YUM! BRANDS INC (YUM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YUM - US9884981013 - Common Stock
151.28 USD
-0.9 (-0.59%)
151.28 USD
0 (0%)
Overall YUM gets a fundamental rating of 6 out of 10. We evaluated YUM against 133 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
YUM had positive earnings in the past year.
YUM had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 20.12%, YUM belongs to the best of the industry, outperforming 96.24% of the companies in the same industry.
YUM's Return On Invested Capital of 36.61% is amongst the best of the industry. YUM outperforms 97.74% 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 10.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.12% | ||
| ROE | N/A | ||
| ROIC | 36.61% |
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's Profit Margin of 17.95% is amongst the best of the industry. YUM outperforms 90.23% of its industry peers.
In the last couple of years the Profit Margin of YUM has declined.
With an excellent Operating Margin value of 32.23%, YUM belongs to the best of the industry, outperforming 97.74% of the companies in the same industry.
YUM's Operating Margin has been stable in the last couple of years.
The Gross Margin of YUM (46.40%) 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 | 32.23% | ||
| PM (TTM) | 17.95% | ||
| GM | 46.4% |
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.
YUM has less shares outstanding than it did 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
An Altman-Z score of 2.78 indicates that YUM is not a great score, but indicates only limited risk for bankruptcy at the moment.
YUM has a Altman-Z score of 2.78. This is in the better half of the industry: YUM outperforms 74.44% of its industry peers.
The Debt to FCF ratio of YUM is 7.38, which is on the high side as it means it would take YUM, 7.38 years of fcf income to pay off all of its debts.
YUM has a better Debt to FCF ratio (7.38) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.38 | ||
| Altman-Z | 2.78 |
ROIC/WACC4.68
WACC7.82%
2.3 Liquidity
A Current Ratio of 1.69 indicates that YUM should not have too much problems paying its short term obligations.
YUM's Current ratio of 1.69 is fine compared to the rest of the industry. YUM outperforms 75.19% of its industry peers.
YUM has a Quick Ratio of 1.69. This is a normal value and indicates that YUM is financially healthy and should not expect problems in meeting its short term obligations.
YUM has a Quick ratio of 1.69. This is in the better half of the industry: YUM outperforms 78.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 |
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.
YUM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.07% yearly.
The Revenue has grown by 11.60% in the past year. This is quite good.
YUM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.17% yearly.
EPS 1Y (TTM)15.59%
EPS 3Y7.03%
EPS 5Y9.07%
EPS Q2Q%15.33%
Revenue 1Y (TTM)11.6%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%8.38%
3.2 Future
YUM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.24% yearly.
The Revenue is expected to grow by 7.40% on average over the next years.
EPS Next Y12.09%
EPS Next 2Y10.72%
EPS Next 3Y10.98%
EPS Next 5Y11.24%
Revenue Next Year8.35%
Revenue Next 2Y8.96%
Revenue Next 3Y8.07%
Revenue Next 5Y7.4%
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 25.51 indicates a quite expensive valuation of YUM.
The rest of the industry has a similar Price/Earnings ratio as YUM.
When comparing the Price/Earnings ratio of YUM to the average of the S&P500 Index (26.51), we can say YUM is valued inline with the index average.
With a Price/Forward Earnings ratio of 22.52, YUM is valued on the expensive side.
YUM's Price/Forward Earnings ratio is in line with the industry average.
YUM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.51 | ||
| Fwd PE | 22.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YUM is valued a bit more expensive than 65.41% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of YUM indicates a somewhat cheap valuation: YUM is cheaper than 65.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.84 | ||
| EV/EBITDA | 18.81 |
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.
PEG (NY)2.11
PEG (5Y)2.81
EPS Next 2Y10.72%
EPS Next 3Y10.98%
5. Dividend
5.1 Amount
YUM has a Yearly Dividend Yield of 1.91%. 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 1.66.
