Yum China Holdings (NYSE:YUMC) - Share price, News & Analysis

YUMC fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	1/6
Financial Health	6/6
Dividends	2/6

YUMC Stock Overview

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

Rewards

Earnings are forecast to grow 27.66% per year

Risk Analysis

High level of non-cash earnings

Yum China Holdings Competitors

McDonald's

NYSE:MCD

US$173.0b

Domino's Pizza

NYSE:DPZ

US$12.3b

Papa John's International

NasdaqGS:PZZA

US$2.8b

Price History & Performance

Summary of all time highs, changes and price drops for Yum China Holdings
Historical stock prices
Current Share Price	US$42.19
52 Week High	US$69.67
52 Week Low	US$33.55
Beta	0.67
1 Month Change	3.10%
3 Month Change	-19.52%
1 Year Change	-35.15%
3 Year Change	9.61%
5 Year Change	11.73%
Change since IPO	64.48%

Recent News & Updates

May 08

Yum China Holdings (NYSE:YUMC) Has Re-Affirmed Its Dividend Of US$0.12

Yum China Holdings, Inc. ( NYSE:YUMC ) has announced that it will pay a dividend of US$0.12 per share on the 21st of...

Shareholder Returns

	YUMC	US Hospitality	US Market
7D	7.4%	-3.6%	-2.7%
1Y	-35.2%	-24.5%	-12.9%

Return vs Industry: YUMC underperformed the US Hospitality industry which returned -24.5% over the past year.

Return vs Market: YUMC underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is YUMC's price volatile compared to industry and market?
YUMC volatility
YUMC Average Weekly Movement	9.6%
Hospitality Industry Average Movement	9.2%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: YUMC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: YUMC's weekly volatility (10%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2016	298,500	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, Lavazza, COFFii & JOY, Taco Bell, and East Dawning brands, which specialize in chicken, pizza, hot pot cooking, simmer pot, Italian coffee, specialty coffee, Mexican-style food, and Chinese food categories.

Yum China Holdings Fundamentals Summary

How do Yum China Holdings's earnings and revenue compare to its market cap?
YUMC fundamental statistics
Market Cap	US$17.78b
Earnings (TTM)	US$860.00m
Revenue (TTM)	US$9.96b

20.7x

P/E Ratio

1.8x

P/S Ratio

Is YUMC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
YUMC income statement (TTM)
Revenue	US$9.96b
Cost of Revenue	US$8.22b
Gross Profit	US$1.74b
Other Expenses	US$880.00m
Earnings	US$860.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.04
Gross Margin	17.46%
Net Profit Margin	8.63%
Debt/Equity Ratio	0%

How did YUMC perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

24%

Payout Ratio

Does YUMC pay a reliable dividends?

See YUMC dividend history and benchmarks

When do you need to buy YUMC by to receive an upcoming dividend?
Yum China Holdings dividend dates
Ex Dividend Date	May 27 2022
Dividend Pay Date	Jun 21 2022
Days until Ex dividend	4 days
Days until Dividend pay date	29 days

Does YUMC pay a reliable dividends?

See YUMC dividend history and benchmarks

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

20.67x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: YUMC ($42.19) is trading above our estimate of fair value ($40.12)

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 (20.7x) compared to the US Hospitality industry average (17.3x).

PE vs Market: YUMC is poor value based on its PE Ratio (20.7x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: YUMC is good value based on its PEG Ratio (0.7x)

Price to Book Ratio

PB vs Industry: YUMC's PB Ratio (2.6x) 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 25 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

27.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: YUMC's forecast earnings growth (27.7% per year) is above the savings rate (1.9%).

Earnings vs Market: YUMC's earnings (27.7% per year) are forecast to grow faster than the US market (12.5% per year).

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

Revenue vs Market: YUMC's revenue (12.8% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: YUMC's revenue (12.8% 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 (10.6%).

Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

15.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: YUMC has a high level of non-cash earnings.

Growing Profit Margin: YUMC's current net profit margins (8.6%) are lower than last year (10.5%).

Past Earnings Growth Analysis

Earnings Trend: YUMC's earnings have grown by 15.3% 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 (-9.7%) over the past year, making it difficult to compare to the Hospitality industry average (157.9%).

Return on Equity

High ROE: YUMC's Return on Equity (11.5%) is considered low.

Financial Health

How is Yum China Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: YUMC's short term assets ($4.3B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: YUMC's short term assets ($4.3B) exceed its long term liabilities ($2.8B).

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?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.14%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: YUMC's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: YUMC's dividend (1.14%) is low compared to the top 25% of dividend payers in the US market (4.11%).

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 5 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (23.6%), YUMC's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (83.6%), YUMC's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

4.2yrs

Average management tenure

CEO

Joey Wat (50 yo)

4.17yrs

Tenure

US$16,555,672

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 ($USD16.56M) is about average for companies of similar size in the US market ($USD13.34M).

Compensation vs Earnings: Joey's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: YUMC's management team is considered experienced (4.2 years average tenure).

Board Members

Experienced Board: YUMC's board of directors are considered experienced (5.5 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31