YUM! BRANDS INC (YUM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YUM - US9884981013 - Common Stock
153.48 USD
+2.99 (+1.99%)
153.75 USD
+0.27 (+0.18%)
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 belongs to the best of the industry regarding profitability, 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
In the past year YUM was profitable.
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
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.
The Return On Invested Capital of YUM (36.61%) is better than 97.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for YUM is significantly above the industry average of 10.39%.
| 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.
YUM's Profit Margin has declined in the last couple of years.
The Operating Margin of YUM (32.23%) is better 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's Gross Margin of 46.40% is in line compared to the rest of the industry. YUM outperforms 46.62% of its industry peers.
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.
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
An Altman-Z score of 2.80 indicates that YUM is not a great score, but indicates only limited risk for bankruptcy at the moment.
YUM has a better Altman-Z score (2.80) than 72.18% 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.
The Debt to FCF ratio of YUM (7.38) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.38 | ||
| Altman-Z | 2.8 |
ROIC/WACC4.53
WACC8.09%
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.
The Current ratio of YUM (1.69) is better than 75.19% of its industry peers.
A Quick Ratio of 1.69 indicates that YUM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.69, YUM is in the better half of the industry, outperforming 78.20% of the companies in the same industry.
| 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
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
Based on the Price/Earnings ratio of 25.88, the valuation of YUM can be described as expensive.
60.15% of the companies in the same industry are more expensive than YUM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of YUM to the average of the S&P500 Index (27.00), we can say YUM is valued inline with the index average.
The Price/Forward Earnings ratio is 22.84, which indicates a rather expensive current valuation of YUM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of YUM is on the same level as its industry peers.
YUM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.88 | ||
| Fwd PE | 22.84 |
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.
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 | 27.23 | ||
| EV/EBITDA | 19.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates YUM does not grow enough to justify the current Price/Earnings ratio.
YUM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.14
PEG (5Y)2.85
EPS Next 2Y10.72%
EPS Next 3Y10.98%
5. Dividend
5.1 Amount
YUM has a Yearly Dividend Yield of 1.88%.
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
On average, the dividend of YUM grows each year by 9.75%, which is quite nice.
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.
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%
153.48
+2.99 (+1.99%)
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 Cap42.61B
Revenue(TTM)8.06B
Net Income(TTM)1.45B
Analysts72.57
Price Target167.59 (9.19%)
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 | 25.88 | ||
| Fwd PE | 22.84 | ||
| P/S | 5.29 | ||
| P/FCF | 27.23 | ||
| P/OCF | 22.35 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.03 |
EPS(TTM)5.93
EY3.86%
EPS(NY)6.72
Fwd EY4.38%
FCF(TTM)5.64
FCFY3.67%
OCF(TTM)6.87
OCFY4.48%
SpS29.03
BVpS-27.03
TBVpS-31.5
PEG (NY)2.14
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
WACC8.09%
ROIC/WACC4.53
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 25.88 and the Price/Book (PB) ratio is -5.68.
Can you provide the financial health for YUM stock?
The financial health rating of YUM! BRANDS INC (YUM) is 6 / 10.