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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Texas Roadhouse, Inc.

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Yum China Holdings, Inc.

Yum! Brands, Inc.

McDonald's Corp.

The Wendy's Co.

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 6.91%, 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.

-0.57%

0.30

24.94%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.76%

EBIT Growth (5y)

8.65%

EBIT to Interest (avg)

4.05

Debt to EBITDA (avg)

4.51

Net Debt to Equity (avg)

-1.35

Sales to Capital Employed (avg)

2.07

Tax Ratio

26.77%

Dividend Payout Ratio

51.17%

Pledged Shares

Institutional Holding

87.23%

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

-6.11

EV to EBIT

22.01

EV to EBITDA

20.87

EV to Capital Employed

14.43

EV to Sales

6.81

PEG Ratio

5.96

Dividend Yield

ROCE (Latest)

65.56%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 2,010 MM

DEBT-EQUITY RATIO (HY)

Lowest at -167.75 %

DIVIDEND PER SHARE(HY)

Highest at USD 9.2

INTEREST COVERAGE RATIO(Q)

Highest at 592.65

RAW MATERIAL COST(Y)

Fallen by -0.23% (YoY

NET SALES(Q)

Highest at USD 2,514 MM

OPERATING PROFIT(Q)

Highest at USD 806 MM

PRE-TAX PROFIT(Q)

Highest at USD 621 MM

NET PROFIT(Q)

Highest at USD 547.34 MM

EPS(Q)

Highest at USD 1.91

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 37.16%

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.2 times

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

Operating Cash Flow

Highest at USD 2,010 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)

Interest Coverage Ratio

Highest at 592.65

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at -167.75 % 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 9.2 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 2,514 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 806 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 621 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 547.34 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 1.91

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -0.23% (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 USD 67 MM

in the last five periods

MOJO Watch

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

Depreciation (USD MM)

Depreciation

At USD 67 MM has Grown at 34%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

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

Debtors Turnover Ratio

Lowest at 9.2 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 37.16%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)