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YUMC

Yum China HoldingsNYSE:YUMC Stock Report

Last Price

US$45.67

Market Cap

US$19.6b

7D

-1.8%

1Y

-22.2%

Updated

21 Jan, 2022

Data

Company Financials +
YUMC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance2/6
Financial Health6/6
Dividends2/6

YUMC Stock Overview

Yum China Holdings, Inc. owns, operates, and franchises restaurants in China.

Yum China Holdings Competitors

McDonald's

NYSE:MCD

US$189.2b

Domino's Pizza

NYSE:DPZ

US$16.5b

Papa John's International

NasdaqGS:PZZA

US$4.2b

Price History & Performance

Summary of all time highs, changes and price drops for Yum China Holdings
Historical stock prices
Current Share PriceUS$45.67
52 Week HighUS$69.67
52 Week LowUS$45.42
Beta0.78
1 Month Change-4.70%
3 Month Change-24.48%
1 Year Change-22.22%
3 Year Change28.98%
5 Year Change62.82%
Change since IPO78.05%

Recent News & Updates

Dec 24
Investors Could Be Concerned With Yum China Holdings' (NYSE:YUMC) Returns On Capital

Investors Could Be Concerned With Yum China Holdings' (NYSE:YUMC) Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Amongst other things, we'll want to...

Nov 04

A Safer Bet On China's Growth: Yum China

Yum China owns the licensing rights to KFC, Pizza Hut, and a number of local brands in China. It continues to see robust store expansion and is making digital investments to make store operations more efficient. Meanwhile, it maintains a very strong balance sheet, and I highlight what makes the latest drop a buying opportunity.

Nov 01
Yum China Holdings (NYSE:YUMC) Will Pay A Dividend Of US$0.12

Yum China Holdings (NYSE:YUMC) Will Pay A Dividend Of US$0.12

Yum China Holdings, Inc. ( NYSE:YUMC ) will pay a dividend of US$0.12 on the 16th of December. The dividend yield is...

Shareholder Returns

YUMCUS HospitalityUS Market
7D-1.8%-3.9%-4.0%
1Y-22.2%-6.1%6.6%

Return vs Industry: YUMC underperformed the US Hospitality industry which returned -6.1% over the past year.

Return vs Market: YUMC underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is YUMC's price volatile compared to industry and market?
YUMC volatility
YUMC Average Weekly Movement3.8%
Hospitality Industry Average Movement7.9%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: YUMC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: YUMC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2016400,000Joey Wathttps://www.yumchina.com

Yum China Holdings, Inc. owns, operates, and franchises restaurants in China. The company operates through two segments, KFC and Pizza Hut. It operates restaurants under the KFC, Pizza Hut, Little Sheep, Huang Ji Huang, COFFii & JOY, East Dawning, Taco Bell, and Lavazza brands, which specialize in chicken, pizza, hot pot cooking, Chinese food, Mexican-style food, specialty coffee, simmer pot, and Italian coffee categories.

Yum China Holdings Fundamentals Summary

How do Yum China Holdings's earnings and revenue compare to its market cap?
YUMC fundamental statistics
Market CapUS$19.55b
Earnings (TTM)US$666.00m
Revenue (TTM)US$9.82b

29.4x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
YUMC income statement (TTM)
RevenueUS$9.82b
Cost of RevenueUS$7.89b
Gross ProfitUS$1.93b
ExpensesUS$1.26b
EarningsUS$666.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 08, 2022

Earnings per share (EPS)1.56
Gross Margin19.63%
Net Profit Margin6.78%
Debt/Equity Ratio0%

How did YUMC perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

30%

Payout Ratio

Valuation

Is Yum China Holdings undervalued compared to its fair value and its price relative to the market?

34.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: YUMC ($45.68) is trading below our estimate of fair value ($69.49)

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 (29.4x) compared to the US Hospitality industry average (24.6x).

PE vs Market: YUMC is poor value based on its PE Ratio (29.4x) compared to the US market (16.7x).


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's PB Ratio (3x) is in line with the US Hospitality industry average.


Future Growth

How is Yum China Holdings forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

21.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: YUMC's forecast earnings growth (21% per year) is above the savings rate (2%).

Earnings vs Market: YUMC's earnings (21% per year) are forecast to grow faster than the US market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: YUMC's revenue (11.7% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: YUMC's revenue (11.7% 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 low in 3 years time (18%).


Past Performance

How has Yum China Holdings performed over the past 5 years?

13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: YUMC has high quality earnings.

Growing Profit Margin: YUMC's current net profit margins (6.8%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: YUMC's earnings have grown by 13.7% 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 (-7.9%) over the past year, making it difficult to compare to the Hospitality industry average (79.7%).


Return on Equity

High ROE: YUMC's Return on Equity (10.3%) is considered low.


Financial Health

How is Yum China Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: YUMC's short term assets ($5.1B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: YUMC's short term assets ($5.1B) exceed its long term liabilities ($2.4B).


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


Dividend

What is Yum China Holdings's current dividend yield, its reliability and sustainability?

1.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: YUMC's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: YUMC's dividend (1.05%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: YUMC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: YUMC's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.3%), 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 (36.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Joey Wat (50 yo)

3.83yrs

Tenure

US$21,171,578

Compensation

Ms. Joey Wat has been the Chief Executive Officer of Yum China Holding, Inc since March 1, 2018 and served as its President and Chief Operating Officer since February 7, 2017 until February 2018 and serves...


CEO Compensation Analysis

Compensation vs Market: Joey's total compensation ($USD21.17M) is above average for companies of similar size in the US market ($USD11.42M).

Compensation vs Earnings: Joey's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: YUMC's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: YUMC's board of directors are considered experienced (5.2 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

Yum China Holdings, Inc.'s 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
  • Implied Market Cap: US$19.553b
  • Shares outstanding: 428.13m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:55
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.