Yum China Holdings
Market Cap
US$16.4b
Last Updated
2019/10/23 00:41 UTC
Data Sources
Company Financials +
Executive Summary
Yum China Holdings, Inc. owns, operates, and franchises restaurants in China.
Snowflake
Fundamentals
Flawless balance sheet with solid 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
Market Performance
7 Day Return
-1.0%
YUMC
0.5%
US Hospitality
0.07%
US Market
1 Year Return
38.5%
YUMC
8.5%
US Hospitality
8.9%
US Market
Return vs Industry: YUMC exceeded the US Hospitality industry which returned 8.5% over the past year.
Return vs Market: YUMC exceeded the US Market which returned 8.9% over the past year.
Shareholder returns
| YUMC | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.0% | 0.5% | 0.07% |
| 30 Day | -4.8% | -2.6% | -0.3% |
| 90 Day | -3.2% | -5.9% | -1.6% |
| 1 Year | 40.2%38.5% | 11.2%8.5% | 11.3%8.9% |
| 3 Year | 79.3%75.3% | 43.6%34.1% | 46.3%36.8% |
| 5 Year | n/a | 39.5%24.2% | 62.1%44.3% |
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
3 weeks ago | Simply Wall St
Yum China Holdings (NYSE:YUMC) Shareholders Have Enjoyed A 30% Share Price Gain1 month ago | Simply Wall St
When Should You Buy Yum China Holdings, Inc. (NYSE:YUMC)?6 months ago | Simply Wall St
Should You Be Holding Yum China Holdings, Inc. (NYSE:YUMC)?Valuation
Is Yum China Holdings undervalued compared to its fair value and its price relative to the market?
1.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: YUMC ($43.39) is trading below our estimate of fair value ($43.85)
Significantly Below Fair Value: YUMC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: YUMC is poor value based on its PE Ratio (24.4x) compared to the Hospitality industry average (22x).
PE vs Market: YUMC is poor value based on its PE Ratio (24.4x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: YUMC is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: YUMC is overvalued based on its PB Ratio (5.5x) compared to the US Hospitality industry average (2.3x).
Next Steps
Future Growth
How is Yum China Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
10.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: YUMC's forecast earnings growth (10.3% per year) is above the savings rate (2.7%).
Earnings vs Market: YUMC's earnings (10.3% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: YUMC's earnings are forecast to grow, but not significantly.
Revenue vs Market: YUMC's revenue (7% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: YUMC's revenue (7% 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 (21.1%)
Next Steps
Past Performance
How has Yum China Holdings performed over the past 5 years?
27.1%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: YUMC's earnings have grown significantly by 27.1% per year over the past 5 years.
Accelerating Growth: YUMC's earnings growth over the past year (35.4%) exceeds its 5-year average (27.1% per year).
Earnings vs Industry: YUMC earnings growth over the past year (35.4%) exceeded the Hospitality industry -14.8%.
Return on Equity
High ROE: YUMC's Return on Equity (22.9%) is considered high.
Return on Assets
ROA vs Industry: YUMC has a higher Return on Assets than the Hospitality industry average last year.
Return on Capital Employed
ROCE Improving: YUMC's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is Yum China Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: YUMC's short term assets ($2.1B) exceeds its short term liabilities ($1.6B)
Long Term Liabilities: YUMC's short term assets (2.1B) exceeds 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?
1.11%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: YUMC's dividend (1.11%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: YUMC's dividend (1.11%) is low compared to the top 25% of dividend payers in the US market (3.68%).
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 (25.8%), 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 (25% payout ratio).
Next Steps
Management
What is the CEO of Yum China Holdings's salary, the management and board of directors tenure and is there insider trading?
1.6yrs
Average management tenure
CEO
Joey Wat (48yo)
1.6yrs
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: Insufficient data to establish whether Joey's total compensation is reasonable compared to companies of similar size in the US market.
Compensation vs Earnings: Joey's compensation has increased by more than 20% in the past year.
Management Age and Tenure
1.6yrs
Average Tenure
49.5yo
Average Age
Experienced Management: YUMC's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Age and Tenure
3.0yrs
Average Tenure
60yo
Average Age
Experienced Board: YUMC's board of directors are considered experienced (3 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 2,246 |
| Max Price | US$40.98 |
| Entity | Individual |
| Shares | 3,795 |
| Max Price | US$36.26 |
| Entity | Individual |
| Shares | 5,869 |
| Max Price | US$36.50 |
Ownership Breakdown
Management Team
Micky Pant (64yo)
Vice Chairman & Senior Advisor
- Tenure: 1.6yrs
- Compensation: US$1.28m
Joseph Chan
Chief Legal Officer
- Tenure: 0.3yrs
Joey Wat (48yo)
CEO & Director
- Tenure: 1.6yrs
- Compensation: US$10.49m
Danny Tan (50yo)
Chief Supply Chain Officer
- Tenure: 3yrs
- Compensation: US$3.25m
Alice Wang (49yo)
Chief Public Affairs Officer
- Tenure: 2.6yrs
Christie Ju
Vice President of Finance & Investor Relations
- Tenure: 0yrs
Xueling Lu (45yo)
Controller & Principal Accounting Officer
- Tenure: 1.8yrs
Aiken Yuen (59yo)
Chief People Officer
- Tenure: 1.6yrs
Leila Zhang
Chief Technology Officer
- Tenure: 0yrs
Steven Li
Chief Marketing Officer
- Tenure: 0yrs
Board Members
Christian Campbell (68yo)
Director
- Tenure: 3yrs
- Compensation: US$181.25k
Pete Bassi (70yo)
Independent Director
- Tenure: 3yrs
- Compensation: US$181.25k
Jon Linen (75yo)
Independent Director
- Tenure: 3yrs
- Compensation: US$181.25k
Elias Ettedgui (65yo)
Independent Director
- Tenure: 3yrs
- Compensation: US$195.00k
Louis Hsieh (55yo)
Independent Director
- Tenure: 3yrs
- Compensation: US$202.92k
Ruby Lu (48yo)
Independent Director
- Tenure: 3yrs
- Compensation: US$181.25k
Fred Hu (56yo)
Non-Executive Chairman
- Tenure: 2.9yrs
- Compensation: US$323.33k
Micky Pant (64yo)
Vice Chairman & Senior Advisor
- Tenure: 1.6yrs
- Compensation: US$1.28m
Ed Chan (56yo)
Independent Director
- Tenure: 3yrs
- Compensation: US$181.25k
Joey Wat (48yo)
CEO & Director
- Tenure: 1.6yrs
- Compensation: US$10.49m
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$16.351b
- Shares outstanding: 376.83m
- 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 Dawn ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/23 00:41 |
| End of Day Share Price | 2019/10/22 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.