Yum Brands has 11.38
B in debt with debt to equity (D/E) ratio of 4.37 . This implies that the stock may be unable to create cash to meet all of its financial commitments. This firm has Current Ratio of 1.54 which is typical for the industry and considered as normal. The firm dividends can provide a clue to current valuation of the stock. The entity one year expected dividend income is about $1.11 per share. Earning per share calculations of the firm is based on official Zacks consensus of 8 analysts regarding Yum Brands future annual earnings. Given the historical accuracy of 86.46%, the future earnings per share of the company is estimated to be 2.7989 with lowest and highest values of 1.95 and 3.4 respectively. Please note that this consensus of annual earnings estimates for the entity is an estimate of EPS before non-recurring items and including employee stock options expenses.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Yum Brands income statement, its balance sheet, and the statement of cash flows. Potential Yum Brands investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Yum Brands investors may use each financial statement separately, they are all related. The changes in Yum Brands's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Yum Brands's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Yum Brands
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Yum Brands performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Yum Brands shares is the value that is considered the true value of the share. If
the intrinsic value of Yum is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Yum Brands. Please read more on our
fundamental analysis page.
How effective is Yum Brands in utilizing its assets?
Yum Brands reports assets on its Balance Sheet. It represents the amount of Yum resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Yum Brands aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Hotels, Restaurants & Leisure space. To get a better handle on how balance sheet or income statements item affect Yum volatility, please check the breakdown of all its
fundamentals.
Are Yum Brands Earnings Expected to grow?
The
future earnings power of Yum Brands involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Yum Brands factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Yum Brands
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Yum
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Yum Brands earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Yum Brands dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Yum one year expected dividend income is about USD1.8 per share.
At this time, Yum Brands'
Dividend Payout Ratio is very stable compared to the past year. As of the 28th of March 2024,
Dividend Paid And Capex Coverage Ratio is likely to grow to 4.28, though
Dividends Paid is likely to grow to (644.1
M).
Investing in dividend-paying stocks, such as Yum Brands is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Yum Brands must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Yum Brands. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Yum Brands Gross Profit
Yum Brands Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Yum Brands previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Yum Brands Gross Profit growth over the last 10 years. Please check Yum Brands'
gross profit and other
fundamental indicators for more details.
Detailed Outlook On Yum Brands
The company has beta of 0.87. Yum Brands returns are very sensitive to returns on the market. As market goes up or down, Yum Brands is expected to follow. The beta helps investors understand whether Yum Brands) moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words,if Yum Brands deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The current investor indifference towards the small price fluctuations of Yum Brands may raise some interest from investors as it closed today at a share price of
88.51 on
14,508,630 in trading volume. The company management did not add any value to Yum Brands investors in
April. However, most investors can still diversify their portfolios with Yum Brands to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 5.04. The very high volatility is mostly attributed to the latest market swings and not very good earning reports from some ot the Yum Brands partners. Yum Brands defends 3.62 earnings per share. Yum Brands is selling at 89.73. That is -1.23 percent decrease. Started trading at 89.73. Yum Brands Average Assets is increasing over the last 5 years. Also, Yum Brands Net Income Per Employee is increasing over the last 8 years.
| 2019 | 2020 (projected) |
Consolidated Income | 1.2 B | 1.04 B | Direct Expenses | 2.78 B | 2.86 B |
Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. Brands, Inc. was incorporated in 1997 and is headquartered in Louisville, Kentucky. Yum Brands operates under Restaurants classification in USA and is traded on BATS Exchange. It employs 34000 people.
To summarize, our actual buy or sell advice on the business is
Strong Sell. We believe Yum Brands is
over valued with
below average probability of financial unrest for the next two years.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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