YUM! BRANDS INC (TGR.DE) Stock Fundamental Analysis
FRA:TGR - Deutsche Boerse Ag - US9884981013 - Common Stock - Currency: EUR
TGR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 58 industry peers in the Hotels, Restaurants & Leisure industry. TGR has an excellent profitability rating, but there are some minor concerns on its financial health. TGR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TGR had positive earnings in the past year.
In the past year TGR had a positive cash flow from operations.
TGR had positive earnings in each of the past 5 years.
In the past 5 years TGR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TGR (21.40%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 38.07%, TGR belongs to the top of the industry, outperforming 98.28% of the companies in the same industry.
TGR had an Average Return On Invested Capital over the past 3 years of 40.31%. This is significantly above the industry average of 10.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.4% | ||
| ROE | N/A | ||
| ROIC | 38.07% |
ROA(3y)23.46%
ROA(5y)22.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.31%
ROIC(5y)38.47%
1.3 Margins
The Profit Margin of TGR (18.42%) is better than 87.93% of its industry peers.
In the last couple of years the Profit Margin of TGR has declined.
Looking at the Operating Margin, with a value of 32.17%, TGR belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
TGR's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 47.03%, TGR perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
In the last couple of years the Gross Margin of TGR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.17% | ||
| PM (TTM) | 18.42% | ||
| GM | 47.03% |
OM growth 3Y1.43%
OM growth 5Y-0.24%
PM growth 3Y-6.29%
PM growth 5Y-3.17%
GM growth 3Y-0.26%
GM growth 5Y-1.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TGR is creating value.
Compared to 1 year ago, TGR has less shares outstanding
The number of shares outstanding for TGR has been reduced compared to 5 years ago.
The debt/assets ratio for TGR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.66 indicates that TGR is not a great score, but indicates only limited risk for bankruptcy at the moment.
TGR has a better Altman-Z score (2.66) than 74.14% of its industry peers.
TGR has a debt to FCF ratio of 7.82. This is a slightly negative value and a sign of low solvency as TGR would need 7.82 years to pay back of all of its debts.
TGR has a Debt to FCF ratio of 7.82. This is comparable to the rest of the industry: TGR outperforms 56.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.82 | ||
| Altman-Z | 2.66 |
ROIC/WACC4.33
WACC8.79%
2.3 Liquidity
A Current Ratio of 1.40 indicates that TGR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.40, TGR belongs to the top of the industry, outperforming 84.48% of the companies in the same industry.
A Quick Ratio of 1.40 indicates that TGR should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.40, TGR belongs to the best of the industry, outperforming 84.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
TGR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.03%.
TGR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.07% yearly.
Looking at the last year, TGR shows a quite strong growth in Revenue. The Revenue has grown by 10.09% in the last year.
TGR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.17% yearly.
EPS 1Y (TTM)7.03%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%13.04%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%11.83%
3.2 Future
TGR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.17% yearly.
The Revenue is expected to grow by 7.04% on average over the next years.
EPS Next Y11.14%
EPS Next 2Y11.27%
EPS Next 3Y11.42%
EPS Next 5Y12.17%
Revenue Next Year7.09%
Revenue Next 2Y6.7%
Revenue Next 3Y6.65%
Revenue Next 5Y7.04%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.21 indicates a quite expensive valuation of TGR.
Based on the Price/Earnings ratio, TGR is valued a bit cheaper than 60.34% of the companies in the same industry.
TGR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 22.59, which indicates a rather expensive current valuation of TGR.
60.34% of the companies in the same industry are more expensive than TGR, based on the Price/Forward Earnings ratio.
TGR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.21 | ||
| Fwd PE | 22.59 |
4.2 Price Multiples
TGR's Enterprise Value to EBITDA ratio is in line with the industry average.
TGR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.32 | ||
| EV/EBITDA | 19.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TGR may justify a higher PE ratio.
PEG (NY)2.44
PEG (5Y)3
EPS Next 2Y11.27%
EPS Next 3Y11.42%
5. Dividend
5.1 Amount
TGR has a Yearly Dividend Yield of 1.89%.
Compared to an average industry Dividend Yield of 3.15, TGR pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.37, TGR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
5.2 History
On average, the dividend of TGR grows each year by 9.75%, which is quite nice.
Dividend Growth(5Y)9.75%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
TGR pays out 53.40% of its income as dividend. This is a bit on the high side, but may be sustainable.
