Restaurant Brands International, Inc. (QSR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

MTY Food Group, Inc.

Pizza Pizza Royalty Corp.

Aegis Brands, Inc.

Restaurant Brands International LP

Restaurant Brands International, Inc.

Spot Coffee (Canada) Ltd.

Pangea Natural Food, Inc.

Just Kitchen Holdings Corp.

Why is Restaurant Brands International, Inc. ?

High Management Efficiency with a high ROCE of 13.75%

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 13.75%

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CAD 2,397.29 MM
RAW MATERIAL COST(Y) Fallen by -0.6% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 391.96 %

With ROE of 37.00%, it has a very expensive valuation with a 6.39 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 7.86%, its profits have risen by 2.7%

High Institutional Holdings at 92.47%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

The stock has generated a return of 7.86% in the last 1 year, much lower than market (S&P/TSX 60) returns of 27.55%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Restaurant Brands International, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Restaurant Brands International, Inc.

11.73%

0.41

23.89%

S&P/TSX 60

28.68%

2.17

12.71%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.96%

EBIT Growth (5y)

11.06%

EBIT to Interest (avg)

3.44

Debt to EBITDA (avg)

5.41

Net Debt to Equity (avg)

4.16

Sales to Capital Employed (avg)

0.50

Tax Ratio

22.08%

Dividend Payout Ratio

105.53%

Pledged Shares

Institutional Holding

92.47%

ROCE (avg)

13.75%

ROE (avg)

51.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.39

EV to EBIT

14.19

EV to EBITDA

12.69

EV to Capital Employed

2.24

EV to Sales

3.84

PEG Ratio

Dividend Yield

ROCE (Latest)

15.80%

ROE (Latest)

37.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 2,397.29 MM

RAW MATERIAL COST(Y)

Fallen by -0.6% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 391.96 %

NET PROFIT(Q)

Highest at CAD 451 MM

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Restaurant Brands International, Inc.

Operating Cash Flow

Highest at CAD 2,397.29 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Profit

Highest at CAD 451 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Net Profit

At CAD 451 MM has Grown at 100.7%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Debt-Equity Ratio

Lowest at 391.96 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -0.6% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 106.99 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)