RESTAURANT BRANDS INTERN (QSR) Stock Fundamental Analysis
NYSE:QSR - CA76131D1033 - Common Stock
62.41 USD
-0.09 (-0.14%)
62.41 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 is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years QSR had a positive operating cash flow.
1.2 Ratios
QSR has a Return On Assets (3.34%) which is in line with its industry peers.
QSR's Return On Equity of 25.90% is amongst the best of the industry. QSR outperforms 82.09% 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 significantly below the industry average of 16.00%.
The last Return On Invested Capital (8.19%) for QSR is above the 3 year average (8.03%), which is a sign of increasing profitability.
| 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.
With an excellent Operating Margin value of 25.82%, QSR belongs to the best of the industry, outperforming 91.79% of the companies in the same industry.
QSR's Operating Margin has declined in the last couple of years.
The Gross Margin of QSR (54.76%) is better than 65.67% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so QSR is destroying value.
The number of shares outstanding for QSR has been increased compared to 1 year ago.
Compared to 5 years ago, QSR has more shares outstanding
QSR has about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that QSR is in the distress zone and has some risk of bankruptcy.
QSR has a Altman-Z score of 1.30. This is comparable to the rest of the industry: QSR outperforms 41.04% of its industry peers.
The Debt to FCF ratio of QSR is 11.45, which is on the high side as it means it would take QSR, 11.45 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 11.45, QSR perfoms like the industry average, outperforming 55.22% of the companies in the same 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 41.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 11.45 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.98
WACC8.33%
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.
QSR has a Current ratio (1.01) which is in line with its industry peers.
A Quick Ratio of 0.95 indicates that QSR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, QSR is in line with its industry, outperforming 56.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.86% over the past year.
QSR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.05% yearly.
Looking at the last year, QSR shows a very strong growth in Revenue. The Revenue has grown by 21.80%.
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)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 8.77% yearly.
The Revenue is expected to grow by 3.15% on average over the next years.
EPS Next Y11.34%
EPS Next 2Y10.49%
EPS Next 3Y9.54%
EPS Next 5Y8.77%
Revenue Next Year10.67%
Revenue Next 2Y7.23%
Revenue Next 3Y5.9%
Revenue Next 5Y3.15%
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
With a Price/Earnings ratio of 18.20, QSR is valued on the expensive side.
Based on the Price/Earnings ratio, QSR is valued a bit cheaper than 72.39% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.84, QSR is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.35, which indicates a correct valuation of QSR.
73.88% of the companies in the same industry are more expensive than QSR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of QSR to the average of the S&P500 Index (22.48), we can say QSR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.2 | ||
| Fwd PE | 15.35 |
4.2 Price Multiples
QSR's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QSR indicates a rather cheap valuation: QSR is cheaper than 81.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.81 | ||
| EV/EBITDA | 12.57 |
4.3 Compensation for Growth
The 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)1.6
PEG (5Y)4.49
EPS Next 2Y10.49%
EPS Next 3Y9.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.93%, QSR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.09, QSR pays a better dividend. On top of this QSR pays more dividend than 89.55% 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
5.2 History
The dividend of QSR decreases each year by -6.89%.
QSR has been paying a dividend for at least 10 years, so it has 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
124.21% of the earnings are spent on dividend by QSR. This is not a sustainable payout ratio.
DP124.21%
EPS Next 2Y10.49%
EPS Next 3Y9.54%
62.41
-0.09 (-0.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners91.85%
Inst Owner Change2.26%
Ins Owners1.34%
Ins Owner Change-2.94%
Market Cap20.46B
Analysts77.39
Price Target78.64 (26.01%)
Short Float %4.2%
Short Ratio4.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
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)-0.9%
PT rev (3m)1.79%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)0.73%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-0.45%
Revenue NQ rev (1m)1.85%
Revenue NQ rev (3m)2.11%
Revenue NY rev (1m)1.61%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.2 | ||
| Fwd PE | 15.35 | ||
| P/S | 2.25 | ||
| P/FCF | 16.81 | ||
| P/OCF | 14.1 | ||
| P/B | 6.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.57 |
EPS(TTM)3.43
EY5.5%
EPS(NY)4.06
Fwd EY6.51%
FCF(TTM)3.71
FCFY5.95%
OCF(TTM)4.43
OCFY7.09%
SpS27.78
BVpS10.12
TBVpS-43.51
PEG (NY)1.6
PEG (5Y)4.49
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%
ROICexcg growth 3Y-4.66%
ROICexcg 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 | 1.3 |
F-Score6
WACC8.33%
ROIC/WACC0.98
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 Y11.34%
EPS Next 2Y10.49%
EPS Next 3Y9.54%
EPS Next 5Y8.77%
Revenue 1Y (TTM)21.8%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%15.87%
Revenue Next Year10.67%
Revenue Next 2Y7.23%
Revenue Next 3Y5.9%
Revenue Next 5Y3.15%
EBIT growth 1Y5.95%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year26.09%
EBIT Next 3Y13.39%
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%