RESTAURANT BRANDS INTERN (QSR) Stock Fundamental Analysis
NYSE:QSR - New York Stock Exchange, Inc. - CA76131D1033 - Common Stock - Currency: USD
Overall QSR gets a fundamental rating of 4 out of 10. We evaluated QSR against 133 industry peers in the Hotels, Restaurants & Leisure industry. QSR scores excellent on profitability, but there are concerns on its financial health. QSR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year QSR was profitable.
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
The Return On Assets of QSR (3.82%) is better than 60.90% of its industry peers.
Looking at the Return On Equity, with a value of 30.49%, QSR belongs to the top of the industry, outperforming 83.46% of the companies in the same industry.
QSR's Return On Invested Capital of 8.29% is fine compared to the rest of the industry. QSR outperforms 69.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for QSR is significantly below the industry average of 13.97%.
The 3 year average ROIC (8.03%) for QSR is below the current ROIC(8.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 30.49% | ||
| ROIC | 8.29% |
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 10.82% is fine compared to the rest of the industry. QSR outperforms 78.20% 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 Operating Margin of 26.31%. This is amongst the best in the industry. QSR outperforms 92.48% of its industry peers.
QSR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 56.03%, QSR is in the better half of the industry, outperforming 67.67% of the companies in the same industry.
QSR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.31% | ||
| PM (TTM) | 10.82% | ||
| GM | 56.03% |
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) below the Cost of Capital (WACC), QSR is destroying value.
QSR has more shares outstanding than it did 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
QSR has an Altman-Z score of 1.37. This is a bad value and indicates that QSR is not financially healthy and even has some risk of bankruptcy.
QSR's Altman-Z score of 1.37 is in line compared to the rest of the industry. QSR outperforms 45.11% of its industry peers.
QSR has a debt to FCF ratio of 12.37. This is a negative value and a sign of low solvency as QSR would need 12.37 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.37, QSR is in line with its industry, outperforming 54.14% of the companies in the same industry.
QSR has a Debt/Equity ratio of 4.40. This is a high value indicating a heavy dependency on external financing.
QSR has a Debt to Equity ratio of 4.40. This is in the lower half of the industry: QSR underperforms 61.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.4 | ||
| Debt/FCF | 12.37 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.76
WACC10.85%
2.3 Liquidity
A Current Ratio of 0.96 indicates that QSR may have some problems paying its short term obligations.
With a Current ratio value of 0.96, QSR perfoms like the industry average, outperforming 51.88% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that QSR may have some problems paying its short term obligations.
QSR's Quick ratio of 0.90 is in line compared to the rest of the industry. QSR outperforms 53.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
QSR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.72%.
The Earnings Per Share has been growing slightly by 4.05% on average over the past years.
The Revenue has grown by 22.38% in the past year. This is a very strong growth!
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)3.72%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%2.74%
Revenue 1Y (TTM)22.38%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%21.28%
3.2 Future
Based on estimates for the next years, QSR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.99% on average per year.
Based on estimates for the next years, QSR will show a small growth in Revenue. The Revenue will grow by 3.26% on average per year.
EPS Next Y11.85%
EPS Next 2Y10.44%
EPS Next 3Y9.93%
EPS Next 5Y8.99%
Revenue Next Year8.79%
Revenue Next 2Y6.15%
Revenue Next 3Y5.44%
Revenue Next 5Y3.26%
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
The Price/Earnings ratio is 20.08, which indicates a rather expensive current valuation of QSR.
QSR's Price/Earnings ratio is a bit cheaper when compared to the industry. QSR is cheaper than 69.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, QSR is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.56, which indicates a correct valuation of QSR.
QSR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. QSR is cheaper than 65.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, QSR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.08 | ||
| Fwd PE | 16.56 |
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 74.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.55 | ||
| EV/EBITDA | 13.65 |
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)1.69
PEG (5Y)4.95
EPS Next 2Y10.44%
EPS Next 3Y9.93%
5. Dividend
5.1 Amount
QSR has a Yearly Dividend Yield of 3.42%. 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 3.82. QSR pays more dividend than 86.47% of the companies in the same industry.
