YUM! BRANDS INC (YUM)
US9884981013 - Common Stock
YUM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. YUM scores excellent on profitability, but there are some minor concerns on its financial health. YUM is valied quite expensively at the moment, while 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.
In the past 5 years YUM has always been profitable.
YUM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
YUM has a Return On Assets of 23.62%. This is amongst the best in the industry. YUM outperforms 98.50% of its industry peers.
YUM's Return On Invested Capital of 37.26% is amongst the best of the industry. YUM outperforms 96.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for YUM is significantly above the industry average of 10.54%.
| 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
Looking at the Profit Margin, with a value of 21.13%, YUM belongs to the top of the industry, outperforming 95.49% of the companies in the same industry.
YUM's Profit Margin has declined in the last couple of years.
YUM has a better Operating Margin (32.48%) than 98.50% of its industry peers.
YUM's Operating Margin has been stable in the last couple of years.
YUM's Gross Margin of 48.57% is in line compared to the rest of the industry. YUM outperforms 48.87% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), YUM is creating value.
Compared to 1 year ago, YUM has more shares outstanding
YUM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, YUM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.38 indicates that YUM is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.38, YUM is in the better half of the industry, outperforming 69.17% of the companies in the same industry.
The Debt to FCF ratio of YUM is 8.19, which is on the high side as it means it would take YUM, 8.19 years of fcf income to pay off all of its debts.
YUM has a better Debt to FCF ratio (8.19) than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.19 | ||
| Altman-Z | 2.38 |
ROIC/WACC4.72
WACC7.9%
2.3 Liquidity
A Current Ratio of 1.37 indicates that YUM should not have too much problems paying its short term obligations.
The Current ratio of YUM (1.37) is better than 65.41% of its industry peers.
YUM has a Quick Ratio of 1.37. This is a normal value and indicates that YUM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of YUM (1.37) is better than 68.42% 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 YUM have decreased by -1.72% in the last year.
YUM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.35% yearly.
Looking at the last year, YUM shows a small growth in Revenue. The Revenue has grown by 2.32% in the last 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
Based on estimates for the next years, YUM will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.84% on average per year.
The Revenue is expected to grow by 6.79% on average over the next years.
EPS Next Y7.05%
EPS Next 2Y8.96%
EPS Next 3Y9.78%
EPS Next 5Y10.84%
Revenue Next Year5.48%
Revenue Next 2Y6.12%
Revenue Next 3Y6.26%
Revenue Next 5Y6.79%
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
The Price/Earnings ratio is 26.32, which means the current valuation is very expensive for YUM.
Based on the Price/Earnings ratio, YUM is valued a bit cheaper than 60.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.37, YUM is valued at the same level.
YUM is valuated rather expensively with a Price/Forward Earnings ratio of 21.99.
Based on the Price/Forward Earnings ratio, YUM is valued a bit cheaper than 61.65% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.85. YUM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.32 | ||
| Fwd PE | 21.99 |
4.2 Price Multiples
66.17% of the companies in the same industry are cheaper than YUM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, YUM is valued a bit cheaper than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.56 | ||
| EV/EBITDA | 19.05 |
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)3.73
PEG (5Y)2.54
EPS Next 2Y8.96%
EPS Next 3Y9.78%
5. Dividend
5.1 Amount
YUM has a Yearly Dividend Yield of 2.06%.
Compared to an average industry Dividend Yield of 2.95, YUM pays a better dividend. On top of this YUM pays more dividend than 80.45% of the companies listed in the same industry.
YUM's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
The dividend of YUM is nicely growing with an annual growth rate of 10.79%!
YUM has been paying a dividend for at least 10 years, so it has 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.
The dividend of YUM is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP48.17%
EPS Next 2Y8.96%
EPS Next 3Y9.78%
YUM! BRANDS INC
NYSE:YUM (12/24/2024, 12:42:19 PM)
After market: 135 0 (0%)135
+1.14 (+0.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners87.42%
Inst Owner Change-0.8%
Ins Owners0.14%
Ins Owner Change-2.36%
Market Cap37.67B
Analysts70.59
Price Target146.78 (8.73%)
Short Float %2.5%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
Dividend Growth(5Y)10.79%
DP48.17%
Div Incr Years6
Div Non Decr Years6
Ex-Date
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)-1.69%
PT rev (3m)-1.84%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-7.29%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-2.91%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-1.57%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.32 | ||
| Fwd PE | 21.99 | ||
| P/S | 5.22 | ||
| P/FCF | 27.56 | ||
| P/OCF | 23.2 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.05 |
EPS(TTM)5.13
EY3.8%
EPS(NY)6.14
Fwd EY4.55%
FCF(TTM)4.9
FCFY3.63%
OCF(TTM)5.82
OCFY4.31%
SpS25.88
BVpS-27.5
TBVpS-31.62
PEG (NY)3.73
PEG (5Y)2.54
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 | 2.38 |
F-Score6
WACC7.9%
ROIC/WACC4.72
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 Y7.05%
EPS Next 2Y8.96%
EPS Next 3Y9.78%
EPS Next 5Y10.84%
Revenue 1Y (TTM)2.32%
Revenue growth 3Y7.78%
Revenue growth 5Y4.46%
Sales Q2Q%6.91%
Revenue Next Year5.48%
Revenue Next 2Y6.12%
Revenue Next 3Y6.26%
Revenue Next 5Y6.79%
EBIT growth 1Y4.17%
EBIT growth 3Y12.05%
EBIT growth 5Y5.61%
EBIT Next Year12.96%
EBIT Next 3Y9.12%
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%