YUM! BRANDS INC (YUM)
US9884981013 - Common Stock
We assign a fundamental rating of 5 out of 10 to YUM. YUM was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. YUM has an excellent profitability rating, but there are some minor concerns on its financial health. YUM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year YUM was profitable.
YUM had a positive operating cash flow in the past year.
Each year in the past 5 years YUM has been profitable.
In the past 5 years YUM always reported a positive cash flow from operatings.
1.2 Ratios
YUM has a better Return On Assets (23.62%) than 98.51% of its industry peers.
YUM has a Return On Invested Capital of 37.26%. This is amongst the best in the industry. YUM outperforms 97.01% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for YUM is significantly above the industry average of 10.46%.
| 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
The Profit Margin of YUM (21.13%) is better than 96.27% of its industry peers.
In the last couple of years the Profit Margin of YUM has declined.
Looking at the Operating Margin, with a value of 32.48%, YUM belongs to the top of the industry, outperforming 98.51% of the companies in the same industry.
In the last couple of years the Operating Margin of YUM has remained more or less at the same level.
Looking at the Gross Margin, with a value of 48.57%, YUM is in line with its industry, outperforming 49.25% of the companies in the same industry.
In the last couple of years the Gross Margin of YUM has remained more or less at the same level.
| 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 YUM is creating value.
YUM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, YUM has less shares outstanding
Compared to 1 year ago, YUM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.37 indicates that YUM is not a great score, but indicates only limited risk for bankruptcy at the moment.
YUM's Altman-Z score of 2.37 is fine compared to the rest of the industry. YUM outperforms 68.66% of its industry peers.
YUM has a debt to FCF ratio of 8.19. This is a slightly negative value and a sign of low solvency as YUM would need 8.19 years to pay back of all of its debts.
YUM has a Debt to FCF ratio of 8.19. This is in the better half of the industry: YUM outperforms 67.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.19 | ||
| Altman-Z | 2.37 |
ROIC/WACC4.72
WACC7.89%
2.3 Liquidity
A Current Ratio of 1.37 indicates that YUM should not have too much problems paying its short term obligations.
YUM has a Current ratio of 1.37. This is in the better half of the industry: YUM outperforms 65.67% of its industry peers.
A Quick Ratio of 1.37 indicates that YUM should not have too much problems paying its short term obligations.
YUM's Quick ratio of 1.37 is fine compared to the rest of the industry. YUM outperforms 68.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
YUM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.72%.
YUM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.35% yearly.
The Revenue has been growing slightly by 2.32% in the past year.
YUM 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
The Earnings Per Share is expected to grow by 12.97% on average over the next years. This is quite good.
YUM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.60% yearly.
EPS Next Y7.45%
EPS Next 2Y9.25%
EPS Next 3Y9.95%
EPS Next 5Y12.97%
Revenue Next Year5.8%
Revenue Next 2Y6.3%
Revenue Next 3Y6.34%
Revenue Next 5Y6.6%
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.
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
The Price/Earnings ratio is 26.16, which means the current valuation is very expensive for YUM.
Based on the Price/Earnings ratio, YUM is valued a bit cheaper than 61.94% of the companies in the same industry.
YUM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.75, which indicates a rather expensive current valuation of YUM.
YUM's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, YUM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.16 | ||
| Fwd PE | 21.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YUM is valued a bit more expensive than the industry average as 66.42% of the companies are valued more cheaply.
67.91% of the companies in the same industry are more expensive than YUM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.4 | ||
| EV/EBITDA | 18.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates YUM does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of YUM may justify a higher PE ratio.
PEG (NY)3.51
PEG (5Y)2.53
EPS Next 2Y9.25%
EPS Next 3Y9.95%
5. Dividend
5.1 Amount
YUM has a Yearly Dividend Yield of 1.96%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.83, YUM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, YUM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
On average, the dividend of YUM grows each year by 10.79%, which is quite nice.
YUM has paid a dividend for at least 10 years, which is a reliable track record.
YUM has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)10.79%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
48.17% of the earnings are spent on dividend by YUM. This is a bit on the high side, but may be sustainable.
YUM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP48.17%
EPS Next 2Y9.25%
EPS Next 3Y9.95%
YUM! BRANDS INC
NYSE:YUM (11/21/2024, 8:04:00 PM)
After market: 134.22 0 (0%)134.22
+1.34 (+1.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap37.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.16 | ||
| Fwd PE | 21.75 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.51
PEG (5Y)2.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.62% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.48% | ||
| PM (TTM) | 21.13% | ||
| GM | 48.57% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-1.72%
EPS 3Y12.61%
EPS 5Y
EPS Q2Q%
EPS Next Y7.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.32%
Revenue growth 3Y7.78%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y