YUM! BRANDS INC (YUM)
US9884981013 - Common Stock
YUM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. While YUM belongs to the best of the industry regarding profitability, 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
YUM had positive earnings in the past year.
In the past year YUM had a positive cash flow from operations.
YUM had positive earnings in each of the past 5 years.
YUM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of YUM (25.63%) is better than 98.51% of its industry peers.
With an excellent Return On Invested Capital value of 39.00%, YUM belongs to the best of the industry, outperforming 97.76% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for YUM is significantly above the industry average of 10.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.63% | ||
| ROE | N/A | ||
| ROIC | 39% |
ROA(3y)24.9%
ROA(5y)22.98%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.71%
ROIC(5y)39.66%
1.3 Margins
The Profit Margin of YUM (22.57%) is better than 96.27% of its industry peers.
YUM's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 32.59%, YUM belongs to the best of the industry, outperforming 96.27% of the companies in the same industry.
YUM's Operating Margin has been stable in the last couple of years.
YUM has a Gross Margin (49.41%) which 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 | 32.59% | ||
| PM (TTM) | 22.57% | ||
| GM | 49.41% |
OM growth 3Y3.97%
OM growth 5Y1.1%
PM growth 3Y12.16%
PM growth 5Y-3.6%
GM growth 3Y1.29%
GM growth 5Y1.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so YUM is creating value.
Compared to 1 year ago, YUM has more shares outstanding
Compared to 5 years ago, YUM has less shares outstanding
YUM has a better debt/assets ratio than last year.
2.2 Solvency
YUM has an Altman-Z score of 2.41. 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's Altman-Z score of 2.41 is fine compared to the rest of the industry. YUM outperforms 75.37% of its industry peers.
YUM has a debt to FCF ratio of 8.49. This is a slightly negative value and a sign of low solvency as YUM would need 8.49 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 8.49, YUM is doing good in the industry, outperforming 63.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.49 | ||
| Altman-Z | 2.41 |
ROIC/WACC4.55
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.26 indicates that YUM should not have too much problems paying its short term obligations.
YUM has a better Current ratio (1.26) than 61.19% of its industry peers.
A Quick Ratio of 1.26 indicates that YUM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.26, YUM is in the better half of the industry, outperforming 66.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
YUM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.89%, which is quite good.
The Earnings Per Share has been growing by 10.35% on average over the past years. This is quite good.
YUM shows a small growth in Revenue. In the last year, the Revenue has grown by 3.42%.
Measured over the past years, YUM shows a small growth in Revenue. The Revenue has been growing by 4.46% on average per year.
EPS 1Y (TTM)14.89%
EPS 3Y12.61%
EPS 5Y10.35%
EPS growth Q2Q-3.82%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y7.78%
Revenue growth 5Y4.46%
Revenue growth Q2Q0.84%
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 10.75% on average per year.
The Revenue is expected to grow by 6.15% on average over the next years.
EPS Next Y13.1%
EPS Next 2Y12.76%
EPS Next 3Y12.89%
EPS Next 5Y10.75%
Revenue Next Year8.9%
Revenue Next 2Y7.79%
Revenue Next 3Y7.93%
Revenue Next 5Y6.15%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.18, the valuation of YUM can be described as expensive.
YUM's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.25. YUM is around the same levels.
YUM is valuated rather expensively with a Price/Forward Earnings ratio of 24.03.
YUM's Price/Forward Earnings is on the same level as the industry average.
YUM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.18 | ||
| Fwd PE | 24.03 |
4.2 Price Multiples
69.40% of the companies in the same industry are cheaper than YUM, based on the Enterprise Value to EBITDA ratio.
YUM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.99 | ||
| EV/EBITDA | 20.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
YUM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as YUM's earnings are expected to grow with 12.89% in the coming years.
PEG (NY)2.07
PEG (5Y)2.63
EPS Next 2Y12.76%
EPS Next 3Y12.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.94%, YUM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.62, YUM pays a better dividend. On top of this YUM pays more dividend than 81.34% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.45, YUM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
On average, the dividend of YUM grows each year by 10.79%, which is quite nice.
YUM has been paying a dividend for at least 10 years, so it has 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)10.79%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
42.45% of the earnings are spent on dividend by YUM. This is a bit on the high side, but may be sustainable.
YUM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP42.45%
EPS Next 2Y12.76%
EPS Next 3Y12.89%
YUM! BRANDS INC
NYSE:YUM (4/25/2024, 9:50:07 AM)
140.51
-1.3 (-0.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap39.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.18 | ||
| Fwd PE | 24.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.07
PEG (5Y)2.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.63% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.59% | ||
| PM (TTM) | 22.57% | ||
| GM | 49.41% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)14.89%
EPS 3Y12.61%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.42%
Revenue growth 3Y7.78%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y