Yum Brands Inc

Find Ratings Reports
YUM : NYSE : Services
$75.41 | %
Today's Range: 75.0 - 75.73
Avg. Daily Volume: 1975500.0
08/18/17 - 4:06 PM ET

Financial Analysis


YUM BRANDS INC's gross profit margin for the second quarter of its fiscal year 2017 has increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. YUM BRANDS INC has weak liquidity. Currently, the Quick Ratio is 0.93 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 1,468.63% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1448.01509.0
EBITDA ($mil)515.0495.0
EBIT ($mil)450.0421.0
Net Income ($mil)206.0336.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1023.0846.0
Total Assets ($mil)5596.08184.0
Total Debt ($mil)9849.05363.0
Equity ($mil)-6102.0-389.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin52.8349.3
EBITDA Margin35.5632.8
Operating Margin31.0827.9
Sales Turnover1.121.26
Return on Assets25.5317.05
Return on Equity0.00.0
Debt Q2 FY17 Q2 FY16
Current Ratio1.210.82
Debt/Capital2.631.08
Interest Expense102.051.0
Interest Coverage4.418.25


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)345.0399.0
Div / share0.30.46
EPS0.580.64
Book value / share-17.69-0.97
Institutional Own % n/a n/a
Avg Daily Volume2020806.02777397.0

Valuation


HOLD. This stock's P/E ratio indicates a significant discount compared to an average of 41.67 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 24.31. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, YUM BRANDS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
YUM 27.60 Peers 41.67   YUM 15.85 Peers 19.65

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

YUM is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

YUM is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
YUM 23.51 Peers 24.25   YUM 2.03 Peers 2.81

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

YUM is trading at a premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

YUM trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
YUM NM Peers 10.01   YUM -1.09 Peers 53.47

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

YUM's P/B is negative making this valuation measure meaningless.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, YUM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
YUM 4.15 Peers 3.23   YUM -39.32 Peers 7.46

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

YUM is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

YUM significantly trails its peers on the basis of sales growth

 

 

Latest Stock Upgrades/Downgrades