NYSE:YUMC

Stock Analysis Report

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Market Cap

US$28.0b

Last Updated

2021/06/23 01:24 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

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

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

Volatility Over Time: YUMC's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-2.3%

YUMC

-0.9%

US Hospitality

-0.1%

US Market


1 Year Return

30.9%

YUMC

53.6%

US Hospitality

39.0%

US Market

Return vs Industry: YUMC underperformed the US Hospitality industry which returned 53.6% over the past year.

Return vs Market: YUMC underperformed the US Market which returned 39% over the past year.


Shareholder returns

YUMCIndustryMarket
7 Day-2.3%-0.9%-0.1%
30 Day2.2%2.3%2.6%
90 Day10.3%-2.0%8.0%
1 Year31.6%30.9%54.2%53.6%41.2%39.0%
3 Year71.7%67.3%9.0%4.5%62.4%52.3%
5 Yearn/a80.1%66.7%132.3%106.2%

Long-Term 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

Valuation

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

28.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: YUMC ($66.5) is trading above our estimate of fair value ($58.04)

Significantly Below Fair Value: YUMC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: YUMC is good value based on its PE Ratio (28x) compared to the US Hospitality industry average (36.2x).

PE vs Market: YUMC is poor value based on its PE Ratio (28x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: YUMC is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: YUMC is overvalued based on its PB Ratio (4.4x) compared to the US Hospitality industry average (3.9x).


Future Growth

How is Yum China Holdings forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: YUMC's forecast earnings growth (12.2% per year) is above the savings rate (2%).

Earnings vs Market: YUMC's earnings (12.2% per year) are forecast to grow slower than the US market (15.6% per year).

High Growth Earnings: YUMC's earnings are forecast to grow, but not significantly.

Revenue vs Market: YUMC's revenue (9.3% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: YUMC's revenue (9.3% 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 (14.8%).


Past Performance

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

14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: YUMC has high quality earnings.

Growing Profit Margin: YUMC's current net profit margins (10.5%) are higher than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: YUMC's earnings have grown by 14.1% per year over the past 5 years.

Accelerating Growth: YUMC's earnings growth over the past year (72.2%) exceeds its 5-year average (14.1% per year).

Earnings vs Industry: YUMC earnings growth over the past year (72.2%) exceeded the Hospitality industry -8.1%.


Return on Equity

High ROE: YUMC's Return on Equity (15%) is considered low.


Financial Health

How is Yum China Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: YUMC's short term assets ($4.8B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: YUMC's short term assets ($4.8B) exceed its long term liabilities ($2.3B).


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?

0.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: YUMC's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: YUMC's dividend (0.72%) is low compared to the top 25% of dividend payers in the US market (3.45%).


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 low payout ratio (10.1%), YUMC's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: YUMC's dividends in 3 years are forecast to be well covered by earnings (28.1% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Joey Wat (49 yo)

3.25yrs

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 ($USD21.17M) is above average for companies of similar size in the US market ($USD11.27M).

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


Leadership Team

Experienced Management: YUMC's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: YUMC's board of directors are considered experienced (4.6 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 11.7%.


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$27.970b
  • Shares outstanding: 420.60m
  • 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


Biography

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, H...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/23 01:24
End of Day Share Price2021/06/22 00:00
Earnings2021/03/31
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.