Yum! Brands, Inc. (YUM) is a Restaurants company in the Consumer Cyclical sector, currently trading at $161.57. It has a SharesGrow Score of 61/100, indicating a above average investment profile with 3 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of YUM = $227.28 (+40.7% from the current price, the stock appears undervalued). Analyst consensus target is YUM = $173 (+7.2% upside).
Valuation: YUM trades at a trailing Price-to-Earnings (P/E) of 28.6 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 2.4.
Financials: revenue is $8.2B, +6.3%/yr average growth. Net income is $1.6B, growing at +6.2%/yr. Net profit margin is 19% (healthy). Gross margin is 46.2% (-2.1 pp trend).
Balance sheet: total debt is $11.9B with negative equity of -$7.3B — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 1.35 (adequate). Debt-to-assets is 145.3%. Total assets: $8.2B.
Analyst outlook: 18 / 51 analysts rate YUM as buy (35%) — mixed sentiment.
SharesGrow 7-Criteria breakdown: Value 41/100 (Partial), Growth 65/100 (Pass), Past 100/100 (Pass), Health 50/100 (Partial), Moat 64/100 (Partial), Future 40/100 (Partial), Income 70/100 (Pass).
