Yum Brands IncFind Ratings Reports
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.
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|Income Statement||Q2 FY17||Q2 FY16|
|Net Sales ($mil)||1448.0||1509.0|
|Net Income ($mil)||206.0||336.0|
|Balance Sheet||Q2 FY17||Q2 FY16|
|Cash & Equiv. ($mil)||1023.0||846.0|
|Total Assets ($mil)||5596.0||8184.0|
|Total Debt ($mil)||9849.0||5363.0|
|Profitability||Q2 FY17||Q2 FY16|
|Gross Profit Margin||52.83||49.3|
|Return on Assets||25.53||17.05|
|Return on Equity||0.0||0.0|
|Debt||Q2 FY17||Q2 FY16|
|Share Data||Q2 FY17||Q2 FY16|
|Shares outstanding (mil)||345.0||399.0|
|Div / share||0.3||0.46|
|Book value / share||-17.69||-0.97|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2020806.0||2777397.0|
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.
|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.
|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.
|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.
|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