YUM! BRANDS INC (YUM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YUM - US9884981013 - Common Stock
150.49 USD
-0.79 (-0.52%)
149.5 USD
-0.99 (-0.66%)
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.
In the past year YUM had a positive cash flow from operations.
YUM had positive earnings in each of the past 5 years.
Each year in the past 5 years YUM had a positive operating cash flow.
1.2 Ratios
YUM has a Return On Assets of 20.12%. This is amongst the best in the industry. YUM outperforms 96.24% of its industry peers.
With an excellent Return On Invested Capital value of 36.61%, YUM belongs to the best of the industry, outperforming 97.74% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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 has a Profit Margin of 17.95%. This is amongst the best in the industry. YUM outperforms 90.23% of its industry peers.
YUM's Profit Margin has declined in the last couple of years.
YUM has a better Operating Margin (32.23%) than 97.74% of its industry peers.
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 46.40%. This is comparable to the rest of the industry: YUM outperforms 46.62% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so YUM is creating value.
The number of shares outstanding for YUM has been reduced compared to 1 year ago.
The number of shares outstanding for YUM has been reduced compared to 5 years ago.
Compared to 1 year ago, YUM has an improved debt to assets ratio.
2.2 Solvency
YUM has an Altman-Z score of 2.77. 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 2.77 is fine compared to the rest of the industry. YUM outperforms 73.68% 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 | 2.77 |
ROIC/WACC4.54
WACC8.07%
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 75.19% 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 has a better Quick ratio (1.69) than 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.
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 quite strong growth in Revenue. The Revenue has grown by 11.60% 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)11.6%
Revenue growth 3Y4.66%
Revenue growth 5Y6.17%
Sales Q2Q%8.38%
3.2 Future
The Earnings Per Share is expected to grow by 11.24% on average over the next years. This is quite good.
YUM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.40% yearly.
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
YUM is valuated quite expensively with a Price/Earnings ratio of 25.38.
YUM's Price/Earnings ratio is a bit cheaper when compared to the industry. YUM is cheaper than 60.15% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. YUM is around the same levels.
Based on the Price/Forward Earnings ratio of 22.40, the valuation of YUM can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as YUM.
When comparing the Price/Forward Earnings ratio of YUM to the average of the S&P500 Index (23.23), we can say YUM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 22.4 |
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.
YUM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. YUM is cheaper than 65.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.7 | ||
| EV/EBITDA | 18.73 |
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)2.1
PEG (5Y)2.8
EPS Next 2Y10.72%
EPS Next 3Y10.98%
5. Dividend
5.1 Amount
YUM has a Yearly Dividend Yield of 1.88%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.94, YUM pays a bit more dividend than its industry peers.
YUM's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
5.2 History
The dividend of YUM is nicely growing with an annual growth rate of 9.75%!
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
53.84% 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%
150.49
-0.79 (-0.52%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86%
Inst Owner Change0%
Ins Owners0.07%
Ins Owner Change-0.06%
Market Cap41.78B
Revenue(TTM)8.06B
Net Income(TTM)1.45B
Analysts72.57
Price Target167.59 (11.36%)
Short Float %2.98%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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)0.02%
EPS NQ rev (3m)-1.57%
EPS NY rev (1m)0.03%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.64%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 22.4 | ||
| P/S | 5.18 | ||
| P/FCF | 26.7 | ||
| P/OCF | 21.91 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.73 |
EPS(TTM)5.93
EY3.94%
EPS(NY)6.72
Fwd EY4.46%
FCF(TTM)5.64
FCFY3.75%
OCF(TTM)6.87
OCFY4.56%
SpS29.03
BVpS-27.03
TBVpS-31.5
PEG (NY)2.1
PEG (5Y)2.8
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 | 2.77 |
F-Score7
WACC8.07%
ROIC/WACC4.54
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 25.38 and the Price/Book (PB) ratio is -5.57.
Can you provide the financial health for YUM stock?
The financial health rating of YUM! BRANDS INC (YUM) is 6 / 10.