Yum Brands IncFind Ratings Reports
YUM BRANDS INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged 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 0.60 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 3,825.64% 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||Q1 FY17||Q1 FY16|
|Net Sales ($mil)||1417.0||1443.0|
|Net Income ($mil)||280.0||364.0|
|Balance Sheet||Q1 FY17||Q1 FY16|
|Cash & Equiv. ($mil)||579.0||934.0|
|Total Assets ($mil)||5151.0||8221.0|
|Total Debt ($mil)||9108.0||4831.0|
|Profitability||Q1 FY17||Q1 FY16|
|Gross Profit Margin||51.45||49.27|
|Return on Assets||30.26||15.75|
|Return on Equity||0.0||741.66|
|Debt||Q1 FY17||Q1 FY16|
|Share Data||Q1 FY17||Q1 FY16|
|Shares outstanding (mil)||350.0||407.0|
|Div / share||0.3||0.46|
|Book value / share||-16.61||0.38|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2540743.0||2447208.0|
HOLD. The current P/E ratio indicates a significant discount compared to an average of 38.52 for the Hotels, Restaurants & Leisure industry and a value on par with the S&P 500 average of 25.75. 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 26.72||Peers 38.52||YUM 15.12||Peers 19.75|
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 23.63||Peers 25.90||YUM 2.14||Peers 1.73|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
YUM is trading at a valuation on par with its peers.
Premium. 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 premium to its peers.
|YUM NM||Peers 10.91||YUM 5.28||Peers 109.06|
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 4.12||Peers 3.49||YUM -46.93||Peers 3.97|
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 premium to its industry on this measurement.
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