YUM! Brands Inc. (NYSE:YUM)

Price to Earnings (P/E) Ratio

The P/E ratio exhibited notable fluctuations over the observed periods, beginning at 22.15 and experiencing a general upward trend until a peak of 41.76 was reached. Following this peak, the ratio declined steadily, ending near 19.91. This pattern suggests that market valuation relative to earnings increased markedly before a retracement toward more moderate levels occurred, potentially reflecting changing investor expectations or earnings volatility.

Price to Operating Profit (P/OP) Ratio

Similar to the P/E ratio, the P/OP ratio demonstrated an overall increasing trend early on, starting at 16.27 and reaching a maximum of 27.61. This was followed by a downward correction, settling around 15.06 by the final quarter observed. The changes indicate initial optimism or rising valuations relative to operating profit, which later subsided, possibly aligning with operational performance or market adjustments.

Price to Sales (P/S) Ratio

The P/S ratio varied within a narrower range compared to earnings and operating profit multiples. Starting around 2.59, it dipped slightly during some quarters but showed moderate increases later, peaking near 2.92 before a slight contraction. The relative stability suggests that sales figures were more consistent or that market pricing relative to revenue was steadier across the periods.

Price to Book Value (P/BV) Ratio

The P/BV ratio displayed considerable volatility, ranging from approximately 15.64 initially, tapering slightly through various periods, and then escalating sharply to an extraordinary peak of 214.27 before data became unavailable. This extreme spike indicates an unusual market valuation relative to the book value in one of the latest periods, which could reflect significant changes in equity valuation, intangible assets, or market speculation. The missing data following this spike may suggest irregularities or reporting issues in subsequent periods.

Share Price Trend

The share price exhibits fluctuations over the observed periods with a range from a low of 62.76 US$ to a high of 88.62 US$. An upward movement is evident from early 2013 to mid-2015, reaching a peak around June 2015 at 88.62 US$. After a decline towards the end of 2015, the price recovers again in 2016, reaching similar high levels close to 88.25 US$ by September 2016.

Earnings per Share (EPS) Trend

EPS displays variability across quarters with notable periods of decline and growth. The EPS starts relatively high around 3.29 US$ in March 2012, showing a decline to approximately 2.12 US$ by mid-2015. Subsequently, a clear recovery trend is noticeable with EPS increasing steadily, reaching 4.43 US$ by September 2016, the highest value in the data set, indicating improving profitability.

Price-to-Earnings (P/E) Ratio Trend

The P/E ratio demonstrates substantial volatility, ranging from around 18.22 to a significant peak of 41.76 in mid-2015. This ratio generally increased from 2012 through mid-2015, indicating rising market valuations relative to earnings. However, from late 2015 onwards, the P/E declines steadily, dropping to 19.91 by September 2016, suggesting a contraction in market valuation multiples or an adjustment to the improving earnings.

Interrelationship and Insights

The share price and P/E ratio trends are broadly aligned, with both peaking around mid-2015 before declining. The initial increase in P/E suggests the market valued the company more optimistically despite some EPS decline during that period. The subsequent decrease in P/E alongside rising EPS in 2016 implies that earnings growth began to drive share price recovery, resulting in a normalization of valuation multiples. The sharp EPS growth in 2016 and stabilization of share price near previous highs highlight improved operational performance and growing investor confidence.

The analysis of the quarterly financial data reveals several noteworthy trends in the company’s share price, operating profit per share, and the price-to-operating profit (P/OP) ratio over the observed periods from March 2012 through September 2016.

Share Price

The share price exhibited notable fluctuations, initially declining from $72.75 in March 2012 to a low of $62.76 in June 2012. This was followed by recovery and oscillations around the mid-to-high $60 range through 2013. A consistent upward trajectory is observed from early 2014, reaching a peak of $88.62 by June 2015. However, a decline occurred after this peak, with prices falling back toward the high $60s by late 2015. The price rebounded again in 2016, climbing steadily to $88.25 by September 2016, marking one of the highest points within the period examined.

Operating Profit Per Share

Operating profit per share showed an increasing trend in the early period, rising from $4.47 in March 2012 to a peak around $5.09 at the end of 2012. This was followed by a downward phase through 2013 and into early 2015, reaching a low of approximately $3.21 in September 2015. From late 2015 onwards, there was a clear recovery, with operating profit per share rising sharply and consistently to $5.86 by September 2016. The data indicate cyclical profitability with periods of decline and subsequent recovery.

