YUM! BRANDS INC (TGR.DE) Stock Fundamental Analysis
FRA:TGR - Deutsche Boerse Ag - US9884981013 - Common Stock - Currency: EUR
Taking everything into account, TGR scores 5 out of 10 in our fundamental rating. TGR was compared to 52 industry peers in the Hotels, Restaurants & Leisure industry. While TGR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, TGR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
TGR had positive earnings in the past year.
TGR had a positive operating cash flow in the past year.
Each year in the past 5 years TGR has been profitable.
Each year in the past 5 years TGR had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 22.09%, TGR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 37.25%, TGR belongs to the best of the industry, outperforming 98.08% 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 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.09% | ||
| ROE | N/A | ||
| ROIC | 37.25% |
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
With an excellent Profit Margin value of 19.68%, TGR belongs to the best of the industry, outperforming 90.38% of the companies in the same industry.
TGR's Profit Margin has declined in the last couple of years.
TGR's Operating Margin of 32.44% is amongst the best of the industry. TGR outperforms 98.08% of its industry peers.
TGR's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 47.71%, TGR is in line with its industry, outperforming 48.08% of the companies in the same industry.
TGR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.44% | ||
| PM (TTM) | 19.68% | ||
| GM | 47.71% |
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
TGR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
TGR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TGR has less shares outstanding
Compared to 1 year ago, TGR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.65 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 (2.65) than 76.92% of its industry peers.
TGR has a debt to FCF ratio of 7.91. This is a slightly negative value and a sign of low solvency as TGR would need 7.91 years to pay back of all of its debts.
The Debt to FCF ratio of TGR (7.91) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.91 | ||
| Altman-Z | 2.65 |
ROIC/WACC4.45
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.47 indicates that TGR should not have too much problems paying its short term obligations.
TGR's Current ratio of 1.47 is amongst the best of the industry. TGR outperforms 84.62% of its industry peers.
A Quick Ratio of 1.47 indicates that TGR should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.47, TGR belongs to the best of the industry, outperforming 86.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.00% over the past year.
Measured over the past years, TGR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.07% on average per year.
TGR shows a small growth in Revenue. In the last year, the Revenue has grown by 6.68%.
Measured over the past years, TGR shows a small growth in Revenue. The Revenue has been growing by 6.17% on average per year.
EPS 1Y (TTM)6%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%27.78%
Revenue 1Y (TTM)6.68%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%16.01%
3.2 Future
Based on estimates for the next years, TGR will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.09% on average per year.
Based on estimates for the next years, TGR will show a small growth in Revenue. The Revenue will grow by 7.48% on average per year.
EPS Next Y10.86%
EPS Next 2Y11.36%
EPS Next 3Y11.67%
EPS Next 5Y11.09%
Revenue Next Year8%
Revenue Next 2Y7.12%
Revenue Next 3Y6.61%
Revenue Next 5Y7.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.13 indicates a quite expensive valuation of TGR.
The rest of the industry has a similar Price/Earnings ratio as TGR.
When comparing the Price/Earnings ratio of TGR to the average of the S&P500 Index (27.85), we can say TGR is valued inline with the index average.
TGR is valuated rather expensively with a Price/Forward Earnings ratio of 24.48.
TGR's Price/Forward Earnings ratio is in line with the industry average.
TGR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.13 | ||
| Fwd PE | 24.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TGR indicates a slightly more expensive valuation: TGR is more expensive than 65.38% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TGR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.92 | ||
| EV/EBITDA | 19.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TGR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.5
PEG (5Y)2.99
EPS Next 2Y11.36%
EPS Next 3Y11.67%
5. Dividend
5.1 Amount
TGR has a Yearly Dividend Yield of 1.92%.
TGR's Dividend Yield is a higher than the industry average which is at 3.09.
Compared to the average S&P500 Dividend Yield of 2.45, TGR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
The dividend of TGR is nicely growing with an annual growth rate of 9.75%!
Dividend Growth(5Y)9.75%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
50.61% of the earnings are spent on dividend by TGR. This is a bit on the high side, but may be sustainable.
TGR's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP50.61%
EPS Next 2Y11.36%
EPS Next 3Y11.67%
FRA:TGR (4/30/2025, 7:00:00 PM)
130.75
+1.1 (+0.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86.51%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap36.42B
Analysts69.41
Price Target136.89 (4.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend2.36
Dividend Growth(5Y)9.75%
DP50.61%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.11%
Min EPS beat(2)-4.11%
Max EPS beat(2)-0.11%
EPS beat(4)1
Avg EPS beat(4)-2.24%
Min EPS beat(4)-5.4%
Max EPS beat(4)0.66%
EPS beat(8)3
Avg EPS beat(8)-0.36%
EPS beat(12)4
Avg EPS beat(12)-1.11%
EPS beat(16)7
Avg EPS beat(16)2.05%
Revenue beat(2)0
Avg Revenue beat(2)-2.55%
Min Revenue beat(2)-4.8%
Max Revenue beat(2)-0.3%
Revenue beat(4)0
Avg Revenue beat(4)-3.95%
Min Revenue beat(4)-7.47%
Max Revenue beat(4)-0.3%
Revenue beat(8)1
Avg Revenue beat(8)-3.58%
Revenue beat(12)2
Avg Revenue beat(12)-2.49%
Revenue beat(16)4
Avg Revenue beat(16)-1.37%
PT rev (1m)-6.53%
PT rev (3m)-2.97%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-1.19%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)1.97%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.13 | ||
| Fwd PE | 24.48 | ||
| P/S | 5.49 | ||
| P/FCF | 28.92 | ||
| P/OCF | 24.52 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.87 |
EPS(TTM)4.82
EY3.69%
EPS(NY)5.34
Fwd EY4.09%
FCF(TTM)4.52
FCFY3.46%
OCF(TTM)5.33
OCFY4.08%
SpS23.83
BVpS-24.14
TBVpS-27.78
PEG (NY)2.5
PEG (5Y)2.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.09% | ||
| ROE | N/A | ||
| ROCE | 44.87% | ||
| ROIC | 37.25% | ||
| ROICexc | 41.99% | ||
| ROICexgc | 55.1% | ||
| OM | 32.44% | ||
| PM (TTM) | 19.68% | ||
| GM | 47.71% | ||
| FCFM | 18.97% |
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 Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.91 | ||
| Debt/EBITDA | 4.31 | ||
| Cap/Depr | 146.86% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 4.8 | ||
| Cash Conversion | 64.37% | ||
| Profit Quality | 96.37% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 2.65 |
F-Score6
WACC8.37%
ROIC/WACC4.45
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)6%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%27.78%
EPS Next Y10.86%
EPS Next 2Y11.36%
EPS Next 3Y11.67%
EPS Next 5Y11.09%
Revenue 1Y (TTM)6.68%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%16.01%
Revenue Next Year8%
Revenue Next 2Y7.12%
Revenue Next 3Y6.61%
Revenue Next 5Y7.48%
EBIT growth 1Y6.2%
EBIT growth 3Y6.16%
EBIT growth 5Y5.91%
EBIT Next Year13.69%
EBIT Next 3Y10.15%
EBIT Next 5Y8.96%
FCF growth 1Y8.65%
FCF growth 3Y-1%
FCF growth 5Y5.06%
OCF growth 1Y5.36%
OCF growth 3Y-0.33%
OCF growth 5Y5.13%