TGR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP53.4%
EPS Next 2Y11.27%
EPS Next 3Y11.42%
FRA:TGR (7/11/2025, 7:00:00 PM)
130.9
+2.25 (+1.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners85.29%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap36.38B
Analysts70.59
Price Target142.22 (8.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Yearly Dividend2.28
Dividend Growth(5Y)9.75%
DP53.4%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.1%
Min EPS beat(2)-0.11%
Max EPS beat(2)-0.09%
EPS beat(4)1
Avg EPS beat(4)-0.91%
Min EPS beat(4)-4.11%
Max EPS beat(4)0.66%
EPS beat(8)3
Avg EPS beat(8)0.51%
EPS beat(12)4
Avg EPS beat(12)-0.88%
EPS beat(16)6
Avg EPS beat(16)0.66%
Revenue beat(2)0
Avg Revenue beat(2)-2.39%
Min Revenue beat(2)-4.49%
Max Revenue beat(2)-0.3%
Revenue beat(4)0
Avg Revenue beat(4)-3.2%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)-0.3%
Revenue beat(8)0
Avg Revenue beat(8)-4.19%
Revenue beat(12)2
Avg Revenue beat(12)-2.54%
Revenue beat(16)3
Avg Revenue beat(16)-1.73%
PT rev (1m)-1.33%
PT rev (3m)-2.43%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-0.84%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.21 | ||
| Fwd PE | 22.59 | ||
| P/S | 5.51 | ||
| P/FCF | 29.32 | ||
| P/OCF | 24.6 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.68 |
EPS(TTM)4.81
EY3.67%
EPS(NY)5.79
Fwd EY4.43%
FCF(TTM)4.46
FCFY3.41%
OCF(TTM)5.32
OCFY4.07%
SpS23.78
BVpS-23.98
TBVpS-27.56
PEG (NY)2.44
PEG (5Y)3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.4% | ||
| ROE | N/A | ||
| ROCE | 45.85% | ||
| ROIC | 38.07% | ||
| ROICexc | 42.87% | ||
| ROICexgc | 56.51% | ||
| OM | 32.17% | ||
| PM (TTM) | 18.42% | ||
| GM | 47.03% | ||
| FCFM | 18.78% |
ROA(3y)23.46%
ROA(5y)22.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.31%
ROIC(5y)38.47%
ROICexc(3y)45.11%
ROICexc(5y)43.66%
ROICexgc(3y)59.72%
ROICexgc(5y)58.3%
ROCE(3y)48.55%
ROCE(5y)46.33%
ROICexcg growth 3Y0.45%
ROICexcg growth 5Y-3.03%
ROICexc growth 3Y0.78%
ROICexc growth 5Y-2.83%
OM growth 3Y1.43%
OM growth 5Y-0.24%
PM growth 3Y-6.29%
PM growth 5Y-3.17%
GM growth 3Y-0.26%
GM growth 5Y-1.04%
F-Score6
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.82 | ||
| Debt/EBITDA | 4.24 | ||
| Cap/Depr | 150.81% | ||
| Cap/Sales | 3.61% | ||
| Interest Coverage | 4.87 | ||
| Cash Conversion | 64.77% | ||
| Profit Quality | 101.97% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 2.66 |
F-Score6
WACC8.79%
ROIC/WACC4.33
Cap/Depr(3y)174.74%
Cap/Depr(5y)154.81%
Cap/Sales(3y)3.84%
Cap/Sales(5y)3.57%
Profit Quality(3y)88.51%
Profit Quality(5y)97.18%
High Growth Momentum
Growth
EPS 1Y (TTM)7.03%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%13.04%
EPS Next Y11.14%
EPS Next 2Y11.27%
EPS Next 3Y11.42%
EPS Next 5Y12.17%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%11.83%
Revenue Next Year7.09%
Revenue Next 2Y6.7%
Revenue Next 3Y6.65%
Revenue Next 5Y7.04%
EBIT growth 1Y8.08%
EBIT growth 3Y6.16%
EBIT growth 5Y5.91%
EBIT Next Year12.4%
EBIT Next 3Y9.71%
EBIT Next 5Y9.2%
FCF growth 1Y18.71%
FCF growth 3Y-1%
FCF growth 5Y5.06%
OCF growth 1Y13.72%
OCF growth 3Y-0.33%
OCF growth 5Y5.13%