RESTAURANT BRANDS INTERN (QSR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:QSR - CA76131D1033 - Common Stock
69.88 USD
+0.31 (+0.45%)
69.88 USD
0 (0%)
Overall QSR gets a fundamental rating of 4 out of 10. We evaluated QSR against 133 industry peers in the Hotels, Restaurants & Leisure industry. While QSR is still in line with the averages on profitability rating, there are concerns on its financial health. QSR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
QSR had positive earnings in the past year.
In the past year QSR had a positive cash flow from operations.
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
QSR has a Return On Assets (3.59%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 27.27%, QSR belongs to the top of the industry, outperforming 81.20% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.41%, QSR is in the better half of the industry, outperforming 66.17% of the companies in the same industry.
QSR had an Average Return On Invested Capital over the past 3 years of 8.03%. This is below the industry average of 10.39%.
The last Return On Invested Capital (8.41%) for QSR is above the 3 year average (8.03%), which is a sign of increasing profitability.
| 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's Profit Margin of 9.95% is fine compared to the rest of the industry. QSR outperforms 74.44% of its industry peers.
QSR's Profit Margin has been stable in the last couple of years.
QSR has a better Operating Margin (25.95%) than 90.98% of its industry peers.
QSR's Operating Margin has declined in the last couple of years.
The Gross Margin of QSR (54.59%) is better than 64.66% of its industry peers.
QSR's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), QSR is creating some value.
The number of shares outstanding for QSR has been increased compared to 1 year ago.
The number of shares outstanding for QSR has been increased compared to 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 1.40. 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 (1.40) 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.
The Debt to FCF ratio of QSR (10.93) is comparable to the rest of the industry.
A Debt/Equity ratio of 4.05 is on the high side and indicates that QSR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.05, QSR is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.93 | ||
| Altman-Z | 1.4 |
ROIC/WACC1.02
WACC8.22%
2.3 Liquidity
A Current Ratio of 1.06 indicates that QSR should not have too much problems paying its short term obligations.
The Current ratio of QSR (1.06) is comparable to the rest of the industry.
QSR has a Quick Ratio of 1.06. This is a bad value and indicates that QSR is not financially healthy enough and could expect problems in meeting its short term obligations.
QSR has a Quick ratio (0.98) which is comparable to the rest of the industry.
| 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.
The Revenue has been growing by 8.45% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y11.53%
EPS Next 2Y10.29%
EPS Next 3Y9.59%
EPS Next 5Y9.41%
Revenue Next Year11.66%
Revenue Next 2Y7.72%
Revenue Next 3Y6.05%
Revenue Next 5Y4.81%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.80, the valuation of QSR can be described as rather expensive.
Based on the Price/Earnings ratio, QSR is valued a bit cheaper than the industry average as 70.68% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.92. QSR is valued slightly cheaper when compared to this.
QSR is valuated rather expensively with a Price/Forward Earnings ratio of 17.25.
Based on the Price/Forward Earnings ratio, QSR is valued a bit cheaper than 68.42% of the companies in the same industry.
QSR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 17.25 |
4.2 Price Multiples
QSR's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, QSR is valued a bit cheaper than 75.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.14 | ||
| EV/EBITDA | 13.12 |
4.3 Compensation for Growth
QSR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
QSR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.72
PEG (5Y)4.88
EPS Next 2Y10.29%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
QSR has a Yearly Dividend Yield of 3.56%. Purely for dividend investing, there may be better candidates out there.
QSR's Dividend Yield is rather good when compared to the industry average which is at 1.66. QSR pays more dividend than 90.98% of the companies in the same industry.
QSR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
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.
QSR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 2Y10.29%
EPS Next 3Y9.59%
69.88
+0.31 (+0.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners93.18%
Inst Owner Change4.11%
Ins Owners1.36%
Ins Owner Change1.38%
Market Cap22.91B
Revenue(TTM)9.26B
Net Income(TTM)922.00M
Analysts76.52
Price Target79.06 (13.14%)
Short Float %6.45%
Short Ratio7.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
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)0.07%
PT rev (3m)0.58%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.88%
EPS NY rev (1m)0.13%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 17.25 | ||
| P/S | 2.47 | ||
| P/FCF | 18.14 | ||
| P/OCF | 15.24 | ||
| P/B | 6.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.12 |
EPS(TTM)3.53
EY5.05%
EPS(NY)4.05
Fwd EY5.8%
FCF(TTM)3.85
FCFY5.51%
OCF(TTM)4.58
OCFY6.56%
SpS28.26
BVpS10.31
TBVpS-42.62
PEG (NY)1.72
PEG (5Y)4.88
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 | 1.4 |
F-Score6
WACC8.22%
ROIC/WACC1.02
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 Y11.53%
EPS Next 2Y10.29%
EPS Next 3Y9.59%
EPS Next 5Y9.41%
Revenue 1Y (TTM)16.82%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%6.9%
Revenue Next Year11.66%
Revenue Next 2Y7.72%
Revenue Next 3Y6.05%
Revenue Next 5Y4.81%
EBIT growth 1Y7.13%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year22.7%
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 4 / 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 19.8 and the Price/Book (PB) ratio is 6.78.
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 11.53% in the next year.