Why is Restaurant Brand falling/rising?
As of 30-Jul, Restaurant Brands Asia Ltd's stock price is 82.78, down 0.36%, and has underperformed its sector. The stock shows weak fundamentals and significant declines over the past year, indicating challenges ahead.
As of 30-Jul, Restaurant Brands Asia Ltd is experiencing a decline in its stock price, currently at 82.78, reflecting a change of -0.3, or -0.36%. The stock has underperformed its sector by 1.18% today, and while it is higher than the 20-day, 50-day, 100-day, and 200-day moving averages, it is lower than the 5-day moving average. The stock has shown a negative return of -1.45% over the past week and a more significant decline of -25.01% over the past year, indicating consistent underperformance against the benchmark. Additionally, the company has high institutional holdings at 60.5%, which suggests that these investors may have a better understanding of the company's fundamentals. However, the stock's weak long-term fundamental strength, characterized by an average Return on Capital Employed (ROCE) of 0% and a high Debt to EBITDA ratio of 5.02 times, raises concerns about its growth potential and ability to service debt.In the broader market context, the stock's recent performance contrasts with the benchmark, as it has generated a return of -1.45% over the past week compared to the Sensex's decline of -1.50%. Despite a slight positive return of 0.25% over the past month, the stock's year-to-date performance remains negative at -2.45%, while the benchmark has gained 4.28%. The company's flat results in March and a low Debtors Turnover Ratio of 75.80 times further contribute to the perception of risk surrounding the stock. Overall, the combination of weak fundamentals, consistent underperformance against the benchmark, and declining investor participation suggests that the stock is facing significant challenges, leading to its current downward movement.
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