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 60 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 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.
- TGR had a positive operating cash flow in the past year.
- TGR had positive earnings in each of the past 5 years.
- 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 100.00% of its industry peers.
- The Return On Invested Capital of TGR (36.61%) is better than 98.33% 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 11.82%.
| 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
- The Profit Margin of TGR (17.95%) is better than 86.67% of its industry peers.
- In the last couple of years the Profit Margin of TGR has declined.
- TGR has a Operating Margin of 32.23%. This is amongst the best in the industry. TGR outperforms 95.00% of its industry peers.
- TGR's Operating Margin has been stable in the last couple of years.
- TGR has a Gross Margin of 46.40%. This is comparable to the rest of the industry: TGR outperforms 48.33% of its industry peers.
- TGR's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TGR is creating value.
- TGR has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, TGR has less shares outstanding
- TGR has a better debt/assets ratio than last year.
2.2 Solvency
- TGR has an Altman-Z score of 2.81. 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.
- TGR's Altman-Z score of 2.81 is fine compared to the rest of the industry. TGR outperforms 73.33% 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.
- Looking at the Debt to FCF ratio, with a value of 7.38, TGR is in line with its industry, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.38 | ||
| Altman-Z | 2.81 |
ROIC/WACC4.62
WACC7.92%
2.3 Liquidity
- TGR has a Current 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.
- TGR has a better Current ratio (1.69) than 95.00% 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.
- TGR's Quick ratio of 1.69 is amongst the best of the industry. TGR outperforms 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 15.59% over the past year.
- Measured over the past years, TGR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.07% on average per year.
- TGR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.60%.
- 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)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.
- Based on estimates for the next years, TGR will show a small growth in Revenue. The Revenue will grow by 7.40% on average per year.
EPS Next Y12.09%
EPS Next 2Y10.72%
EPS Next 3Y10.98%
EPS Next 5Y11.24%
Revenue Next Year8.36%
Revenue Next 2Y8.99%
Revenue Next 3Y8.09%
Revenue Next 5Y7.4%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- Based on the Price/Earnings ratio of 25.61, the valuation of TGR can be described as expensive.
- Based on the Price/Earnings ratio, TGR is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
- TGR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 22.62, which indicates a rather expensive current valuation of TGR.
- TGR's Price/Forward Earnings is on the same level as the industry average.
- TGR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.61 | ||
| Fwd PE | 22.62 |
4.2 Price Multiples
- TGR's Enterprise Value to EBITDA is on the same level as the industry average.
- TGR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.97 | ||
| EV/EBITDA | 19.03 |
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)2.12
PEG (5Y)2.82
EPS Next 2Y10.72%
EPS Next 3Y10.98%
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 1.29.
- TGR's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
5.2 History
- On average, the dividend of TGR grows each year by 9.75%, which is quite nice.
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 2Y10.72%
EPS Next 3Y10.98%
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 3 / 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 25.61 and the Price/Book (PB) ratio is -5.62.
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 12.09% in the next year.