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%)
Overall YUM gets a fundamental rating of 5 out of 10. We evaluated YUM against 132 industry peers in the Hotels, Restaurants & Leisure industry. YUM has an excellent profitability rating, but there are some minor concerns on its financial health. YUM is quite expensive at the moment. It does show a decent growth rate.
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.
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 has a Return On Assets of 20.70%. This is amongst the best in the industry. YUM outperforms 96.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 44.91%, YUM belongs to the top of the industry, outperforming 97.73% 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 10.78%.
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
Looking at the Profit Margin, with a value of 18.11%, YUM belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
YUM's Profit Margin has declined in the last couple of years.
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.
YUM's Operating Margin has been stable in the last couple of years.
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.
YUM's Gross Margin has been stable in the last couple of years.
| 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
YUM has a better debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 2.48, YUM is in the better half of the industry, outperforming 68.94% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 7.42, YUM is doing good in 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 of 0.82. This is comparable to the rest of the industry: YUM outperforms 43.94% of its industry peers.
A Quick Ratio of 0.82 indicates that YUM may have some problems paying its short term obligations.
YUM's Quick ratio of 0.82 is in line compared to the rest of the industry. YUM outperforms 47.73% of its industry peers.
| 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 15.59% 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.
The Revenue has been growing slightly by 6.68% in the past year.
The Revenue has been growing slightly by 6.17% on average over the past years.
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
YUM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.85% yearly.
Based on estimates for the next years, YUM will show a small growth in Revenue. The Revenue will grow by 6.79% on average per year.
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
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
A Price/Earnings ratio of 25.15 indicates a quite expensive valuation of YUM.
The rest of the industry has a similar Price/Earnings ratio as YUM.
The average S&P500 Price/Earnings ratio is at 25.83. YUM is around the same levels.
Based on the Price/Forward Earnings ratio of 22.21, the valuation of YUM can be described as rather expensive.
YUM's Price/Forward Earnings ratio is in line with the industry average.
YUM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 22.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of YUM indicates a slightly more expensive valuation: YUM is more expensive than 68.94% of the companies listed 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 an expensive valuation of the company.
The decent profitability rating of YUM 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 4.35.
YUM's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| 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
53.77% 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.