YUM! BRANDS INC (YUM) Stock Fundamental Analysis
NYSE:YUM - US9884981013 - Common Stock
143.67 USD
-0.88 (-0.61%)
143.67 USD
0 (0%)
Taking everything into account, YUM scores 5 out of 10 in our fundamental rating. YUM was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. YUM has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, YUM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year YUM was profitable.
In the past year YUM had a positive cash flow from operations.
In the past 5 years YUM has always been profitable.
YUM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
YUM's Return On Assets of 20.70% is amongst the best of the industry. YUM outperforms 96.27% of its industry peers.
With an excellent Return On Invested Capital value of 44.91%, YUM belongs to the best of the industry, outperforming 97.01% of the companies in the same industry.
YUM had an Average Return On Invested Capital over the past 3 years of 40.31%. This is significantly above the industry average of 16.00%.
The last Return On Invested Capital (44.91%) for YUM is above the 3 year average (40.31%), which is a sign of increasing profitability.
| 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 better Profit Margin (18.11%) than 91.04% of its industry peers.
YUM's Profit Margin has declined in the last couple of years.
The Operating Margin of YUM (32.07%) is better than 97.76% of its industry peers.
In the last couple of years the Operating Margin of YUM has remained more or less at the same level.
The Gross Margin of YUM (46.48%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of YUM has remained more or less at the same level.
| 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.
The number of shares outstanding for YUM has been reduced compared to 1 year ago.
Compared to 5 years ago, YUM has less shares outstanding
Compared to 1 year ago, YUM has an improved debt to assets ratio.
2.2 Solvency
YUM has an Altman-Z score of 2.44. 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.
YUM has a Altman-Z score of 2.44. This is in the better half of the industry: YUM outperforms 62.69% of its industry peers.
YUM has a debt to FCF ratio of 7.42. This is a slightly negative value and a sign of low solvency as YUM would need 7.42 years to pay back of all of its debts.
The Debt to FCF ratio of YUM (7.42) is better than 67.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.42 | ||
| Altman-Z | 2.44 |
ROIC/WACC5.15
WACC8.72%
2.3 Liquidity
YUM has a Current Ratio of 0.82. This is a bad value and indicates that YUM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.82, YUM is in line with its industry, outperforming 45.52% of the companies in the same industry.
YUM has a Quick Ratio of 0.82. This is a bad value and indicates that YUM is not financially healthy enough and could expect problems in meeting 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.
YUM 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, YUM shows a quite strong growth in Revenue. The Revenue has grown by 11.30% in the last year.
The Revenue has been growing slightly by 6.17% on average over the past years.
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 12.18% on average per year.
YUM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.03% yearly.
EPS Next Y10.48%
EPS Next 2Y10.5%
EPS Next 3Y11.01%
EPS Next 5Y12.18%
Revenue Next Year7.43%
Revenue Next 2Y6.84%
Revenue Next 3Y6.72%
Revenue Next 5Y7.03%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
YUM is valuated quite expensively with a Price/Earnings ratio of 25.12.
Based on the Price/Earnings ratio, YUM is valued a bit cheaper than the industry average as 61.94% of the companies are valued more expensively.
YUM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.03.
YUM is valuated rather expensively with a Price/Forward Earnings ratio of 21.47.
YUM's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, YUM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 21.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YUM is valued a bit more expensive than the industry average as 60.45% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of YUM indicates a somewhat cheap valuation: YUM is cheaper than 67.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.98 | ||
| EV/EBITDA | 18.66 |
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.
The decent profitability rating of YUM may justify a higher PE ratio.
PEG (NY)2.4
PEG (5Y)2.77
EPS Next 2Y10.5%
EPS Next 3Y11.01%
5. Dividend
5.1 Amount
YUM has a Yearly Dividend Yield of 1.96%. Purely for dividend investing, there may be better candidates out there.
YUM's Dividend Yield is a higher than the industry average which is at 4.09.
YUM's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of YUM is nicely growing with an annual growth rate of 9.75%!
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
YUM pays out 53.77% of its income as dividend. 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%
143.67
-0.88 (-0.61%)
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-9.83%
Market Cap39.87B
Analysts70.86
Price Target161.74 (12.58%)
Short Float %2.34%
Short Ratio3.16
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)-0.85%
PT rev (3m)0.02%
EPS NQ rev (1m)-2.95%
EPS NQ rev (3m)-1.84%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 21.47 | ||
| P/S | 5.04 | ||
| P/FCF | 25.98 | ||
| P/OCF | 21.73 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.66 |
EPS(TTM)5.72
EY3.98%
EPS(NY)6.69
Fwd EY4.66%
FCF(TTM)5.53
FCFY3.85%
OCF(TTM)6.61
OCFY4.6%
SpS28.49
BVpS-27.67
TBVpS-32.16
PEG (NY)2.4
PEG (5Y)2.77
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 | 2.44 |
F-Score6
WACC8.72%
ROIC/WACC5.15
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 5Y12.18%
Revenue 1Y (TTM)11.3%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%9.64%
Revenue Next Year7.43%
Revenue Next 2Y6.84%
Revenue Next 3Y6.72%
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 5Y9.2%
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%