Hotels, Restaurants & Leisure industry. While TGR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TGR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TGR had positive earnings in the past year.
In the past year TGR had a positive cash flow from operations.
In the past 5 years TGR has always been profitable.
In the past 5 years TGR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TGR (23.62%) is better than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 37.26%, TGR belongs to the best of the industry, outperforming 97.78% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TGR is significantly above the industry average of 11.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.62% | ||
| ROE | N/A | ||
| ROIC | 37.26% |
ROA(3y)24.9%
ROA(5y)22.98%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.71%
ROIC(5y)39.66%
1.3 Margins
With an excellent Profit Margin value of 21.13%, TGR belongs to the best of the industry, outperforming 88.89% 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 (32.48%) is better than 95.56% of its industry peers.
TGR's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 48.57%, TGR is not doing good in the industry: 62.22% of the companies in the same industry are doing better.
TGR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.48% | ||
| PM (TTM) | 21.13% | ||
| GM | 48.57% |
OM growth 3Y3.97%
OM growth 5Y1.1%
PM growth 3Y12.16%
PM growth 5Y-3.6%
GM growth 3Y1.29%
GM growth 5Y1.12%
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 increased compared to 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
TGR has an Altman-Z score of 2.35. This is not the best score and indicates that TGR is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.35, TGR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of TGR is 8.19, which is on the high side as it means it would take TGR, 8.19 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 8.19, TGR is not doing good in the industry: 62.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.19 | ||
| Altman-Z | 2.35 |
ROIC/WACC4.61
WACC8.08%
2.3 Liquidity
A Current Ratio of 1.37 indicates that TGR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.37, TGR is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
TGR has a Quick Ratio of 1.37. This is a normal value and indicates that TGR is financially healthy and should not expect problems in meeting its short term obligations.
TGR has a better Quick ratio (1.37) than 75.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The earnings per share for TGR have decreased by -1.72% in the last year.
Measured over the past years, TGR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.35% on average per year.
The Revenue has been growing slightly by 2.32% in the past year.
TGR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.46% yearly.
EPS 1Y (TTM)-1.72%
EPS 3Y12.61%
EPS 5Y10.35%
EPS Q2Q%-4.86%
Revenue 1Y (TTM)2.32%
Revenue growth 3Y7.78%
Revenue growth 5Y4.46%
Sales Q2Q%6.91%
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 9.60% on average per year.
Based on estimates for the next years, TGR will show a small growth in Revenue. The Revenue will grow by 6.69% on average per year.
EPS Next Y6.88%
EPS Next 2Y8.24%
EPS Next 3Y9.13%
EPS Next 5Y9.6%
Revenue Next Year5.49%
Revenue Next 2Y6.04%
Revenue Next 3Y6.15%
Revenue Next 5Y6.69%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.53, TGR can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as TGR.
When comparing the Price/Earnings ratio of TGR to the average of the S&P500 Index (28.47), we can say TGR is valued inline with the index average.
The Price/Forward Earnings ratio is 21.61, which indicates a rather expensive current valuation of TGR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TGR is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, TGR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.53 | ||
| Fwd PE | 21.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TGR indicates a slightly more expensive valuation: TGR is more expensive than 64.44% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TGR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.72 | ||
| EV/EBITDA | 18.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TGR may justify a higher PE ratio.
PEG (NY)3.71
PEG (5Y)2.47
EPS Next 2Y8.24%
EPS Next 3Y9.13%
5. Dividend
5.1 Amount
TGR has a Yearly Dividend Yield of 2.05%.
TGR's Dividend Yield is a higher than the industry average which is at 2.78.
Compared to an average S&P500 Dividend Yield of 2.28, TGR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
On average, the dividend of TGR grows each year by 10.79%, which is quite nice.
Dividend Growth(5Y)10.79%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
TGR pays out 48.17% of its income as dividend. This is a bit on the high side, but may be sustainable.
