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YUMC

Yum China Holdings NYSE:YUMC Stock Report

Last Price

US$48.07

Market Cap

US$20.2b

7D

-0.1%

1Y

-21.9%

Updated

14 Aug, 2022

Data

Company Financials +
YUMC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health6/6
Dividends2/6

YUMC Stock Overview

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

Yum China Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Yum China Holdings
Historical stock prices
Current Share PriceUS$48.07
52 Week HighUS$63.45
52 Week LowUS$33.55
Beta0.56
1 Month Change4.55%
3 Month Change21.85%
1 Year Change-21.89%
3 Year Change8.98%
5 Year Change29.74%
Change since IPO87.41%

Recent News & Updates

Aug 01
Yum China Holdings' (NYSE:YUMC) Dividend Will Be $0.12

Yum China Holdings' (NYSE:YUMC) Dividend Will Be $0.12

Yum China Holdings, Inc.'s ( NYSE:YUMC ) investors are due to receive a payment of $0.12 per share on 15th of...

Jul 28

Yum China declares $0.12 dividend

Yum China (NYSE:YUMC) declares $0.12/share quarterly dividend, in line with previous. Forward yield 1.02% Payable Sept. 15; for shareholders of record Aug. 25; ex-div Aug. 24. See YUMC Dividend Scorecard, Yield Chart, & Dividend Growth.

Jul 19
The Returns On Capital At Yum China Holdings (NYSE:YUMC) Don't Inspire Confidence

The Returns On Capital At Yum China Holdings (NYSE:YUMC) Don't Inspire Confidence

What trends should we look for it we want to identify stocks that can multiply in value over the long term? In a...

Shareholder Returns

YUMCUS HospitalityUS Market
7D-0.1%5.8%3.2%
1Y-21.9%-15.1%-10.2%

Return vs Industry: YUMC underperformed the US Hospitality industry which returned -15.1% over the past year.

Return vs Market: YUMC underperformed the US Market which returned -10.1% over the past year.

Price Volatility

Is YUMC's price volatile compared to industry and market?
YUMC volatility
YUMC Average Weekly Movement7.2%
Hospitality Industry Average Movement8.6%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: YUMC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: YUMC's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2016298,500Joey 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, 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 CapUS$20.17b
Earnings (TTM)US$762.00m
Revenue (TTM)US$9.64b

26.5x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
YUMC income statement (TTM)
RevenueUS$9.64b
Cost of RevenueUS$8.03b
Gross ProfitUS$1.62b
Other ExpensesUS$853.00m
EarningsUS$762.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.82
Gross Margin16.75%
Net Profit Margin7.90%
Debt/Equity Ratio0%

How did YUMC perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

27%

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 DateAug 24 2022
Dividend Pay DateSep 15 2022
Days until Ex dividend9 days
Days until Dividend pay date31 days

Does YUMC pay a reliable dividends?

See YUMC dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is YUMC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for YUMC?

Other financial metrics that can be useful for relative valuation.

YUMC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.1x
Enterprise Value/EBITDA19.2x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does YUMC's PE Ratio compare to its peers?

YUMC PE Ratio vs Peers
The above table shows the PE ratio for YUMC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average23.4x
DRI Darden Restaurants
16.9x5.3%US$16.2b
DPZ Domino's Pizza
31.5x11.3%US$14.8b
QSR Restaurant Brands International
22.6x4.9%US$27.2b
YUM Yum! Brands
22.7x7.4%US$33.6b
YUMC Yum China Holdings
26.5x27.4%US$20.2b

Price-To-Earnings vs Peers: YUMC is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the peer average (23.4x).


Price to Earnings Ratio vs Industry

How does YUMC's PE Ratio compare vs other companies in the US Hospitality Industry?

Price-To-Earnings vs Industry: YUMC is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the US Hospitality industry average (18.4x)


Price to Earnings Ratio vs Fair Ratio

What is YUMC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

YUMC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.5x
Fair PE Ratio42x

Price-To-Earnings vs Fair Ratio: YUMC is good value based on its Price-To-Earnings Ratio (26.5x) compared to the estimated Fair Price-To-Earnings Ratio (42x).


Share Price vs Fair Value

What is the Fair Price of YUMC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: YUMC ($48.07) is trading below our estimate of fair value ($59.12)

Significantly Below Fair Value: YUMC is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Yum China Holdings forecast to perform in the next 1 to 3 years based on estimates from 27 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


27.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: YUMC's forecast earnings growth (27.4% per year) is above the savings rate (1.9%).

Earnings vs Market: YUMC's earnings (27.4% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: YUMC's revenue (12.1% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: YUMC's revenue (12.1% 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 (11%).


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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


13.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: YUMC has a large one-off gain of $529.0M impacting its June 30 2022 financial results.

Growing Profit Margin: YUMC's current net profit margins (7.9%) are lower than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: YUMC's earnings have grown by 13.6% 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 (-23.9%) over the past year, making it difficult to compare to the Hospitality industry average (51%).


Return on Equity

High ROE: YUMC's Return on Equity (10.7%) is considered low.


Discover strong past performing companies

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 ($4.6B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: YUMC's short term assets ($4.6B) exceed its long term liabilities ($2.6B).


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


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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

  • Cash Flow Coverage


1.00%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 15 2022Ex Dividend DateAug 24 2022Dividend Pay DateSep 15 202222 days from Ex DividendBuy in the next 9 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: YUMC's dividend (1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: YUMC's dividend (1%) is low compared to the top 25% of dividend payers in the US market (3.96%).


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 reasonably low payout ratio (26.7%), YUMC's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (86.1%), 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?

4.4yrs

Average management tenure


CEO

Joey Wat (51 yo)

4.42yrs

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 ($USD16.56M) is about average for companies of similar size in the US market ($USD12.88M).

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 (4.4 years average tenure).


Board Members

Experienced Board: YUMC's board of directors are considered experienced (5.8 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.


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$20.169b
  • Shares outstanding: 419.57m
  • Website: https://www.yumchina.com

Number of Employees


Location

  • Yum China Holdings, Inc.
  • Yum China Building
  • No. 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 Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.