Yum China Holdings
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
| YUMC | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.3% | -0.9% | -0.1% |
| 30 Day | 2.2% | 2.3% | 2.6% |
| 90 Day | 10.3% | -2.0% | 8.0% |
| 1 Year | 31.6%30.9% | 54.2%53.6% | 41.2%39.0% |
| 3 Year | 71.7%67.3% | 9.0%4.5% | 62.4%52.3% |
| 5 Year | n/a | 80.1%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
1 week ago | Simply Wall St
Is Yum China Holdings, Inc.'s(NYSE:YUMC) Recent Stock Performance Tethered To Its Strong Fundamentals?3 weeks ago | Simply Wall St
Is Yum China Holdings, Inc. (NYSE:YUMC) Potentially Undervalued?1 month ago | Simply Wall St
Yum China Holdings, Inc. (NYSE:YUMC) Looks Interesting, And It's About To Pay A DividendValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/23 01:24 |
| End of Day Share Price | 2021/06/22 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.