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.
QSR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
QSR has a Return On Assets of 3.59%. This is comparable to the rest of the industry: QSR outperforms 57.14% of its industry peers.
The Return On Equity of QSR (27.27%) is better than 81.20% of its industry peers.
QSR's Return On Invested Capital of 8.41% is fine compared to the rest of the industry. QSR outperforms 66.17% 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 10.39%.
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
With a decent Profit Margin value of 9.95%, QSR is doing good in the industry, outperforming 74.44% of the companies in the same industry.
QSR's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 25.95%, QSR belongs to the best of the industry, outperforming 90.98% of the companies in the same industry.
QSR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 54.59%, QSR is in the better half of the industry, outperforming 64.66% of the companies in the same industry.
QSR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.95% | ||
| 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.
QSR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for QSR has been increased compared to 5 years ago.
QSR has about the same debt/assets ratio as last year.
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 of 1.40. This is comparable to the rest of the industry: QSR outperforms 42.86% of its industry peers.
QSR has a debt to FCF ratio of 10.93. This is a negative value and a sign of low solvency as QSR would need 10.93 years to pay back of all of its debts.
QSR's Debt to FCF ratio of 10.93 is in line compared to the rest of the industry. QSR outperforms 57.89% of its industry peers.
QSR has a Debt/Equity ratio of 4.05. This is a high value indicating a heavy dependency on external financing.
QSR has a Debt to Equity ratio (4.05) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.05 | ||
| Debt/FCF | 10.93 | ||
| Altman-Z | 1.4 |
ROIC/WACC1.01
WACC8.35%
2.3 Liquidity
A Current Ratio of 1.06 indicates that QSR should not have too much problems paying its short term obligations.
QSR has a Current ratio (1.06) which 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.
The Quick ratio of QSR (0.98) 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%.
QSR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.05% yearly.
QSR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.82%.
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
QSR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.41% yearly.
QSR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
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
A Price/Earnings ratio of 19.80 indicates a rather expensive valuation of QSR.
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.
Based on the Price/Forward Earnings ratio of 17.25, the valuation of QSR can be described as rather expensive.
Based on the Price/Forward Earnings ratio, QSR is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
QSR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 17.25 |
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 75.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.14 | ||
| EV/EBITDA | 13.12 |
4.3 Compensation for Growth
The 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
With a Yearly Dividend Yield of 3.56%, QSR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.66, QSR pays a better dividend. On top of this QSR pays more dividend than 90.98% 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
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.
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 2Y10.29%
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
WACC8.35%
ROIC/WACC1.01
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.