YUM! BRANDS INC (YUM) Stock Fundamental Analysis
USA - NYSE:YUM - US9884981013 - Common Stock
149.45 USD
+0.01 (+0.01%)
149.45 USD
0 (0%)
Overall YUM gets a fundamental rating of 5 out of 10. We evaluated YUM against 134 industry peers in the Hotels, Restaurants & Leisure industry. YUM scores excellent on profitability, but there are some minor concerns on its financial health. YUM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
YUM had positive earnings in the past year.
In the past year YUM had a positive cash flow from operations.
Each year in the past 5 years YUM has been profitable.
YUM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
YUM has a better Return On Assets (20.70%) than 97.01% of its industry peers.
Looking at the Return On Invested Capital, with a value of 44.91%, YUM belongs to the top of the industry, outperforming 97.76% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for YUM is significantly above the industry average of 15.67%.
The 3 year average ROIC (40.31%) for YUM is below the current ROIC(44.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.7% | ||
| ROE | N/A | ||
| ROIC | 44.91% |
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
YUM has a Profit Margin of 18.11%. This is amongst the best in the industry. YUM outperforms 91.79% of its industry peers.
In the last couple of years the Profit Margin of YUM has declined.
YUM has a Operating Margin of 32.07%. This is amongst the best in the industry. YUM outperforms 97.76% of its industry peers.
YUM's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 46.48%, YUM is in line with its industry, outperforming 45.52% of the companies in the same industry.
YUM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.07% | ||
| PM (TTM) | 18.11% | ||
| GM | 46.48% |
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
YUM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, YUM has less shares outstanding
YUM has less shares outstanding than it did 5 years ago.
YUM has a better debt/assets ratio than last year.
2.2 Solvency
YUM has an Altman-Z score of 2.50. This is not the best score and indicates that YUM is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of YUM (2.50) is better than 66.42% of its industry peers.
The Debt to FCF ratio of YUM is 7.42, which is on the high side as it means it would take YUM, 7.42 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.42, YUM is doing good in the industry, outperforming 67.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.42 | ||
| Altman-Z | 2.5 |
ROIC/WACC5.23
WACC8.58%
2.3 Liquidity
A Current Ratio of 0.82 indicates that YUM may have some problems paying its short term obligations.
YUM has a Current ratio (0.82) which is in line with its industry peers.
A Quick Ratio of 0.82 indicates that YUM may have some problems paying its short term obligations.
With a Quick ratio value of 0.82, YUM perfoms like the industry average, outperforming 49.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.00% over the past year.
The Earnings Per Share has been growing by 9.07% on average over the past years. This is quite good.
YUM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.30%.
Measured over the past years, YUM shows a small growth in Revenue. The Revenue has been growing by 6.17% on average per year.
EPS 1Y (TTM)10%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%6.67%
Revenue 1Y (TTM)11.3%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%9.64%
3.2 Future
Based on estimates for the next years, YUM will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.84% on average per year.
Based on estimates for the next years, YUM will show a small growth in Revenue. The Revenue will grow by 7.03% on average per year.
EPS Next Y10.48%
EPS Next 2Y10.5%
EPS Next 3Y11.01%
EPS Next 5Y11.84%
Revenue Next Year7.39%
Revenue Next 2Y6.9%
Revenue Next 3Y6.67%
Revenue Next 5Y7.03%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.13 indicates a quite expensive valuation of YUM.
YUM's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of YUM to the average of the S&P500 Index (27.29), we can say YUM is valued inline with the index average.
A Price/Forward Earnings ratio of 22.34 indicates a rather expensive valuation of YUM.
The rest of the industry has a similar Price/Forward Earnings ratio as YUM.
YUM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.13 | ||
| Fwd PE | 22.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YUM is valued a bit more expensive than 64.93% of the companies in the same industry.
YUM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. YUM is cheaper than 64.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.02 | ||
| EV/EBITDA | 19.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates YUM does not grow enough to justify the current Price/Earnings ratio.