Price-to-Operating Profit (P/OP) Ratio

The P/OP ratio started at a relatively high 16.27 in early 2012, then generally decreased to a low around 12.68 in December 2012. The ratio later increased substantially, peaking in the range of 25.1 to 27.61 between late 2014 and mid-2015, indicating a period where share price valuations were higher relative to operating profit. After this peak, the P/OP ratio declined again toward 15.06 by September 2016. This pattern suggests investor optimism and elevated valuations in 2014-2015, followed by a moderation aligning with improved operating profit performance in 2016.

Overall, the financial data demonstrate cyclical dynamics in profitability and valuation. The share price and operating profit per share exhibit correlated movements over the long term but with temporary divergences, as reflected in the volatility of the P/OP ratio. The latter part of the period under review shows signs of restored confidence with increasing operating profitability and a stabilizing valuation ratio, potentially signaling stronger financial performance and improved market sentiment.

The analysis of the financial trends reveals distinct patterns in the share price, sales per share, and price-to-sales (P/S) ratio over the observed quarters.

Share Price

The share price displays considerable fluctuations throughout the periods, initially declining from $72.75 to $62.76 before experiencing cyclical rises and falls. Notably, after a mid-cycle dip down to approximately $65.8–69.27, the price generally trends upward in the latter quarters, reaching the highest observed values near $88.25. This suggests intermittent volatility alongside a positive longer-term recovery and growth trend.

Sales per Share

Sales per share demonstrate a relatively steady upward trajectory across the observed periods. Beginning close to $28.10, sales per share incrementally rise with minor fluctuations, peaking around $35.13 in the last recorded quarter. The gradual increase indicates consistent growth in sales efficiency or revenue generation capacity on a per-share basis, reflecting stable operational improvement or increasing market demand.

Price-to-Sales (P/S) Ratio

The P/S ratio experiences variation aligned with the movements in share price and sales per share, showing a decrease from 2.59 to as low as approximately 2.13 in some quarters. Subsequently, the ratio climbs to near 2.92 before declining towards the end of the period to a range around 2.51–2.63. This variability suggests changing market valuation relative to sales, with intervals where investors valued shares lower relative to sales, followed by periods of higher valuation. The moderate volatility in P/S ratio indicates differing investor sentiment and assessment of growth prospects throughout the timeline.

In summary, the data reveals a firm experiencing steady growth in sales efficiency per share coupled with fluctuating but generally improving share prices, while market valuation relative to sales shows moderate variability. The trends suggest confidence in long-term growth amid short-term market adjustments.

The analysis of the quarterly financial data reveals several notable trends in the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio over the observed periods.

Share Price

The share price exhibited fluctuating movements without a clear linear trend from early 2012 through mid-2016. Initial values showed moderate volatility, with share prices ranging between approximately $62 and $73 throughout 2012 and 2013. There was a general upward trend toward the end of 2013 and through 2014, reaching its peak at $88.62 in mid-2015. Subsequently, a sharp decline occurred by late 2015, dropping to around $69, followed by a recovery phase in 2016 that saw prices rise again to about $88 by September 2016.

Book Value Per Share (BVPS)

BVPS showed a generally stable trend, oscillating between $4.65 and $5.73 from 2012 through 2014, indicating relative consistency in the company's equity per share in this period. However, starting from late 2014, a drastic decline in BVPS became evident, plunging sharply through 2015 and turning negative by 2016. This unusual reversal, culminating in a negative book value of approximately -$5.17 by September 2016, points to significant erosion of the company's net asset value or accounting adjustments affecting shareholders’ equity adversely.

Price-to-Book Value (P/BV) Ratio

The P/BV ratio remained moderately high but fairly steady between 11.84 and 24.36 from 2012 through mid-2015. The sudden dive in BVPS led to disproportionately elevated P/BV multiples starting in late 2015, with the ratio reaching an extraordinarily high peak of approximately 214.27 by mid-2016, reflecting the extremely depressed or negative book value denominator. This ratio then became undefined in later periods due to missing BVPS data, indicating potential challenges in valuation metrics based on book values during this timeframe.

Overall, the data illustrates that while the share price generally recovered and stabilized after periods of volatility, the underlying book value per share experienced severe deterioration. This divergence between market price and book value suggests either strong market confidence or external factors sustaining the share price despite weakening equity fundamentals. The sharp negative turn in BVPS might warrant further investigation into the reasons behind such equity depletion and implications for the company's financial health and valuation going forward.