Fact based stock research
Yum! (NYSE:YUM)

US9884981013

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Yum! stock research in summary

yum.comwpsportalyumbrandsYumbrands

ANALYSIS: With an Obermatt Combined Rank of 89 (better than 89% compared with investment alternatives), Yum! (Restaurants, USA) shares have much better financial characteristics than comparable stocks. Shares of Yum! are a good value (attractively priced) with a consolidated Value Rank of 77 (better than 77% of alternatives), show above-average growth (Growth Rank of 61), and are safely financed (Safety Rank of 54), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 89, is a strong buy recommendation based on Yum!'s financial characteristics. As the company Yum!'s key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 77), above-average growth (Obermatt Growth Rank of 61), and indicate that the company is safely financed (Obermatt Safety Rank of 54), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Yum!. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	77
Growth Rank	61
Safety Rank	54
Combined Rank	89

Country	USA
Industry	Restaurants
Index	Dividends USA, Employee Focus US, Diversity USA, S&P US Luxury, S&P 500
Size class	X-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Yum!

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	79	85	72	77
GROWTH
GROWTH	83	23	61	61
SAFETY
SAFETY	77	35	23	54
SENTIMENT
SENTIMENT	n/a	66	92	^new
360° VIEW
360° VIEW	n/a	48	82	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Yum! is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	79	85	72	77
GROWTH
GROWTH	83	23	61	61
SAFETY
SAFETY	77	35	23	54
COMBINED
COMBINED	95	46	53	89

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Yum! the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 77 (better than 77% compared with alternatives) for 2024, Yum! shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Yum!. Expected dividend yields are higher than for 82% of comparable companies (a Dividend Yield rank of 82), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 89, which means that the stock price is lower compared with invested capital than for 89% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 10 which means that the stock price compared with what market professionals expect for future profits is higher than for 90% of comparable companies, indicating a low value concerning Yum!'s sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Yum! with a rank of 38. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 62% of comparable companies, indicating a low value concerning Yum!'s profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 77, is a buy recommendation based on Yum!'s stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Yum! may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	3	7	5	10
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	62	40	40	38
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	90	90	87	89
DIVIDEND YIELD
DIVIDEND YIELD	85	85	84	82
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	79	85	72	77

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Yum!; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 61 (better than 61% compared with alternatives), Yum! shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Yum!. Sales Growth has a value of 54, which means that, currently, professionals expect the company to grow more than 54% of its competitors. The same is valid for Profit Growth with a value of 54 and for Capital Growth with 57. In addition, Stock Returns had an above-average rank value of 55, which means they have been higher than 55% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 61, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Yum! exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	79	25	68	54
PROFIT GROWTH
PROFIT GROWTH	44	19	52	54
CAPITAL GROWTH
CAPITAL GROWTH	n/a	69	50	57
STOCK RETURNS
STOCK RETURNS	71	61	37	55
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	83	23	61	61

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Yum!.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 54 (better than 54% compared with alternatives), the company Yum! has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Yum! is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Yum!. Refinancing is at 79, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 79% of its competitors. Liquidity is also good at 71, meaning the company generates more profit to service its debt than 71% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 3, which means the company has an above-average debt-to-equity ratio. It has more debt than 97% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 54 (better than 54% compared with alternatives), Yum! has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Yum! could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Yum! and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	60	2	2	3
REFINANCING
REFINANCING	71	39	63	79
LIQUIDITY
LIQUIDITY	69	84	59	71
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	77	35	23	54

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Yum! and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	11	23	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	60	66	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	47	80	^new
MARKET PULSE
MARKET PULSE	n/a	98	97	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	66	92	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Yum!.
Upgrade to a Premium Account to access the latest ranks.