YUM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.49
PEG (5Y)2.88
EPS Next 2Y10.5%
EPS Next 3Y11.01%
5. Dividend
5.1 Amount
YUM has a Yearly Dividend Yield of 1.96%.
YUM's Dividend Yield is a higher than the industry average which is at 6.79.
YUM's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
On average, the dividend of YUM grows each year by 9.75%, which is quite nice.
YUM has paid a dividend for at least 10 years, which is a reliable track record.
As YUM did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)9.75%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
53.77% of the earnings are spent on dividend by YUM. This is a bit on the high side, but may be sustainable.
The dividend of YUM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP53.77%
EPS Next 2Y10.5%
EPS Next 3Y11.01%
149.45
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners85.9%
Inst Owner Change0.1%
Ins Owners0.13%
Ins Owner Change-5.44%
Market Cap41.48B
Analysts70.86
Price Target161.74 (8.22%)
Short Float %2.58%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend2.69
Dividend Growth(5Y)9.75%
DP53.77%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.22%
Min EPS beat(2)-2.34%
Max EPS beat(2)-0.09%
EPS beat(4)0
Avg EPS beat(4)-1.66%
Min EPS beat(4)-4.11%
Max EPS beat(4)-0.09%
EPS beat(8)2
Avg EPS beat(8)-1.33%
EPS beat(12)4
Avg EPS beat(12)-0.67%
EPS beat(16)5
Avg EPS beat(16)-0.74%
Revenue beat(2)0
Avg Revenue beat(2)-2.86%
Min Revenue beat(2)-4.49%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-2.7%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)-0.3%
Revenue beat(8)0
Avg Revenue beat(8)-3.8%
Revenue beat(12)2
Avg Revenue beat(12)-2.52%
Revenue beat(16)2
Avg Revenue beat(16)-2.25%
PT rev (1m)-0.91%
PT rev (3m)-0.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.59%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.13 | ||
| Fwd PE | 22.34 | ||
| P/S | 5.25 | ||
| P/FCF | 27.02 | ||
| P/OCF | 22.6 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.16 |
EPS(TTM)5.72
EY3.83%
EPS(NY)6.69
Fwd EY4.48%
FCF(TTM)5.53
FCFY3.7%
OCF(TTM)6.61
OCFY4.42%
SpS28.49
BVpS-27.67
TBVpS-32.16
PEG (NY)2.49
PEG (5Y)2.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.7% | ||
| ROE | N/A | ||
| ROCE | 54.1% | ||
| ROIC | 44.91% | ||
| ROICexc | 52.49% | ||
| ROICexgc | 76.15% | ||
| OM | 32.07% | ||
| PM (TTM) | 18.11% | ||
| GM | 46.48% | ||
| FCFM | 19.41% |
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 Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.42 | ||
| Debt/EBITDA | 3.82 | ||
| Cap/Depr | 159.57% | ||
| Cap/Sales | 3.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.36% | ||
| Profit Quality | 107.19% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.5 |
F-Score6
WACC8.58%
ROIC/WACC5.23
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)10%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%6.67%
EPS Next Y10.48%
EPS Next 2Y10.5%
EPS Next 3Y11.01%
EPS Next 5Y11.84%
Revenue 1Y (TTM)11.3%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%9.64%
Revenue Next Year7.39%
Revenue Next 2Y6.9%
Revenue Next 3Y6.67%
Revenue Next 5Y7.03%
EBIT growth 1Y8.42%
EBIT growth 3Y6.16%
EBIT growth 5Y5.91%
EBIT Next Year12.67%
EBIT Next 3Y9.92%
EBIT Next 5Y8.84%
FCF growth 1Y20.02%
FCF growth 3Y-1%
FCF growth 5Y5.06%
OCF growth 1Y15.92%
OCF growth 3Y-0.33%
OCF growth 5Y5.13%