Restaurant Brands International Limited Partnership
Restaurant Brands International Limited Partnership Fundamental Analysis
Restaurant Brands International Limited Partnership (RSTRF) shows moderate financial fundamentals with a PE ratio of 28.72, profit margin of 9.96%, and ROE of 27.14%. The company generates $9.3B in annual revenue with strong year-over-year growth of 12.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RSTRF's fundamental strength across five key dimensions:
Efficiency Score
WeakRSTRF struggles to generate sufficient returns from assets.
Valuation Score
ModerateRSTRF shows balanced valuation metrics.
Growth Score
ModerateRSTRF shows steady but slowing expansion.
Financial Health Score
ModerateRSTRF shows balanced financial health with some risks.
Profitability Score
ModerateRSTRF maintains healthy but balanced margins.
Key Financial Metrics
Is RSTRF Expensive or Cheap?
P/E Ratio
RSTRF trades at 28.72 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RSTRF's PEG of -1.66 indicates potential undervaluation.
Price to Book
The market values Restaurant Brands International Limited Partnership at 7.33 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.62 times EBITDA. This signals the market has high growth expectations.
How Well Does RSTRF Make Money?
Net Profit Margin
For every $100 in sales, Restaurant Brands International Limited Partnership keeps $9.96 as profit after all expenses.
Operating Margin
Core operations generate 25.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.14 in profit for every $100 of shareholder equity.
ROA
Restaurant Brands International Limited Partnership generates $3.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Restaurant Brands International Limited Partnership produces operating cash flow of $1.72B, showing steady but balanced cash generation.
Free Cash Flow
Restaurant Brands International Limited Partnership generates strong free cash flow of $1.46B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.36 in free cash annually.
FCF Yield
RSTRF converts 5.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How RSTRF Stacks Against Its Sector Peers
| Metric | RSTRF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.72 | 24.26 | Worse (Expensive) |
| ROE | 27.14% | 1130.00% | Weak |
| Net Margin | 9.96% | 815.00% | Weak |
| Debt/Equity | 0.53 | 0.59 | Neutral |
| Current Ratio | 0.99 | 2.81 | Weak Liquidity |
| ROA | 3.84% | -7142.00% (disorted) | Weak |
RSTRF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Restaurant Brands International Limited Partnership's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
71.70%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
44.37%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
68.27%
Industry Style: Cyclical, Growth, Discretionary
High Growth