YUM! BRANDS INC (YUM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YUM - US9884981013 - Common Stock
155.52 USD
+2.04 (+1.33%)
153.92 USD
-1.6 (-1.03%)
Overall YUM gets a fundamental rating of 6 out of 10. We evaluated YUM against 133 industry peers in the Hotels, Restaurants & Leisure industry. While YUM has a great profitability rating, 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
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.
Looking at the Return On Invested Capital, with a value of 36.61%, YUM belongs to the top 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 10.34%.
| 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.
YUM's Profit Margin has declined in the last couple of years.
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.
With a Gross Margin value of 46.40%, YUM perfoms like the industry average, outperforming 46.62% of the companies in the same industry.
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.
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.
YUM has a better debt/assets ratio than last year.
2.2 Solvency
YUM has an Altman-Z score of 2.83. 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 has a better Altman-Z score (2.83) than 72.93% 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's Debt to FCF ratio of 7.38 is fine compared to the rest of the industry. YUM outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.38 | ||
| Altman-Z | 2.83 |
ROIC/WACC4.65
WACC7.87%
2.3 Liquidity
A Current Ratio of 1.69 indicates that YUM should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.69, YUM is doing good in the industry, outperforming 76.69% 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.
The Quick ratio of YUM (1.69) is better than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.59% over the past year.
Measured over the past years, YUM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.07% on average per year.
The Revenue has grown by 11.60% in the past year. This is quite good.
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.
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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.23, the valuation of YUM can be described as expensive.
Based on the Price/Earnings ratio, YUM is valued a bit cheaper than the industry average as 60.15% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of YUM to the average of the S&P500 Index (27.19), we can say YUM is valued inline with the index average.
A Price/Forward Earnings ratio of 23.15 indicates a rather expensive valuation of YUM.
The rest of the industry has a similar Price/Forward Earnings ratio as YUM.
The average S&P500 Price/Forward Earnings ratio is at 23.92. YUM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.23 | ||
| Fwd PE | 23.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YUM is valued a bit more expensive than the industry average as 66.17% of the companies are valued more cheaply.
65.41% 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 | 27.59 | ||
| EV/EBITDA | 19.23 |
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)2.17
PEG (5Y)2.89
EPS Next 2Y10.72%
EPS Next 3Y10.98%
5. Dividend
5.1 Amount
YUM has a Yearly Dividend Yield of 1.89%.
YUM's Dividend Yield is a higher than the industry average which is at 6.32.
YUM's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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.
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
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 2Y10.72%
EPS Next 3Y10.98%
155.52
+2.04 (+1.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86%
Inst Owner Change0.01%
Ins Owners0.07%
Ins Owner Change-0.06%
Market Cap43.18B
Revenue(TTM)8.06B
Net Income(TTM)1.45B
Analysts73.14
Price Target167.59 (7.76%)
Short Float %2.98%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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%
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 | 26.23 | ||
| Fwd PE | 23.15 | ||
| P/S | 5.36 | ||
| P/FCF | 27.59 | ||
| P/OCF | 22.64 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.23 |
EPS(TTM)5.93
EY3.81%
EPS(NY)6.72
Fwd EY4.32%
FCF(TTM)5.64
FCFY3.62%
OCF(TTM)6.87
OCFY4.42%
SpS29.03
BVpS-27.03
TBVpS-31.5
PEG (NY)2.17
PEG (5Y)2.89
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 | 2.83 |
F-Score7
WACC7.87%
ROIC/WACC4.65
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 26.23 and the Price/Book (PB) ratio is -5.75.
Can you provide the financial health for YUM stock?
The financial health rating of YUM! BRANDS INC (YUM) is 6 / 10.