YUM CHINA HOLDINGS INC (YUMC)
US98850P1093 - Common Stock
Taking everything into account, YUMC scores 6 out of 10 in our fundamental rating. YUMC was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. YUMC is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. YUMC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
YUMC had positive earnings in the past year.
YUMC had a positive operating cash flow in the past year.
YUMC had positive earnings in each of the past 5 years.
In the past 5 years YUMC always reported a positive cash flow from operatings.
1.2 Ratios
YUMC has a better Return On Assets (7.26%) than 79.85% of its industry peers.
Looking at the Return On Equity, with a value of 14.45%, YUMC is in the better half of the industry, outperforming 74.63% of the companies in the same industry.
YUMC's Return On Invested Capital of 8.44% is fine compared to the rest of the industry. YUMC outperforms 67.16% of its industry peers.
YUMC had an Average Return On Invested Capital over the past 3 years of 6.34%. This is below the industry average of 10.27%.
The last Return On Invested Capital (8.44%) for YUMC is above the 3 year average (6.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.26% | ||
| ROE | 14.45% | ||
| ROIC | 8.44% |
ROA(3y)6.03%
ROA(5y)7.11%
ROE(3y)11.25%
ROE(5y)13.91%
ROIC(3y)6.34%
ROIC(5y)7.4%
1.3 Margins
YUMC has a better Profit Margin (7.61%) than 67.91% of its industry peers.
In the last couple of years the Profit Margin of YUMC has declined.
YUMC's Operating Margin of 9.94% is in line compared to the rest of the industry. YUMC outperforms 53.73% of its industry peers.
In the last couple of years the Operating Margin of YUMC has remained more or less at the same level.
YUMC has a worse Gross Margin (41.72%) than 61.19% of its industry peers.
In the last couple of years the Gross Margin of YUMC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.94% | ||
| PM (TTM) | 7.61% | ||
| GM | 41.72% |
OM growth 3Y5.33%
OM growth 5Y0.95%
PM growth 3Y-7.4%
PM growth 5Y-2.19%
GM growth 3Y-0.38%
GM growth 5Y-1.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so YUMC is still creating some value.
Compared to 1 year ago, YUMC has less shares outstanding
YUMC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for YUMC is higher compared to a year ago.
2.2 Solvency
YUMC has an Altman-Z score of 3.38. This indicates that YUMC is financially healthy and has little risk of bankruptcy at the moment.
YUMC has a better Altman-Z score (3.38) than 82.09% of its industry peers.
YUMC has a debt to FCF ratio of 0.71. This is a very positive value and a sign of high solvency as it would only need 0.71 years to pay back of all of its debts.
The Debt to FCF ratio of YUMC (0.71) is better than 91.04% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that YUMC is not too dependend on debt financing.
YUMC has a Debt to Equity ratio of 0.08. This is amongst the best in the industry. YUMC outperforms 84.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 3.38 |
ROIC/WACC1.11
WACC7.61%
2.3 Liquidity
A Current Ratio of 1.23 indicates that YUMC should not have too much problems paying its short term obligations.
YUMC has a Current ratio of 1.23. This is in the better half of the industry: YUMC outperforms 62.69% of its industry peers.
YUMC has a Quick Ratio of 1.09. This is a normal value and indicates that YUMC is financially healthy and should not expect problems in meeting its short term obligations.
YUMC has a better Quick ratio (1.09) than 63.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.64% over the past year.
The Earnings Per Share has been growing slightly by 5.09% on average over the past years.
The Revenue has been growing slightly by 6.77% in the past year.
Measured over the past years, YUMC shows a small growth in Revenue. The Revenue has been growing by 5.46% on average per year.
EPS 1Y (TTM)18.64%
EPS 3Y9.1%
EPS 5Y5.09%
EPS Q2Q%17.02%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y9.93%
Revenue growth 5Y5.46%
Sales Q2Q%0.94%
3.2 Future
Based on estimates for the next years, YUMC will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.50% on average per year.
YUMC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.19% yearly.
EPS Next Y12.89%
EPS Next 2Y12.46%
EPS Next 3Y12.58%
EPS Next 5Y14.5%
Revenue Next Year5.1%
Revenue Next 2Y6.73%
Revenue Next 3Y7.32%
Revenue Next 5Y10.19%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
YUMC is valuated rather expensively with a Price/Earnings ratio of 23.34.
YUMC's Price/Earnings ratio is a bit cheaper when compared to the industry. YUMC is cheaper than 70.15% of the companies in the same industry.
When comparing the Price/Earnings ratio of YUMC to the average of the S&P500 Index (30.16), we can say YUMC is valued slightly cheaper.
The Price/Forward Earnings ratio is 19.38, which indicates a rather expensive current valuation of YUMC.
YUMC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. YUMC is cheaper than 67.91% of the companies in the same industry.
YUMC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.34 | ||
| Fwd PE | 19.38 |
4.2 Price Multiples
YUMC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. YUMC is cheaper than 71.64% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of YUMC indicates a somewhat cheap valuation: YUMC is cheaper than 64.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.73 | ||
| EV/EBITDA | 8.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates YUMC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of YUMC may justify a higher PE ratio.
YUMC's earnings are expected to grow with 12.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.81
PEG (5Y)4.58
EPS Next 2Y12.46%
EPS Next 3Y12.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.45%, YUMC has a reasonable but not impressive dividend return.
YUMC's Dividend Yield is a higher than the industry average which is at 2.91.
Compared to the average S&P500 Dividend Yield of 2.25, YUMC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
The dividend of YUMC has a limited annual growth rate of 4.41%.
YUMC has been paying a dividend for over 5 years, so it has already some track record.
YUMC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.41%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
YUMC pays out 27.86% of its income as dividend. This is a sustainable payout ratio.
The dividend of YUMC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.86%
EPS Next 2Y12.46%
EPS Next 3Y12.58%
YUM CHINA HOLDINGS INC
NYSE:YUMC (11/4/2024, 10:13:09 AM)
49.02
+3.95 (+8.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap18.84B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.34 | ||
| Fwd PE | 19.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.81
PEG (5Y)4.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.26% | ||
| ROE | 14.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.94% | ||
| PM (TTM) | 7.61% | ||
| GM | 41.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)18.64%
EPS 3Y9.1%
EPS 5Y
EPS Q2Q%
EPS Next Y12.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.77%
Revenue growth 3Y9.93%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y