YUM! BRANDS INC (YUM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YUM - US9884981013 - Common Stock
153.21 USD
-0.59 (-0.38%)
153.21 USD
0 (0%)
Taking everything into account, YUM scores 6 out of 10 in our fundamental rating. YUM was compared to 132 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. YUM is valied quite expensively at the moment, while it does show a decent growth rate.
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.
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 (20.12%) is better than 96.21% of its industry peers.
YUM has a better Return On Invested Capital (36.61%) than 97.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for YUM is significantly above the industry average of 10.42%.
| 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 has a better Profit Margin (17.95%) than 90.15% 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 32.23%, YUM belongs to the top of the industry, outperforming 97.73% of the companies in the same industry.
YUM's Operating Margin has been stable in the last couple of years.
YUM's Gross Margin of 46.40% is in line compared to the rest of the industry. YUM outperforms 45.45% of its industry peers.
YUM's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), YUM is creating value.
The number of shares outstanding for YUM has been reduced compared to 1 year ago.
YUM has less shares outstanding than it did 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 2.80. 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.
Looking at the Altman-Z score, with a value of 2.80, YUM is in the better half of the industry, outperforming 73.48% of the companies in the same industry.
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.
The Debt to FCF ratio of YUM (7.38) is better than 71.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.38 | ||
| Altman-Z | 2.8 |
ROIC/WACC4.72
WACC7.76%
2.3 Liquidity
YUM has a Current 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.
With a decent Current ratio value of 1.69, YUM is doing good in the industry, outperforming 78.03% of the companies in the same industry.
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's Quick ratio of 1.69 is amongst the best of the industry. YUM outperforms 81.06% 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.
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 11.60%.
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
Based on estimates for the next years, YUM will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.24% on average per year.
The Revenue is expected to grow by 7.40% on average over the next years.
EPS Next Y10.61%
EPS Next 2Y10.69%
EPS Next 3Y11.2%
EPS Next 5Y11.24%
Revenue Next Year7.52%
Revenue Next 2Y7.03%
Revenue Next 3Y6.77%
Revenue Next 5Y7.4%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.84, YUM can be considered very expensive at the moment.
YUM's Price/Earnings ratio is in line with the industry average.
YUM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
A Price/Forward Earnings ratio of 22.82 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 (36.59), we can say YUM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.84 | ||
| Fwd PE | 22.82 |
4.2 Price Multiples
65.91% of the companies in the same industry are cheaper than YUM, based on the Enterprise Value to EBITDA ratio.
64.39% of the companies in the same industry are more expensive than YUM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.18 | ||
| EV/EBITDA | 19 |
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)2.44
PEG (5Y)2.85
EPS Next 2Y10.69%
EPS Next 3Y11.2%
5. Dividend
5.1 Amount
YUM has a Yearly Dividend Yield of 1.91%.
YUM's Dividend Yield is a higher than the industry average which is at 6.73.
YUM's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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.
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
YUM pays out 53.84% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of YUM is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP53.84%
EPS Next 2Y10.69%
EPS Next 3Y11.2%
153.21
-0.59 (-0.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86.31%
Inst Owner Change-0.33%
Ins Owners0.07%
Ins Owner Change-0.06%
Market Cap42.54B
Revenue(TTM)8.06B
Net Income(TTM)1.45B
Analysts70.56
Price Target166.68 (8.79%)
Short Float %2.03%
Short Ratio2.79
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-Date
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)3.06%
PT rev (3m)3.06%
EPS NQ rev (1m)-1.35%
EPS NQ rev (3m)-1.59%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)1.56%
Revenue NQ rev (3m)1.56%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.84 | ||
| Fwd PE | 22.82 | ||
| P/S | 5.28 | ||
| P/FCF | 27.18 | ||
| P/OCF | 22.31 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19 |
EPS(TTM)5.93
EY3.87%
EPS(NY)6.71
Fwd EY4.38%
FCF(TTM)5.64
FCFY3.68%
OCF(TTM)6.87
OCFY4.48%
SpS29.03
BVpS-27.03
TBVpS-31.5
PEG (NY)2.44
PEG (5Y)2.85
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 | 2.8 |
F-Score7
WACC7.76%
ROIC/WACC4.72
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 5Y11.24%
Revenue 1Y (TTM)11.6%
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 5Y7.4%
EBIT growth 1Y10.74%
EBIT growth 3Y6.16%
EBIT growth 5Y5.91%
EBIT Next Year12.87%
EBIT Next 3Y9.55%
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.
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 25.84 and the Price/Book (PB) ratio is -5.67.
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.