Yum! Brands, Inc. (YUM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Chipotle Mexican Grill, Inc.

Texas Roadhouse, Inc.

Darden Restaurants, Inc.

Aramark

Yum China Holdings, Inc.

The Wendy's Co.

McDonald's Corp.

Yum! Brands, Inc.

Domino's Pizza, Inc.

Starbucks Corp.

Wingstop, Inc.

Why is Yum! Brands, Inc. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 7.56% and Operating profit at 7.70% over the last 5 years

Risky - Negative Book Value

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 7.84%, its profits have fallen by -11.5%

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 Yum! Brands, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Yum! Brands, Inc.

5.57%

0.32

24.66%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.56%

EBIT Growth (5y)

7.70%

EBIT to Interest (avg)

4.05

Debt to EBITDA (avg)

4.51

Net Debt to Equity (avg)

-1.35

Sales to Capital Employed (avg)

2.15

Tax Ratio

26.77%

Dividend Payout Ratio

51.40%

Pledged Shares

Institutional Holding

88.17%

ROCE (avg)

91.87%

ROE (avg)

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

-5.16

EV to EBIT

21.10

EV to EBITDA

19.59

EV to Capital Employed

18.55

EV to Sales

6.57

PEG Ratio

Dividend Yield

ROCE (Latest)

87.95%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,834 MM

DEBT-EQUITY RATIO (HY)

Lowest at -149.92 %

DIVIDEND PER SHARE(HY)

Highest at USD 10.23

-3What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 5.01% (YoY

Here's what is working for Yum! Brands, Inc.

Operating Cash Flow

Highest at USD 1,834 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 (USD MM)

Debt-Equity Ratio

Lowest at -149.92 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at USD 10.23 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Here's what is not working for Yum! Brands, Inc.

Raw Material Cost

Grown by 5.01% (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