RESTAURANT BRANDS INTERN (QSR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:QSR - CA76131D1033 - Common Stock
72.39 USD
+0.17 (+0.24%)
72.44 USD
+0.05 (+0.07%)
We assign a fundamental rating of 4 out of 10 to QSR. QSR was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of QSR while its profitability can be described as average. QSR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
QSR had positive earnings in the past year.
QSR had a positive operating cash flow in the past year.
Each year in the past 5 years QSR has been profitable.
In the past 5 years QSR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of QSR (3.59%) is comparable to the rest of the industry.
The Return On Equity of QSR (27.27%) is better than 81.82% of its industry peers.
QSR has a better Return On Invested Capital (8.41%) than 65.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for QSR is below the industry average of 10.41%.
The 3 year average ROIC (8.03%) for QSR is below the current ROIC(8.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 27.27% | ||
| ROIC | 8.41% |
ROA(3y)4.55%
ROA(5y)3.88%
ROE(3y)38.23%
ROE(5y)34.92%
ROIC(3y)8.03%
ROIC(5y)7.44%
1.3 Margins
QSR has a Profit Margin of 9.95%. This is in the better half of the industry: QSR outperforms 72.73% of its industry peers.
In the last couple of years the Profit Margin of QSR has remained more or less at the same level.
The Operating Margin of QSR (25.95%) is better than 90.91% of its industry peers.
In the last couple of years the Operating Margin of QSR has declined.
With a decent Gross Margin value of 54.59%, QSR is doing good in the industry, outperforming 65.91% of the companies in the same industry.
In the last couple of years the Gross Margin of QSR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.95% | ||
| PM (TTM) | 9.95% | ||
| GM | 54.59% |
OM growth 3Y-5.89%
OM growth 5Y-5.16%
PM growth 3Y-5.95%
PM growth 5Y1.14%
GM growth 3Y-4.56%
GM growth 5Y-2.9%
2. Health
2.1 Basic Checks
QSR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, QSR has more shares outstanding
QSR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, QSR has about the same debt to assets ratio.
2.2 Solvency
QSR has an Altman-Z score of 1.42. This is a bad value and indicates that QSR is not financially healthy and even has some risk of bankruptcy.
QSR has a Altman-Z score (1.42) which is in line with its industry peers.
The Debt to FCF ratio of QSR is 10.93, which is on the high side as it means it would take QSR, 10.93 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.93, QSR perfoms like the industry average, outperforming 55.30% of the companies in the same industry.
QSR has a Debt/Equity ratio of 4.05. This is a high value indicating a heavy dependency on external financing.
QSR's Debt to Equity ratio of 4.05 is in line compared to the rest of the industry. QSR outperforms 43.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.93 | ||
| Altman-Z | 1.42 |
ROIC/WACC1.15
WACC7.31%
2.3 Liquidity
QSR has a Current Ratio of 1.06. This is a normal value and indicates that QSR is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.06, QSR perfoms like the industry average, outperforming 55.30% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that QSR may have some problems paying its short term obligations.
QSR's Quick ratio of 0.98 is in line compared to the rest of the industry. QSR outperforms 56.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
QSR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.95%.
Measured over the past 5 years, QSR shows a small growth in Earnings Per Share. The EPS has been growing by 4.05% on average per year.
The Revenue has grown by 16.82% in the past year. This is quite good.
QSR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.45% yearly.
EPS 1Y (TTM)7.95%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%10.75%
Revenue 1Y (TTM)16.82%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%6.9%
3.2 Future
The Earnings Per Share is expected to grow by 9.41% on average over the next years. This is quite good.
Based on estimates for the next years, QSR will show a small growth in Revenue. The Revenue will grow by 4.81% on average per year.
EPS Next Y11.39%
EPS Next 2Y10.27%
EPS Next 3Y9.81%
EPS Next 5Y9.41%
Revenue Next Year11.46%
Revenue Next 2Y7.59%
Revenue Next 3Y6.15%
Revenue Next 5Y4.81%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.51, the valuation of QSR can be described as rather expensive.
Based on the Price/Earnings ratio, QSR is valued a bit cheaper than 67.42% of the companies in the same industry.
When comparing the Price/Earnings ratio of QSR to the average of the S&P500 Index (26.15), we can say QSR is valued slightly cheaper.
QSR is valuated rather expensively with a Price/Forward Earnings ratio of 17.88.
Compared to the rest of the industry, the Price/Forward Earnings ratio of QSR indicates a somewhat cheap valuation: QSR is cheaper than 64.39% of the companies listed in the same industry.
QSR is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.51 | ||
| Fwd PE | 17.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of QSR is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, QSR is valued a bit cheaper than the industry average as 74.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.79 | ||
| EV/EBITDA | 13.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates QSR does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of QSR may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)5.06
EPS Next 2Y10.27%
EPS Next 3Y9.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.65%, QSR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.38, QSR pays a better dividend. On top of this QSR pays more dividend than 87.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, QSR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
5.2 History
The dividend of QSR decreases each year by -6.89%.
QSR has paid a dividend for at least 10 years, which is a reliable track record.
As QSR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-6.89%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
QSR pays out 118.00% of its income as dividend. This is not a sustainable payout ratio.
DP118%
EPS Next 2Y10.27%
EPS Next 3Y9.81%
72.39
+0.17 (+0.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner Change4.1%
Ins Owners1.34%
Ins Owner Change0%
Market Cap23.73B
Revenue(TTM)9.26B
Net Income(TTM)922.00M
Analysts75.83
Price Target79 (9.13%)
Short Float %3.69%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
Yearly Dividend2.29
Dividend Growth(5Y)-6.89%
DP118%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.91%
Min EPS beat(2)-3.69%
Max EPS beat(2)1.88%
EPS beat(4)2
Avg EPS beat(4)-1.24%
Min EPS beat(4)-5.14%
Max EPS beat(4)2.01%
EPS beat(8)4
Avg EPS beat(8)-0.97%
EPS beat(12)7
Avg EPS beat(12)1.59%
EPS beat(16)11
Avg EPS beat(16)3.48%
Revenue beat(2)2
Avg Revenue beat(2)2.01%
Min Revenue beat(2)1.24%
Max Revenue beat(2)2.77%
Revenue beat(4)2
Avg Revenue beat(4)0.55%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)2.77%
Revenue beat(8)4
Avg Revenue beat(8)0.39%
Revenue beat(12)7
Avg Revenue beat(12)0.14%
Revenue beat(16)11
Avg Revenue beat(16)0.73%
PT rev (1m)0.8%
PT rev (3m)0.46%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)0.43%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.51 | ||
| Fwd PE | 17.88 | ||
| P/S | 2.56 | ||
| P/FCF | 18.79 | ||
| P/OCF | 15.79 | ||
| P/B | 7.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.4 |
EPS(TTM)3.53
EY4.88%
EPS(NY)4.05
Fwd EY5.59%
FCF(TTM)3.85
FCFY5.32%
OCF(TTM)4.59
OCFY6.33%
SpS28.26
BVpS10.31
TBVpS-42.62
PEG (NY)1.8
PEG (5Y)5.06
Graham Number28.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 27.27% | ||
| ROCE | 10.53% | ||
| ROIC | 8.41% | ||
| ROICexc | 8.88% | ||
| ROICexgc | 45.02% | ||
| OM | 25.95% | ||
| PM (TTM) | 9.95% | ||
| GM | 54.59% | ||
| FCFM | 13.63% |
ROA(3y)4.55%
ROA(5y)3.88%
ROE(3y)38.23%
ROE(5y)34.92%
ROIC(3y)8.03%
ROIC(5y)7.44%
ROICexc(3y)8.51%
ROICexc(5y)7.9%
ROICexgc(3y)52.12%
ROICexgc(5y)49.93%
ROCE(3y)10.05%
ROCE(5y)9.31%
ROICexgc growth 3Y-4.66%
ROICexgc growth 5Y-3.62%
ROICexc growth 3Y5.76%
ROICexc growth 5Y1.01%
OM growth 3Y-5.89%
OM growth 5Y-5.16%
PM growth 3Y-5.95%
PM growth 5Y1.14%
GM growth 3Y-4.56%
GM growth 5Y-2.9%
F-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.93 | ||
| Debt/EBITDA | 5.06 | ||
| Cap/Depr | 79.47% | ||
| Cap/Sales | 2.59% | ||
| Interest Coverage | 3.29 | ||
| Cash Conversion | 55.54% | ||
| Profit Quality | 136.99% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.42 |
F-Score6
WACC7.31%
ROIC/WACC1.15
Cap/Depr(3y)63.87%
Cap/Depr(5y)61.25%
Cap/Sales(3y)1.88%
Cap/Sales(5y)1.97%
Profit Quality(3y)122.17%
Profit Quality(5y)145.05%
High Growth Momentum
Growth
EPS 1Y (TTM)7.95%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%10.75%
EPS Next Y11.39%
EPS Next 2Y10.27%
EPS Next 3Y9.81%
EPS Next 5Y9.41%
Revenue 1Y (TTM)16.82%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%6.9%
Revenue Next Year11.46%
Revenue Next 2Y7.59%
Revenue Next 3Y6.15%
Revenue Next 5Y4.81%
EBIT growth 1Y7.13%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year23.03%
EBIT Next 3Y11.54%
EBIT Next 5Y9.29%
FCF growth 1Y3.36%
FCF growth 3Y-7.03%
FCF growth 5Y-1.64%
OCF growth 1Y11.91%
OCF growth 3Y-4.51%
OCF growth 5Y0.36%
RESTAURANT BRANDS INTERN / QSR FAQ
What is the ChartMill fundamental rating of RESTAURANT BRANDS INTERN (QSR) stock?
ChartMill assigns a fundamental rating of 4 / 10 to QSR.
What is the valuation status for QSR stock?
ChartMill assigns a valuation rating of 5 / 10 to RESTAURANT BRANDS INTERN (QSR). This can be considered as Fairly Valued.
Can you provide the profitability details for RESTAURANT BRANDS INTERN?
RESTAURANT BRANDS INTERN (QSR) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for QSR stock?
The Price/Earnings (PE) ratio for RESTAURANT BRANDS INTERN (QSR) is 20.51 and the Price/Book (PB) ratio is 7.02.
What is the expected EPS growth for RESTAURANT BRANDS INTERN (QSR) stock?
The Earnings per Share (EPS) of RESTAURANT BRANDS INTERN (QSR) is expected to grow by 11.39% in the next year.