Compared to an average S&P500 Dividend Yield of 2.00, YUM has a dividend comparable with the average S&P500 company.
| 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 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
53.84% 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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP53.84%
EPS Next 2Y10.72%
EPS Next 3Y10.98%
151.28
-0.9 (-0.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners85.9%
Inst Owner Change-0.31%
Ins Owners0.07%
Ins Owner Change-0.06%
Market Cap42.00B
Revenue(TTM)8.06B
Net Income(TTM)1.45B
Analysts72.57
Price Target167.59 (10.78%)
Short Float %2.98%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend2.69
Dividend Growth(5Y)9.75%
DP53.84%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.46%
Min EPS beat(2)-2.34%
Max EPS beat(2)5.25%
EPS beat(4)1
Avg EPS beat(4)0.68%
Min EPS beat(4)-2.34%
Max EPS beat(4)5.25%
EPS beat(8)2
Avg EPS beat(8)-2.15%
EPS beat(12)5
Avg EPS beat(12)0.24%
EPS beat(16)5
Avg EPS beat(16)-1.14%
Revenue beat(2)0
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)-0.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-4.49%
Max Revenue beat(4)-0.3%
Revenue beat(8)0
Avg Revenue beat(8)-3.29%
Revenue beat(12)2
Avg Revenue beat(12)-2.56%
Revenue beat(16)2
Avg Revenue beat(16)-2.28%
PT rev (1m)0.54%
PT rev (3m)3.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.57%
EPS NY rev (1m)1.34%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)1.64%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.51 | ||
| Fwd PE | 22.52 | ||
| P/S | 5.21 | ||
| P/FCF | 26.84 | ||
| P/OCF | 22.03 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.81 |
EPS(TTM)5.93
EY3.92%
EPS(NY)6.72
Fwd EY4.44%
FCF(TTM)5.64
FCFY3.73%
OCF(TTM)6.87
OCFY4.54%
SpS29.03
BVpS-27.03
TBVpS-31.5
PEG (NY)2.11
PEG (5Y)2.81
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.12% | ||
| ROE | N/A | ||
| ROCE | 44.09% | ||
| ROIC | 36.61% | ||
| ROICexc | 44.5% | ||
| ROICexgc | 59.82% | ||
| OM | 32.23% | ||
| PM (TTM) | 17.95% | ||
| GM | 46.4% | ||
| 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-Score7
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.38 | ||
| Debt/EBITDA | 4.12 | ||
| Cap/Depr | 176.29% | ||
| Cap/Sales | 4.24% | ||
| Interest Coverage | 5.02 | ||
| Cash Conversion | 68.3% | ||
| Profit Quality | 108.16% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 2.78 |
F-Score7
WACC7.82%
ROIC/WACC4.68
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 Y12.09%
EPS Next 2Y10.72%
EPS Next 3Y10.98%
EPS Next 5Y11.24%
Revenue 1Y (TTM)11.6%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%8.38%
Revenue Next Year8.35%
Revenue Next 2Y8.96%
Revenue Next 3Y8.07%
Revenue Next 5Y7.4%
EBIT growth 1Y10.74%
EBIT growth 3Y6.16%
EBIT growth 5Y5.91%
EBIT Next Year13.34%
EBIT Next 3Y9.78%
EBIT Next 5Y8.84%
FCF growth 1Y19.74%
FCF growth 3Y-1%
FCF growth 5Y5.06%
OCF growth 1Y18.67%
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 6 / 10 to YUM.
Can you provide the valuation status for YUM! BRANDS INC?
ChartMill assigns a valuation rating of 3 / 10 to YUM! BRANDS INC (YUM). This can be considered as Overvalued.
How profitable is YUM! BRANDS INC (YUM) stock?
YUM! BRANDS INC (YUM) has a profitability rating of 7 / 10.
What is the valuation of YUM! BRANDS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for YUM! BRANDS INC (YUM) is 25.51 and the Price/Book (PB) ratio is -5.6.
Can you provide the financial health for YUM stock?
The financial health rating of YUM! BRANDS INC (YUM) is 6 / 10.