YUM! BRANDS INC (TGR.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TGR - US9884981013 - Common Stock
129.85 EUR
-1.3 (-0.99%)
TGR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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. 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 20.12% is amongst the best of the industry. TGR outperforms 98.39% of its industry peers.
- With an excellent Return On Invested Capital value of 36.61%, TGR belongs to the best of the industry, outperforming 98.39% of the companies in the same industry.
- TGR had an Average Return On Invested Capital over the past 3 years of 40.31%. This 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
- TGR has a Profit Margin of 17.95%. This is amongst the best in the industry. TGR outperforms 87.10% 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 93.55% 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 53.23% of 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TGR is creating value.
- Compared to 1 year ago, TGR has less shares outstanding
- 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 2.82. 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 has a Altman-Z score of 2.82. This is in the better half of the industry: TGR outperforms 72.58% of its industry peers.
- The Debt to FCF ratio of TGR is 7.38, which is on the high side as it means it would take TGR, 7.38 years of fcf income to pay off all of its debts.
- TGR has a Debt to FCF ratio of 7.38. This is comparable to the rest of the industry: TGR outperforms 41.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.38 | ||
| Altman-Z | 2.82 |
ROIC/WACC4.75
WACC7.7%
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.
- With an excellent Current ratio value of 1.69, TGR belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
- A Quick Ratio of 1.69 indicates that TGR should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.69, TGR belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
| 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.
- 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.
- Looking at the last year, TGR shows a quite strong growth in Revenue. The Revenue has grown by 11.60% in the last year.
- 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
- TGR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.24% yearly.
- 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 Y12.29%
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
- TGR is valuated quite expensively with a Price/Earnings ratio of 26.13.
- The rest of the industry has a similar Price/Earnings ratio as TGR.
- The average S&P500 Price/Earnings ratio is at 28.82. TGR is around the same levels.
- With a Price/Forward Earnings ratio of 23.01, TGR is valued on the expensive side.
- TGR's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, TGR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.13 | ||
| Fwd PE | 23.01 |
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 | 27.48 | ||
| EV/EBITDA | 19.17 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- TGR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.13
PEG (5Y)2.88
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.
- TGR's Dividend Yield is a higher than the industry average which is at 1.36.
- 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
- 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 26.13 and the Price/Book (PB) ratio is -5.73.
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.