YUM! BRANDS INC (YUM) Stock Fundamental Analysis
USA - NYSE:YUM - US9884981013 - Common Stock
149.12 USD
+1.51 (+1.02%)
149.12 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to YUM. YUM was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. YUM scores excellent on profitability, 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.
YUM had a positive operating cash flow in the past year.
Each year in the past 5 years YUM has been profitable.
In the past 5 years YUM always reported a positive cash flow from operatings.
1.2 Ratios
YUM's Return On Assets of 20.70% is amongst the best of the industry. YUM outperforms 96.97% of its industry peers.
YUM has a Return On Invested Capital of 44.91%. This is amongst the best in the industry. YUM outperforms 97.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for YUM is significantly above the industry average of 10.78%.
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 91.67% of its industry peers.
In the last couple of years the Profit Margin of YUM has declined.
Looking at the Operating Margin, with a value of 32.07%, YUM belongs to the top of the industry, outperforming 97.73% of the companies in the same industry.
In the last couple of years the Operating Margin of YUM has remained more or less at the same level.
YUM has a Gross Margin of 46.48%. This is comparable to the rest of the industry: YUM outperforms 47.73% of its industry peers.
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
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 less shares outstanding
The number of shares outstanding for YUM has been reduced compared to 5 years ago.
The debt/assets ratio for YUM has been reduced compared to a year ago.
2.2 Solvency
YUM has an Altman-Z score of 2.48. 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 2.48 is fine compared to the rest of the industry. YUM outperforms 68.94% 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.
Looking at the Debt to FCF ratio, with a value of 7.42, YUM is in the better half of the industry, outperforming 70.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.42 | ||
| Altman-Z | 2.48 |
ROIC/WACC5.85
WACC7.68%
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 47.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
YUM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.59%, which is quite good.
The Earnings Per Share has been growing by 9.07% on average over the past years. This is quite good.
Looking at the last year, YUM shows a small growth in Revenue. The Revenue has grown by 6.68% in the last year.
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)15.59%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%15.33%
Revenue 1Y (TTM)6.68%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%8.38%
3.2 Future
The Earnings Per Share is expected to grow by 11.85% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.79% on average over the next years.
EPS Next Y10.61%
EPS Next 2Y10.69%
EPS Next 3Y11.2%
EPS Next 5Y11.85%
Revenue Next Year7.52%
Revenue Next 2Y7.03%
Revenue Next 3Y6.77%
Revenue Next 5Y6.79%
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.
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
The Price/Earnings ratio is 25.15, which means the current valuation is very expensive for YUM.
YUM's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.83. YUM is around the same levels.
A Price/Forward Earnings ratio of 22.21 indicates a rather expensive valuation of YUM.
YUM's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of YUM to the average of the S&P500 Index (32.68), we can say YUM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 22.21 |
4.2 Price Multiples
YUM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. YUM is more expensive than 68.94% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, YUM is valued a bit cheaper than the industry average as 61.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.96 | ||
| EV/EBITDA | 18.97 |
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)2.37
PEG (5Y)2.77
EPS Next 2Y10.69%
EPS Next 3Y11.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.91%, YUM has a reasonable but not impressive dividend return.
YUM's Dividend Yield is a higher than the industry average which is at 4.33.
YUM's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
On average, the dividend of YUM grows each year by 9.75%, which is quite nice.
YUM has been paying a dividend for at least 10 years, so it has a reliable track record.
YUM has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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.
YUM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP53.77%
EPS Next 2Y10.69%
EPS Next 3Y11.2%
149.12
+1.51 (+1.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86.31%
Inst Owner Change-0.21%
Ins Owners0.07%
Ins Owner Change-5.8%
Market Cap41.39B
Revenue(TTM)7.55B
Net Income(TTM)1.43B
Analysts70.56
Price Target162.78 (9.16%)
Short Float %2.13%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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)0.64%
PT rev (3m)-0.21%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)-2.41%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-0.49%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 22.21 | ||
| P/S | 5.23 | ||
| P/FCF | 26.96 | ||
| P/OCF | 22.55 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.97 |
EPS(TTM)5.93
EY3.98%
EPS(NY)6.71
Fwd EY4.5%
FCF(TTM)5.53
FCFY3.71%
OCF(TTM)6.61
OCFY4.43%
SpS28.49
BVpS-27.67
TBVpS-32.16
PEG (NY)2.37
PEG (5Y)2.77
Graham NumberN/A
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%
ROICexgc growth 3Y0.45%
ROICexgc 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 | 2.48 |
F-Score6
WACC7.68%
ROIC/WACC5.85
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)15.59%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%15.33%
EPS Next Y10.61%
EPS Next 2Y10.69%
EPS Next 3Y11.2%
EPS Next 5Y11.85%
Revenue 1Y (TTM)6.68%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%8.38%
Revenue Next Year7.52%
Revenue Next 2Y7.03%
Revenue Next 3Y6.77%
Revenue Next 5Y6.79%
EBIT growth 1Y8.42%
EBIT growth 3Y6.16%
EBIT growth 5Y5.91%
EBIT Next Year12.87%
EBIT Next 3Y9.55%
EBIT Next 5Y9.29%
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%
YUM! BRANDS INC / YUM FAQ
Can you provide the ChartMill fundamental rating for YUM! BRANDS INC?
ChartMill assigns a fundamental rating of 5 / 10 to YUM.
What is the valuation status of YUM! BRANDS INC (YUM) stock?
ChartMill assigns a valuation rating of 3 / 10 to YUM! BRANDS INC (YUM). This can be considered as Overvalued.
Can you provide the profitability details for YUM! BRANDS INC?
YUM! BRANDS INC (YUM) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for YUM stock?
The Price/Earnings (PE) ratio for YUM! BRANDS INC (YUM) is 25.15 and the Price/Book (PB) ratio is -5.39.
What is the earnings growth outlook for YUM! BRANDS INC?
The Earnings per Share (EPS) of YUM! BRANDS INC (YUM) is expected to grow by 10.61% in the next year.