TGR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.17%
EPS Next 2Y8.24%
EPS Next 3Y9.13%
YUM! BRANDS INC
FRA:TGR (2/4/2025, 7:00:00 PM)
126.65
-1.75 (-1.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners87.42%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap35.34B
Analysts70.59
Price Target138.46 (9.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Yearly Dividend2.42
Dividend Growth(5Y)10.79%
DP48.17%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.73%
Min EPS beat(2)-4.11%
Max EPS beat(2)0.66%
EPS beat(4)1
Avg EPS beat(4)-4.98%
Min EPS beat(4)-11.06%
Max EPS beat(4)0.66%
EPS beat(8)4
Avg EPS beat(8)0.03%
EPS beat(12)4
Avg EPS beat(12)-1.74%
EPS beat(16)8
Avg EPS beat(16)2.88%
Revenue beat(2)0
Avg Revenue beat(2)-4.02%
Min Revenue beat(2)-4.8%
Max Revenue beat(2)-3.24%
Revenue beat(4)0
Avg Revenue beat(4)-4.95%
Min Revenue beat(4)-7.47%
Max Revenue beat(4)-3.24%
Revenue beat(8)2
Avg Revenue beat(8)-3.02%
Revenue beat(12)2
Avg Revenue beat(12)-2.49%
Revenue beat(16)5
Avg Revenue beat(16)-1.35%
PT rev (1m)-1.86%
PT rev (3m)0.82%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-7.51%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-2.83%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.53 | ||
| Fwd PE | 21.61 | ||
| P/S | 5.06 | ||
| P/FCF | 26.72 | ||
| P/OCF | 22.49 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.72 |
EPS(TTM)4.96
EY3.92%
EPS(NY)5.86
Fwd EY4.63%
FCF(TTM)4.74
FCFY3.74%
OCF(TTM)5.63
OCFY4.45%
SpS25.04
BVpS-26.61
TBVpS-30.6
PEG (NY)3.71
PEG (5Y)2.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.62% | ||
| ROE | N/A | ||
| ROCE | 44.47% | ||
| ROIC | 37.26% | ||
| ROICexc | 41.58% | ||
| ROICexgc | 54.97% | ||
| OM | 32.48% | ||
| PM (TTM) | 21.13% | ||
| GM | 48.57% | ||
| FCFM | 18.93% |
ROA(3y)24.9%
ROA(5y)22.98%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.71%
ROIC(5y)39.66%
ROICexc(3y)45.18%
ROICexc(5y)45.44%
ROICexgc(3y)60%
ROICexgc(5y)60.79%
ROCE(3y)48.59%
ROCE(5y)47.35%
ROICexcg growth 3Y1%
ROICexcg growth 5Y-7.44%
ROICexc growth 3Y2.97%
ROICexc growth 5Y-5.58%
OM growth 3Y3.97%
OM growth 5Y1.1%
PM growth 3Y12.16%
PM growth 5Y-3.6%
GM growth 3Y1.29%
GM growth 5Y1.12%
F-Score6
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.19 | ||
| Debt/EBITDA | 4.44 | ||
| Cap/Depr | 152.07% | ||
| Cap/Sales | 3.56% | ||
| Interest Coverage | 4.56 | ||
| Cash Conversion | 64.57% | ||
| Profit Quality | 89.58% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 2.35 |
F-Score6
WACC8.08%
ROIC/WACC4.61
Cap/Depr(3y)172.54%
Cap/Depr(5y)160.44%
Cap/Sales(3y)3.87%
Cap/Sales(5y)3.59%
Profit Quality(3y)87.63%
Profit Quality(5y)95.2%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.72%
EPS 3Y12.61%
EPS 5Y10.35%
EPS Q2Q%-4.86%
EPS Next Y6.88%
EPS Next 2Y8.24%
EPS Next 3Y9.13%
EPS Next 5Y9.6%
Revenue 1Y (TTM)2.32%
Revenue growth 3Y7.78%
Revenue growth 5Y4.46%
Sales Q2Q%6.91%
Revenue Next Year5.49%
Revenue Next 2Y6.04%
Revenue Next 3Y6.15%
Revenue Next 5Y6.69%
EBIT growth 1Y4.17%
EBIT growth 3Y12.05%
EBIT growth 5Y5.61%
EBIT Next Year12.96%
EBIT Next 3Y8.93%
EBIT Next 5Y8.59%
FCF growth 1Y20.02%
FCF growth 3Y4.8%
FCF growth 5Y6.95%
OCF growth 1Y16.92%
OCF growth 3Y7.1%
OCF growth 5Y6.39%