RESTAURANT BRANDS INTERN (QSR) Stock Fundamental Analysis
USA - NYSE:QSR - CA76131D1033 - Common Stock
67.49 USD
-0.27 (-0.4%)
67.49 USD
0 (0%)
Overall QSR gets a fundamental rating of 4 out of 10. We evaluated QSR against 134 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
In the past year QSR was profitable.
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
QSR has a Return On Assets of 3.34%. This is comparable to the rest of the industry: QSR outperforms 57.46% of its industry peers.
QSR has a Return On Equity of 25.90%. This is amongst the best in the industry. QSR outperforms 83.58% of its industry peers.
The Return On Invested Capital of QSR (8.19%) is better than 66.42% of its industry peers.
QSR had an Average Return On Invested Capital over the past 3 years of 8.03%. This is below the industry average of 10.67%.
The 3 year average ROIC (8.03%) for QSR is below the current ROIC(8.19%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 25.9% | ||
| ROIC | 8.19% |
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
The Profit Margin of QSR (9.43%) is better than 72.39% of its industry peers.
In the last couple of years the Profit Margin of QSR has remained more or less at the same level.
QSR has a better Operating Margin (25.82%) than 91.79% of its industry peers.
In the last couple of years the Operating Margin of QSR has declined.
Looking at the Gross Margin, with a value of 54.76%, QSR is in the better half of the industry, outperforming 65.67% of the companies in the same industry.
QSR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.82% | ||
| PM (TTM) | 9.43% | ||
| GM | 54.76% |
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.
The debt/assets ratio for QSR has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that QSR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.35, QSR is in line with its industry, outperforming 41.79% of the companies in the same industry.
QSR has a debt to FCF ratio of 11.45. This is a negative value and a sign of low solvency as QSR would need 11.45 years to pay back of all of its debts.
QSR has a Debt to FCF ratio (11.45) which is comparable to the rest of the industry.
A Debt/Equity ratio of 4.13 is on the high side and indicates that QSR has dependencies on debt financing.
QSR's Debt to Equity ratio of 4.13 is in line compared to the rest of the industry. QSR outperforms 41.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 11.45 | ||
| Altman-Z | 1.35 |
ROIC/WACC1.11
WACC7.36%
2.3 Liquidity
QSR has a Current Ratio of 1.01. This is a normal value and indicates that QSR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.01, QSR is in line with its industry, outperforming 55.22% of the companies in the same industry.
QSR has a Quick Ratio of 1.01. 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's Quick ratio of 0.95 is in line compared to the rest of the industry. QSR outperforms 56.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
QSR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.86%.
The Earnings Per Share has been growing slightly by 4.05% on average over the past years.
The Revenue has grown by 21.80% in the past year. This is a very strong growth!
Measured over the past years, QSR shows a quite strong growth in Revenue. The Revenue has been growing by 8.45% on average per year.
EPS 1Y (TTM)5.86%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%9.3%
Revenue 1Y (TTM)21.8%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%15.87%
3.2 Future
QSR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.42% yearly.
The Revenue is expected to grow by 4.63% on average over the next years.
EPS Next Y11.25%
EPS Next 2Y10.48%
EPS Next 3Y9.87%
EPS Next 5Y8.42%
Revenue Next Year10.63%
Revenue Next 2Y7.18%
Revenue Next 3Y5.84%
Revenue Next 5Y4.63%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
QSR is valuated rather expensively with a Price/Earnings ratio of 19.68.
Compared to the rest of the industry, the Price/Earnings ratio of QSR indicates a somewhat cheap valuation: QSR is cheaper than 68.66% of the companies listed in the same industry.
QSR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.77.
QSR is valuated correctly with a Price/Forward Earnings ratio of 16.60.
QSR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. QSR is cheaper than 68.66% of the companies in the same industry.
