RESTAURANT BRANDS INTERN (QSR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:QSR - CA76131D1033 - Common Stock
68.4 USD
-0.15 (-0.22%)
68.4 USD
0 (0%)
Overall QSR gets a fundamental rating of 4 out of 10. We evaluated QSR against 132 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of QSR while its profitability can be described as average. 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.
- In the past 5 years QSR has always been profitable.
- QSR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.59%, QSR is in line with its industry, outperforming 57.58% of the companies in the same industry.
- QSR's Return On Equity of 27.27% is amongst the best of the industry. QSR outperforms 81.06% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.41%, QSR is in the better half of the industry, outperforming 66.67% 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 10.36%.
- 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 has a better Profit Margin (9.95%) than 74.24% of its industry peers.
- QSR's Profit Margin has been stable in the last couple of years.
- QSR has a Operating Margin of 25.95%. This is amongst the best in the industry. QSR outperforms 90.91% of its industry peers.
- In the last couple of years the Operating Margin of QSR has declined.
- QSR's Gross Margin of 54.59% is fine compared to the rest of the industry. QSR outperforms 65.15% 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.
- Compared to 1 year ago, QSR has more shares outstanding
- QSR has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, QSR has about the same debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.39, we must say that QSR is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of QSR (1.39) is comparable to the rest of the industry.
- 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.
- The Debt to FCF ratio of QSR (10.93) is comparable to the rest of the industry.
- 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 | 1.39 |
ROIC/WACC1.07
WACC7.84%
2.3 Liquidity
- A Current Ratio of 1.06 indicates that QSR should not have too much problems paying its short term obligations.
- QSR's Current ratio of 1.06 is in line compared to the rest of the industry. QSR outperforms 56.06% of its industry peers.
- A Quick Ratio of 0.98 indicates that QSR may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.98, QSR is in line with its industry, outperforming 56.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.95% 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.
- QSR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.82%.
- 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)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 4.31% on average over the next years.
EPS Next Y11.48%
EPS Next 2Y10.24%
EPS Next 3Y9.61%
EPS Next 5Y9.41%
Revenue Next Year11.68%
Revenue Next 2Y7.74%
Revenue Next 3Y6.11%
Revenue Next 5Y4.31%
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 19.38, which indicates a rather expensive current valuation of QSR.
- 72.73% of the companies in the same industry are more expensive than QSR, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. QSR is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 16.90, QSR is valued correctly.
- QSR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. QSR is cheaper than 72.73% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, QSR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.38 | ||
| Fwd PE | 16.9 |
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 77.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.75 | ||
| EV/EBITDA | 12.94 |
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)1.69
PEG (5Y)4.78
EPS Next 2Y10.24%
EPS Next 3Y9.61%
5. Dividend
5.1 Amount
- QSR has a Yearly Dividend Yield of 3.62%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.21, QSR pays a better dividend. On top of this QSR pays more dividend than 90.15% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, QSR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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
- 118.00% of the earnings are spent on dividend by QSR. This is not a sustainable payout ratio.
DP118%
EPS Next 2Y10.24%
EPS Next 3Y9.61%
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.
Can you provide the valuation status for RESTAURANT BRANDS INTERN?
ChartMill assigns a valuation rating of 5 / 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.
What are the PE and PB ratios of RESTAURANT BRANDS INTERN (QSR) stock?
The Price/Earnings (PE) ratio for RESTAURANT BRANDS INTERN (QSR) is 19.38 and the Price/Book (PB) ratio is 6.63.
How financially healthy is RESTAURANT BRANDS INTERN?
The financial health rating of RESTAURANT BRANDS INTERN (QSR) is 2 / 10.