QSR's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
5.2 History
The dividend of QSR decreases each year by -6.88%.
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)-6.88%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
QSR pays out 110.11% of its income as dividend. This is not a sustainable payout ratio.
DP110.11%
EPS Next 2Y10.44%
EPS Next 3Y9.93%
67.26
-1.05 (-1.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86.81%
Inst Owner Change3.83%
Ins Owners1.15%
Ins Owner Change14.83%
Market Cap22.04B
Analysts78.18
Price Target79.03 (17.5%)
Short Float %2.96%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
Yearly Dividend2.29
Dividend Growth(5Y)-6.88%
DP110.11%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.57%
Min EPS beat(2)-5.14%
Max EPS beat(2)2.01%
EPS beat(4)1
Avg EPS beat(4)-1.93%
Min EPS beat(4)-5.14%
Max EPS beat(4)2.01%
EPS beat(8)5
Avg EPS beat(8)0.98%
EPS beat(12)8
Avg EPS beat(12)4.24%
EPS beat(16)12
Avg EPS beat(16)5.29%
Revenue beat(2)0
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)1.76%
Revenue beat(8)3
Avg Revenue beat(8)-0.42%
Revenue beat(12)7
Avg Revenue beat(12)0.34%
Revenue beat(16)10
Avg Revenue beat(16)0.58%
PT rev (1m)0.1%
PT rev (3m)-1.44%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)-1.33%
EPS NY rev (3m)-1.63%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.08 | ||
| Fwd PE | 16.56 | ||
| P/S | 2.51 | ||
| P/FCF | 19.55 | ||
| P/OCF | 16.13 | ||
| P/B | 7.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.65 |
EPS(TTM)3.35
EY4.98%
EPS(NY)4.06
Fwd EY6.04%
FCF(TTM)3.44
FCFY5.11%
OCF(TTM)4.17
OCFY6.2%
SpS26.79
BVpS9.51
TBVpS-42.47
PEG (NY)1.69
PEG (5Y)4.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 30.49% | ||
| ROCE | 10.38% | ||
| ROIC | 8.29% | ||
| ROICexc | 8.64% | ||
| ROICexgc | 42.65% | ||
| OM | 26.31% | ||
| PM (TTM) | 10.82% | ||
| GM | 56.03% | ||
| FCFM | 12.84% |
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-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.4 | ||
| Debt/FCF | 12.37 | ||
| Debt/EBITDA | 5.29 | ||
| Cap/Depr | 83.57% | ||
| Cap/Sales | 2.72% | ||
| Interest Coverage | 3.01 | ||
| Cash Conversion | 52.64% | ||
| Profit Quality | 118.63% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.37 |
F-Score5
WACC10.85%
ROIC/WACC0.76
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)3.72%
EPS 3Y5.7%
EPS 5Y4.05%
EPS Q2Q%2.74%
EPS Next Y11.85%
EPS Next 2Y10.44%
EPS Next 3Y9.93%
EPS Next 5Y8.99%
Revenue 1Y (TTM)22.38%
Revenue growth 3Y13.57%
Revenue growth 5Y8.45%
Sales Q2Q%21.28%
Revenue Next Year8.79%
Revenue Next 2Y6.15%
Revenue Next 3Y5.44%
Revenue Next 5Y3.26%
EBIT growth 1Y6.21%
EBIT growth 3Y6.88%
EBIT growth 5Y2.85%
EBIT Next Year23.36%
EBIT Next 3Y11.29%
EBIT Next 5Y9.29%
FCF growth 1Y-9.33%
FCF growth 3Y-7.03%
FCF growth 5Y-1.64%
OCF growth 1Y1.11%
OCF growth 3Y-4.51%
OCF growth 5Y0.36%