Yum China Holdings
Market Cap
US$20.5b
Last Updated
2020/08/14 12:49 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 high growth potential.
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
2.1%
YUMC
6.1%
US Hospitality
0.5%
US Market
1 Year Return
23.4%
YUMC
-18.0%
US Hospitality
18.7%
US Market
Return vs Industry: YUMC exceeded the US Hospitality industry which returned -17.6% over the past year.
Return vs Market: YUMC exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| YUMC | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.1% | 6.1% | 0.5% |
| 30 Day | 3.8% | 5.5% | 4.9% |
| 90 Day | 15.5% | 24.7% | 19.8% |
| 1 Year | 24.5%23.4% | -16.3%-18.0% | 21.2%18.7% |
| 3 Year | 51.1%47.0% | -10.7%-16.7% | 46.2%36.8% |
| 5 Year | n/a | 9.9%-1.8% | 85.3%65.1% |
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
Is Yum China Holdings, Inc.'s (NYSE:YUMC) Latest Stock Performance A Reflection Of Its Financial Health?4 weeks ago | Simply Wall St
Should You Be Impressed By Yum China Holdings' (NYSE:YUMC) Returns on Capital?1 month ago | Simply Wall St
Yum China Holdings, Inc.'s (NYSE:YUMC) Intrinsic Value Is Potentially 23% Below Its Share PriceValuation
Is Yum China Holdings undervalued compared to its fair value and its price relative to the market?
40.38x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: YUMC ($54.45) is trading above our estimate of fair value ($49.11)
Significantly Below Fair Value: YUMC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: YUMC is poor value based on its PE Ratio (40.4x) compared to the US Hospitality industry average (31.4x).
PE vs Market: YUMC is poor value based on its PE Ratio (40.4x) compared to the US market (19.2x).
Price to Earnings Growth Ratio
PEG Ratio: YUMC is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: YUMC is overvalued based on its PB Ratio (6.4x) compared to the US Hospitality industry average (2.1x).
Next Steps
Future Growth
How is Yum China Holdings forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
29.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: YUMC's forecast earnings growth (29.3% per year) is above the savings rate (2.2%).
Earnings vs Market: YUMC's earnings (29.3% per year) are forecast to grow faster than the US market (24.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: YUMC's revenue (13% per year) is forecast to grow faster than the US market (9.5% per year).
High Growth Revenue: YUMC's revenue (13% 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 (21.2%)
Next Steps
Past Performance
How has Yum China Holdings performed over the past 5 years?
11.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: YUMC has high quality earnings.
Growing Profit Margin: YUMC's current net profit margins (6.3%) are lower than last year (7.9%).
Past Earnings Growth Analysis
Earnings Trend: YUMC's earnings have grown by 11.9% per year over the past 5 years.
Accelerating Growth: YUMC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: YUMC had negative earnings growth (-25.1%) over the past year, making it difficult to compare to the Hospitality industry average (-48.3%).
Return on Equity
High ROE: YUMC's Return on Equity (16.2%) is considered low.
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 no debt compared to 5 years ago when its debt to equity ratio was 0.03%.
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
Next Steps
Dividend
What is Yum China Holdings's current dividend yield, its reliability and sustainability?
0.84%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate YUMC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate YUMC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if YUMC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if YUMC's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: YUMC is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of YUMC's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.6yrs
Average management tenure
CEO
Joey Wat (49 yo)
2.42yrs
Tenure
US$12,170,001
Compensation
Ms. Joey Wat has been the Chief Executive Officer of Yum China Holding, Inc since March 1, 2018 and has served as its President and Chief Operating Officer since February 7, 2017 until February 2018 and se ...
CEO Compensation Analysis
Compensation vs Market: Joey's total compensation ($USD12.17M) is about average for companies of similar size in the US market ($USD11.31M).
Compensation vs Earnings: Joey's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.42yrs | US$12.17m | 0.015% $ 3.1m | |
| Chief Financial Officer | 0.83yr | US$2.00m | no data | |
| Chief People Officer | 2.42yrs | US$2.14m | no data | |
| Chief Supply Chain Officer | 3.83yrs | US$3.36m | 0.0065% $ 1.3m | |
| Controller & Principal Accounting Officer | 2.58yrs | no data | no data | |
| Chief Technology Officer | no data | no data | 0.00070% $ 143.7k | |
| Vice President of Finance & Investor Relations | no data | no data | no data | |
| Chief Legal Officer | 1.17yrs | no data | no data | |
| Chief Public Affairs Officer | 3.42yrs | no data | 0.0022% $ 451.7k | |
| Chief Marketing Officer | no data | no data | no data | |
| Chief Growth Officer | 3.83yrs | no data | no data | |
| Chief Development Officer | 3.83yrs | no data | 0.0014% $ 285.4k |
2.6yrs
Average Tenure
50.5yo
Average Age
Experienced Management: YUMC's management team is considered experienced (2.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.42yrs | US$12.17m | 0.015% $ 3.1m | |
| Independent Director | 3.83yrs | US$305.00k | 0.016% $ 3.3m | |
| Independent Director | 3.83yrs | US$275.00k | 0.015% $ 3.1m | |
| Independent Director | 3.83yrs | US$275.00k | 0.0075% $ 1.5m | |
| Independent Director | 3.83yrs | US$217.71k | 0.016% $ 3.2m | |
| Independent Director | 3.83yrs | US$295.00k | 0.0085% $ 1.7m | |
| Independent Non-Executive Chairman | 3.75yrs | US$515.00k | 0.0086% $ 1.8m | |
| Independent Director | 3.83yrs | US$290.00k | 0.0074% $ 1.5m | |
| Independent Director | 3.08yrs | US$275.00k | 0.0066% $ 1.3m | |
| Independent Director | 3.83yrs | US$217.71k | 0.0074% $ 1.5m | |
| Independent Director | 1.25yrs | US$275.00k | 0.0033% $ 673.5k |
3.8yrs
Average Tenure
57yo
Average Age
Experienced Board: YUMC's board of directors are considered experienced (3.8 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$20.534b
- Shares outstanding: 377.11m
- 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 | 2020/08/14 12:49 |
| End of Day Share Price | 2020/08/13 00:00 |
| Earnings | 2020/06/30 |
| 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.