| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 4/6 |
| Past Performance | 2/6 |
| Financial Health | 6/6 |
| Dividends | 2/6 |
YUMC Stock Overview
Yum China Holdings, Inc. owns, operates, and franchises restaurants in China.
Yum China Holdings Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$45.67 |
| 52 Week High | US$69.67 |
| 52 Week Low | US$45.42 |
| Beta | 0.78 |
| 1 Month Change | -4.70% |
| 3 Month Change | -24.48% |
| 1 Year Change | -22.22% |
| 3 Year Change | 28.98% |
| 5 Year Change | 62.82% |
| Change since IPO | 78.05% |
Recent News & Updates
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...
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.
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
| YUMC | US Hospitality | US 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
| YUMC volatility | |
|---|---|
| YUMC Average Weekly Movement | 3.8% |
| Hospitality Industry Average Movement | 7.9% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2016 | 400,000 | Joey Wat | https://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
| YUMC fundamental statistics | |
|---|---|
| Market Cap | US$19.55b |
| Earnings (TTM) | US$666.00m |
| Revenue (TTM) | US$9.82b |
29.4x
P/E Ratio2.0x
P/S RatioIs YUMC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| YUMC income statement (TTM) | |
|---|---|
| Revenue | US$9.82b |
| Cost of Revenue | US$7.89b |
| Gross Profit | US$1.93b |
| Expenses | US$1.26b |
| Earnings | US$666.00m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 08, 2022
| Earnings per share (EPS) | 1.56 |
| Gross Margin | 19.63% |
| Net Profit Margin | 6.78% |
| Debt/Equity Ratio | 0% |
How did YUMC perform over the long term?
See historical performance and comparisonDividends
1.1%
Current Dividend Yield30%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 23:55 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| 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.