QSR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.68 | ||
| Fwd PE | 16.6 |
4.2 Price Multiples
QSR's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, QSR is valued a bit cheaper than the industry average as 79.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.18 | ||
| EV/EBITDA | 13.19 |
4.3 Compensation for Growth
QSR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of QSR may justify a higher PE ratio.
PEG (NY)1.75
PEG (5Y)4.85
EPS Next 2Y10.48%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
QSR has a Yearly Dividend Yield of 3.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.84, QSR pays a better dividend. On top of this QSR pays more dividend than 88.06% of the companies listed in the same industry.
QSR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
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
124.21% of the earnings are spent on dividend by QSR. This is not a sustainable payout ratio.
DP124.21%
EPS Next 2Y10.48%
EPS Next 3Y9.87%
67.49
-0.27 (-0.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner Change-0.01%
Ins Owners1.34%
Ins Owner Change0%
Market Cap22.12B
Revenue(TTM)9.11B
Net Income(TTM)859.00M
Analysts75.83
Price Target78.38 (16.14%)
Short Float %3.73%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
Yearly Dividend2.29
Dividend Growth(5Y)-6.89%
DP124.21%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.42%
Min EPS beat(2)-5.14%
Max EPS beat(2)-3.69%
EPS beat(4)1
Avg EPS beat(4)-2.52%
Min EPS beat(4)-5.14%
Max EPS beat(4)2.01%
EPS beat(8)4
Avg EPS beat(8)-0.68%
EPS beat(12)7
Avg EPS beat(12)2.98%
EPS beat(16)11
Avg EPS beat(16)3.51%
Revenue beat(2)1
Avg Revenue beat(2)0.48%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)2.77%
Revenue beat(4)1
Avg Revenue beat(4)-0.18%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)2.77%
Revenue beat(8)3
Avg Revenue beat(8)-0.14%
Revenue beat(12)7
Avg Revenue beat(12)0.26%
Revenue beat(16)10
Avg Revenue beat(16)0.48%
PT rev (1m)-0.29%
PT rev (3m)-1.23%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-0.04%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.98%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.68 | ||
| Fwd PE | 16.6 | ||
| P/S | 2.43 | ||
| P/FCF | 18.18 | ||
| P/OCF | 15.25 | ||
| P/B | 6.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.19 |
EPS(TTM)3.43
EY5.08%
EPS(NY)4.06
Fwd EY6.02%
FCF(TTM)3.71
FCFY5.5%
OCF(TTM)4.43
OCFY6.56%
SpS27.78
BVpS10.12
TBVpS-43.51
PEG (NY)1.75
PEG (5Y)4.85
Graham Number27.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 25.9% | ||
| ROCE | 10.25% | ||
| ROIC | 8.19% | ||
| ROICexc | 8.57% | ||
| ROICexgc | 43.39% | ||
| OM | 25.82% | ||
| PM (TTM) | 9.43% | ||
| GM | 54.76% | ||
| FCFM | 13.36% |
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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 11.45 | ||
| Debt/EBITDA | 5.16 | ||
| Cap/Depr | 76.97% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 3.11 | ||
| Cash Conversion | 54.65% | ||
| Profit Quality | 141.68% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.35 |
F-Score6
WACC7.36%
ROIC/WACC1.11
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)5.86%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%9.3%
EPS Next Y11.25%
EPS Next 2Y10.48%
EPS Next 3Y9.87%
EPS Next 5Y8.42%
Revenue 1Y (TTM)21.8%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%15.87%
Revenue Next Year10.63%
Revenue Next 2Y7.18%
Revenue Next 3Y5.84%
Revenue Next 5Y4.63%
EBIT growth 1Y5.95%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year23.03%
EBIT Next 3Y11.54%
EBIT Next 5Y9.29%
FCF growth 1Y2.44%
FCF growth 3Y-7.03%
FCF growth 5Y-1.64%
OCF growth 1Y10.93%
OCF growth 3Y-4.51%
OCF growth 5Y0.36%