Restaurant Brands International LP () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Restaurant Brands International, Inc.

Restaurant Brands International LP

Pizza Pizza Royalty Corp.

MTY Food Group, Inc.

Aegis Brands, Inc.

Spot Coffee (Canada) Ltd.

Just Kitchen Holdings Corp.

Pangea Natural Food, Inc.

Why is Restaurant Brands International LP ?

High Management Efficiency with a high ROCE of 12.28%

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 12.28%

Flat results in Jun 25

ROCE(HY) Lowest at 24.42%
RAW MATERIAL COST(Y) Grown by 9.32% (YoY)
PRE-TAX PROFIT(Q) Fallen at -29.96%

With ROE of 24.50%, it has a expensive valuation with a 1.57 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.81%, its profits have fallen by -33.4%

Below par performance in long term as well as near term

Along with generating -4.81% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Restaurant Brands International LP should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Restaurant Brands International LP for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Restaurant Brands International LP

0.07%

-0.18

21.48%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.72%

EBIT Growth (5y)

7.69%

EBIT to Interest (avg)

3.35

Debt to EBITDA (avg)

5.42

Net Debt to Equity (avg)

2.69

Sales to Capital Employed (avg)

0.41

Tax Ratio

22.08%

Dividend Payout Ratio

72.83%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

12.28%

ROE (avg)

30.33%

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

1.74

EV to EBIT

8.86

EV to EBITDA

7.86

EV to Capital Employed

1.21

EV to Sales

2.33

PEG Ratio

Dividend Yield

ROCE (Latest)

13.65%

ROE (Latest)

24.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 2,203.21 MM

DIVIDEND PER SHARE(HY)

Highest at CAD 12.27

INTEREST COVERAGE RATIO(Q)

Highest at 396.26

DIVIDEND PAYOUT RATIO(Y)

Highest at 105.95%

INVENTORY TURNOVER RATIO(HY)

Highest at 29.28%

DEBTORS TURNOVER RATIO(HY)

Highest at 12.27%

NET SALES(Q)

Highest at CAD 3,335.21 MM

OPERATING PROFIT(Q)

Highest at CAD 1,025.47 MM

-9What is not working for the Company

ROCE(HY)

Lowest at 24.42%

RAW MATERIAL COST(Y)

Grown by 9.32% (YoY

PRE-TAX PROFIT(Q)

Fallen at -29.96%

NET PROFIT(Q)

Fallen at -36.1%

Here's what is working for Restaurant Brands International LP

Operating Cash Flow

Highest at CAD 2,203.21 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)

Interest Coverage Ratio

Highest at 396.26

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at CAD 12.27 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Net Sales

Highest at CAD 3,335.21 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 1,025.47 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Inventory Turnover Ratio

Highest at 29.28%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 12.27%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 105.95%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Restaurant Brands International LP

Pre-Tax Profit

Fallen at -29.96%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Fallen at -36.1%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Raw Material Cost

Grown by 9.32% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales