Yum China Holdings
Market Cap
US$15.9b
Last Updated
2020/03/31 04:00 UTC
Data Sources
Company Financials +
Executive Summary
Yum China Holdings, Inc. owns, operates, and franchises restaurants in China.
Rewards
Risk Analysis
No risks detected for YUMC from our risk checks.
Snowflake Analysis
Flawless balance sheet with acceptable track record.
Similar Companies
Share Price & News
How has Yum China Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: YUMC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.4%
YUMC
2.7%
US Hospitality
7.2%
US Market
1 Year Return
-6.8%
YUMC
-44.6%
US Hospitality
-10.4%
US Market
Return vs Industry: YUMC exceeded the US Hospitality industry which returned -43.4% over the past year.
Return vs Market: YUMC exceeded the US Market which returned -12.7% over the past year.
Shareholder returns
| YUMC | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.4% | 2.7% | 7.2% |
| 30 Day | -3.4% | -36.3% | -12.6% |
| 90 Day | -11.9% | -47.7% | -19.4% |
| 1 Year | -5.8%-6.8% | -43.1%-44.6% | -8.5%-10.4% |
| 3 Year | 55.6%51.3% | -31.2%-35.9% | 15.8%8.3% |
| 5 Year | n/a | -25.3%-33.6% | 35.8%21.0% |
Price Volatility Vs. Market
How volatile is Yum China Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Do Directors Own Yum China Holdings, Inc. (NYSE:YUMC) Shares?1 month ago | Simply Wall St
Be Sure To Check Out Yum China Holdings, Inc. (NYSE:YUMC) Before It Goes Ex-Dividend1 month ago | Simply Wall St
Introducing Yum China Holdings (NYSE:YUMC), A Stock That Climbed 65% In The Last Three YearsValuation
Is Yum China Holdings undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: YUMC ($42.56) is trading below our estimate of fair value ($96.57)
Significantly Below Fair Value: YUMC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: YUMC is poor value based on its PE Ratio (22.5x) compared to the Hospitality industry average (12.3x).
PE vs Market: YUMC is poor value based on its PE Ratio (22.5x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: YUMC is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: YUMC is overvalued based on its PB Ratio (5.2x) compared to the US Hospitality industry average (1.4x).
Next Steps
Future Growth
How is Yum China Holdings forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
11.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: YUMC's forecast earnings growth (11.7% per year) is above the savings rate (1.7%).
Earnings vs Market: YUMC's earnings (11.7% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: YUMC's earnings are forecast to grow, but not significantly.
Revenue vs Market: YUMC's revenue (6.6% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: YUMC's revenue (6.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: YUMC's Return on Equity is forecast to be high in 3 years time (21%)
Next Steps
Past Performance
How has Yum China Holdings performed over the past 5 years?
24.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: YUMC has high quality earnings.
Growing Profit Margin: YUMC's current net profit margins (8.1%) are lower than last year (8.4%).
Past Earnings Growth Analysis
Earnings Trend: YUMC has become profitable over the past 5 years, growing earnings by 24.5% per year.
Accelerating Growth: YUMC's earnings growth over the past year (0.7%) is below its 5-year average (24.5% per year).
Earnings vs Industry: YUMC earnings growth over the past year (0.7%) underperformed the Hospitality industry 1.6%.
Return on Equity
High ROE: YUMC's Return on Equity (23.4%) is considered high.
Next Steps
Financial Health
How is Yum China Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: YUMC's short term assets ($2.3B) exceed its short term liabilities ($1.7B).
Long Term Liabilities: YUMC's short term assets ($2.3B) exceed its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: YUMC is debt free.
Reducing Debt: YUMC has not had any debt for past 5 years.
Debt Coverage: YUMC has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: YUMC has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: YUMC has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if YUMC's debt is covered by short term assets.
Next Steps
Dividend
What is Yum China Holdings's current dividend yield, its reliability and sustainability?
1.13%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: YUMC's dividend (1.13%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: YUMC's dividend (1.13%) is low compared to the top 25% of dividend payers in the US market (5.49%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, YUMC has been paying a dividend for less than 10 years.
Growing Dividend: YUMC's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (25.4%), YUMC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: YUMC's dividends in 3 years are forecast to be well covered by earnings (23.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
Joey Wat (48yo)
2s
Tenure
US$10,486,376
Compensation
Ms. Joey Wat has been the Chief Executive Officer of Yum China Holding, Inc since March 1, 2018 and has served as its President and Chief Operating Officer since February 7, 2017 until February 2018 and se ...
CEO Compensation Analysis
Compensation vs Market: Joey's total compensation ($USD10.49M) is about average for companies of similar size in the US market ($USD11.74M).
Compensation vs Earnings: Joey's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2yrs | US$10.49m | 0.015% $2.4m | |
| Vice Chairman & Senior Advisor | 2yrs | US$1.28m | 0.082% $13.0m | |
| Chief Supply Chain Officer | 3.42yrs | US$3.25m | 0.0066% $1.0m | |
| Chief Financial Officer | 0.42yr | no data | no data | |
| Controller & Principal Accounting Officer | 2.17yrs | no data | no data | |
| Chief Technology Officer | no data | no data | 0.00070% $111.4k | |
| Vice President of Finance & Investor Relations | no data | no data | no data | |
| Chief Legal Officer | 0.67yr | no data | no data | |
| Chief Public Affairs Officer | 3yrs | no data | 0.0022% $351.7k | |
| Chief Marketing Officer | no data | no data | no data |
2.0yrs
Average Tenure
49.5yo
Average Age
Experienced Management: YUMC's management team is considered experienced (2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2yrs | US$10.49m | 0.015% $2.4m | |
| Vice Chairman & Senior Advisor | 2yrs | US$1.28m | 0.082% $13.0m | |
| Independent Director | 3.42yrs | US$181.25k | 0.014% $2.3m | |
| Independent Director | 3.42yrs | US$181.25k | 0.015% $2.3m | |
| Independent Director | 3.42yrs | US$195.00k | 0.0060% $956.4k | |
| Independent Director | 3.42yrs | US$202.92k | 0.014% $2.3m | |
| Independent Director | 3.42yrs | US$181.25k | 0.0069% $1.1m | |
| Independent Non-Executive Chairman | 3.25yrs | US$323.33k | 0.0071% $1.1m | |
| Independent Director | 3.42yrs | US$200.42k | 0.0059% $937.3k | |
| Independent Director | 3.42yrs | US$181.25k | 0.0059% $932.5k |
3.4yrs
Average Tenure
58yo
Average Age
Experienced Board: YUMC's board of directors are considered experienced (3.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Yum China Holdings, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Yum China Holdings, Inc.
- Ticker: YUMC
- Exchange: NYSE
- Founded: 2016
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: US$15.913b
- Shares outstanding: 376.10m
- Website: https://www.yumchina.com
Number of Employees
Location
- Yum China Holdings, Inc.
- Yum China Building
- 20 Tian Yao Qiao Road
- Shanghai
- 200030
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| YUMC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Oct 2016 |
| 0YU | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 2016 |
| YUMC * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Oct 2016 |
| 0M30 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Oct 2016 |
Biography
Yum China Holdings, Inc. owns, operates, and franchises restaurants in China. The company operates in two segments, KFC and Pizza Hut. It operates restaurants under the KFC, Pizza Hut, Taco Bell, East Dawning, Little Sheep, and COFFii & JOY brands, which specialize in chicken, pizza, hot pot cooking, Chinese food, Mexican-style food, and coffee categories. The company also provides online food delivery services. It operates franchise restaurants under the KFC, Pizza Hut, Taco Bell, Little Sheep, East Dawning, and COFFii & JOY names. As of December 31, 2019, the company operated approximately 9,200 restaurants in 1,300 cities. Yum China Holdings, Inc. has strategic agreements with China Petrochemical Corporation and with China National Petroleum Corporation to collaborate on the development of franchise restaurants at gas stations. Yum China Holdings, Inc. was incorporated in 2016 and is headquartered in Shanghai, China.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 04:00 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.