YUM! BRANDS INC (TGR.DE) Stock Fundamental Analysis
FRA:TGR - Deutsche Boerse Ag - US9884981013 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to TGR. TGR was compared to 55 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. While showing a medium growth rate, TGR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
TGR had positive earnings in the past year.
TGR had a positive operating cash flow in the past year.
TGR had positive earnings in each of the past 5 years.
TGR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 22.09%, TGR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
TGR's Return On Invested Capital of 37.25% is amongst the best of the industry. TGR outperforms 98.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TGR is significantly above the industry average of 11.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.09% | ||
| ROE | N/A | ||
| ROIC | 37.25% |
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
TGR has a Profit Margin of 19.68%. This is amongst the best in the industry. TGR outperforms 87.27% of its industry peers.
In the last couple of years the Profit Margin of TGR has declined.
Looking at the Operating Margin, with a value of 32.44%, TGR belongs to the top of the industry, outperforming 96.36% of the companies in the same industry.
TGR's Operating Margin has been stable in the last couple of years.
TGR has a Gross Margin (47.71%) 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 | 32.44% | ||
| PM (TTM) | 19.68% | ||
| GM | 47.71% |
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.
TGR has less shares outstanding than it did 1 year ago.
TGR has less shares outstanding than it did 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 2.80. 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.
Looking at the Altman-Z score, with a value of 2.80, TGR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
The Debt to FCF ratio of TGR is 7.91, which is on the high side as it means it would take TGR, 7.91 years of fcf income to pay off all of its debts.
TGR has a Debt to FCF ratio of 7.91. This is comparable to the rest of the industry: TGR outperforms 47.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.91 | ||
| Altman-Z | 2.8 |
ROIC/WACC4.3
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.47 indicates that TGR should not have too much problems paying its short term obligations.
The Current ratio of TGR (1.47) is better than 83.64% of its industry peers.
TGR has a Quick Ratio of 1.47. 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 (1.47) than 83.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
TGR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.00%.
TGR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.07% yearly.
TGR shows a small growth in Revenue. In the last year, the Revenue has grown by 6.68%.
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)6%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%27.78%
Revenue 1Y (TTM)6.68%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%16.01%
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 10.03% on average per year.
TGR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.89% yearly.
EPS Next Y10.65%
EPS Next 2Y11.32%
EPS Next 3Y11.57%
EPS Next 5Y10.03%
Revenue Next Year7.69%
Revenue Next 2Y6.96%
Revenue Next 3Y6.6%
Revenue Next 5Y6.89%
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 stable.
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
A Price/Earnings ratio of 29.42 indicates a quite expensive valuation of TGR.
Compared to the rest of the industry, the Price/Earnings ratio of TGR is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.35, TGR is valued at the same level.
A Price/Forward Earnings ratio of 26.60 indicates a quite expensive 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.
The average S&P500 Price/Forward Earnings ratio is at 22.10. TGR is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.42 | ||
| Fwd PE | 26.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TGR is valued a bit more expensive than the industry average as 61.82% of the companies are valued more cheaply.
TGR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.43 | ||
| EV/EBITDA | 21.24 |
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.
TGR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.76
PEG (5Y)3.24
EPS Next 2Y11.32%
EPS Next 3Y11.57%
5. Dividend
5.1 Amount
TGR has a Yearly Dividend Yield of 1.89%. Purely for dividend investing, there may be better candidates out there.
TGR's Dividend Yield is a higher than the industry average which is at 2.93.
Compared to an average S&P500 Dividend Yield of 2.33, 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
50.61% of the earnings are spent on dividend by TGR. This is a bit on the high side, but may be sustainable.
The dividend of TGR is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP50.61%
EPS Next 2Y11.32%
EPS Next 3Y11.57%
FRA:TGR (3/7/2025, 7:00:00 PM)
148.55
+1.55 (+1.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86.51%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap41.46B
Analysts69.41
Price Target146.45 (-1.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Yearly Dividend2.47
Dividend Growth(5Y)9.75%
DP50.61%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.11%
Min EPS beat(2)-4.11%
Max EPS beat(2)-0.11%
EPS beat(4)1
Avg EPS beat(4)-2.24%
Min EPS beat(4)-5.4%
Max EPS beat(4)0.66%
EPS beat(8)3
Avg EPS beat(8)-0.36%
EPS beat(12)4
Avg EPS beat(12)-1.11%
EPS beat(16)7
Avg EPS beat(16)2.05%
Revenue beat(2)0
Avg Revenue beat(2)-2.55%
Min Revenue beat(2)-4.8%
Max Revenue beat(2)-0.3%
Revenue beat(4)0
Avg Revenue beat(4)-3.95%
Min Revenue beat(4)-7.47%
Max Revenue beat(4)-0.3%
Revenue beat(8)1
Avg Revenue beat(8)-3.58%
Revenue beat(12)2
Avg Revenue beat(12)-2.49%
Revenue beat(16)4
Avg Revenue beat(16)-1.37%
PT rev (1m)5.77%
PT rev (3m)5.7%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-2.04%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-1.32%
Revenue NQ rev (1m)2.43%
Revenue NQ rev (3m)1.48%
Revenue NY rev (1m)1.68%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.42 | ||
| Fwd PE | 26.6 | ||
| P/S | 5.96 | ||
| P/FCF | 31.43 | ||
| P/OCF | 26.65 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.24 |
EPS(TTM)5.05
EY3.4%
EPS(NY)5.59
Fwd EY3.76%
FCF(TTM)4.73
FCFY3.18%
OCF(TTM)5.57
OCFY3.75%
SpS24.91
BVpS-25.24
TBVpS-29.04
PEG (NY)2.76
PEG (5Y)3.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.09% | ||
| ROE | N/A | ||
| ROCE | 44.87% | ||
| ROIC | 37.25% | ||
| ROICexc | 41.99% | ||
| ROICexgc | 55.1% | ||
| OM | 32.44% | ||
| PM (TTM) | 19.68% | ||
| GM | 47.71% | ||
| FCFM | 18.97% |
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 Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.91 | ||
| Debt/EBITDA | 4.31 | ||
| Cap/Depr | 146.86% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 4.8 | ||
| Cash Conversion | 64.37% | ||
| Profit Quality | 96.37% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 2.8 |
F-Score6
WACC8.66%
ROIC/WACC4.3
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)6%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%27.78%
EPS Next Y10.65%
EPS Next 2Y11.32%
EPS Next 3Y11.57%
EPS Next 5Y10.03%
Revenue 1Y (TTM)6.68%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%16.01%
Revenue Next Year7.69%
Revenue Next 2Y6.96%
Revenue Next 3Y6.6%
Revenue Next 5Y6.89%
EBIT growth 1Y6.2%
EBIT growth 3Y6.16%
EBIT growth 5Y5.91%
EBIT Next Year11.06%
EBIT Next 3Y9.11%
EBIT Next 5Y9.08%
FCF growth 1Y8.65%
FCF growth 3Y-1%
FCF growth 5Y5.06%
OCF growth 1Y5.36%
OCF growth 3Y-0.33%
OCF growth 5Y5.13%