YUM CHINA HOLDINGS INC (YUMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YUMC - US98850P1093 - Common Stock
49.14 USD
+0.11 (+0.22%)
49.14 USD
0 (0%)
YUMC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. While YUMC has a great health rating, its profitability is only average at the moment. 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.
Each year in the past 5 years YUMC has been profitable.
YUMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
YUMC's Return On Assets of 8.19% is fine compared to the rest of the industry. YUMC outperforms 78.20% of its industry peers.
The Return On Equity of YUMC (15.88%) is better than 72.93% of its industry peers.
YUMC's Return On Invested Capital of 10.78% is fine compared to the rest of the industry. YUMC outperforms 75.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for YUMC is below the industry average of 10.39%.
The last Return On Invested Capital (10.78%) for YUMC is above the 3 year average (8.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | 15.88% | ||
| ROIC | 10.78% |
ROA(3y)6.27%
ROA(5y)6.7%
ROE(3y)11.88%
ROE(5y)12.46%
ROIC(3y)8.01%
ROIC(5y)7.07%
1.3 Margins
YUMC's Profit Margin of 7.81% is fine compared to the rest of the industry. YUMC outperforms 68.42% of its industry peers.
YUMC's Profit Margin has been stable in the last couple of years.
The Operating Margin of YUMC (11.18%) is better than 62.41% of its industry peers.
In the last couple of years the Operating Margin of YUMC has remained more or less at the same level.
The Gross Margin of YUMC (41.58%) is worse than 61.65% of its industry peers.
YUMC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.18% | ||
| PM (TTM) | 7.81% | ||
| GM | 41.58% |
OM growth 3Y10.45%
OM growth 5Y1.23%
PM growth 3Y-7.08%
PM growth 5Y-0.16%
GM growth 3Y-0.12%
GM growth 5Y-0.93%
2. Health
2.1 Basic Checks
YUMC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, YUMC has less shares outstanding
The number of shares outstanding for YUMC has been increased compared to 5 years ago.
The debt/assets ratio for YUMC has been reduced compared to a year ago.
2.2 Solvency
YUMC has an Altman-Z score of 3.77. This indicates that YUMC is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.77, YUMC belongs to the best of the industry, outperforming 82.71% of the companies in the same industry.
The Debt to FCF ratio of YUMC is 0.09, which is an excellent value as it means it would take YUMC, only 0.09 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.09, YUMC belongs to the top of the industry, outperforming 93.23% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that YUMC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.01, YUMC belongs to the top of the industry, outperforming 87.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 3.77 |
ROIC/WACC1.44
WACC7.47%
2.3 Liquidity
A Current Ratio of 1.32 indicates that YUMC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.32, YUMC is in the better half of the industry, outperforming 65.41% of the companies in the same industry.
YUMC has a Quick Ratio of 1.15. This is a normal value and indicates that YUMC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.15, YUMC is in the better half of the industry, outperforming 63.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.14% over the past year.
The Earnings Per Share has been growing slightly by 4.39% on average over the past years.
YUMC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.29%.
YUMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.19% yearly.
EPS 1Y (TTM)6.14%
EPS 3Y24.41%
EPS 5Y4.39%
EPS Q2Q%-1.3%
Revenue 1Y (TTM)3.29%
Revenue growth 3Y4.68%
Revenue growth 5Y5.19%
Sales Q2Q%4.4%
3.2 Future
The Earnings Per Share is expected to grow by 17.24% on average over the next years. This is quite good.
YUMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.39% yearly.
EPS Next Y8.4%
EPS Next 2Y11.85%
EPS Next 3Y11.82%
EPS Next 5Y17.24%
Revenue Next Year2.94%
Revenue Next 2Y4.3%
Revenue Next 3Y4.72%
Revenue Next 5Y7.39%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.31 indicates a rather expensive valuation of YUMC.
69.17% of the companies in the same industry are more expensive than YUMC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of YUMC to the average of the S&P500 Index (26.92), we can say YUMC is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.86, the valuation of YUMC can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of YUMC indicates a somewhat cheap valuation: YUMC is cheaper than 70.68% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of YUMC to the average of the S&P500 Index (23.46), we can say YUMC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.31 | ||
| Fwd PE | 16.86 |
4.2 Price Multiples
YUMC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. YUMC is cheaper than 79.70% 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 75.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.87 | ||
| EV/EBITDA | 8.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
YUMC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.42
PEG (5Y)4.63
EPS Next 2Y11.85%
EPS Next 3Y11.82%
5. Dividend
5.1 Amount
YUMC has a Yearly Dividend Yield of 2.22%. Purely for dividend investing, there may be better candidates out there.
YUMC's Dividend Yield is rather good when compared to the industry average which is at 1.66. YUMC pays more dividend than 82.71% of the companies in the same industry.
YUMC's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
5.2 History
The dividend of YUMC has a limited annual growth rate of 5.67%.
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)5.67%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
36.39% of the earnings are spent on dividend by YUMC. This is a low number and sustainable payout ratio.
YUMC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.39%
EPS Next 2Y11.85%
EPS Next 3Y11.82%
49.14
+0.11 (+0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners76.62%
Inst Owner Change-12.69%
Ins Owners0.37%
Ins Owner Change0.04%
Market Cap17.76B
Revenue(TTM)11.57B
Net Income(TTM)904.00M
Analysts84
Price Target59.03 (20.13%)
Short Float %1.91%
Short Ratio4.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Yearly Dividend0.63
Dividend Growth(5Y)5.67%
DP36.39%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.28%
Min EPS beat(2)-0.95%
Max EPS beat(2)0.39%
EPS beat(4)2
Avg EPS beat(4)0%
Min EPS beat(4)-1.21%
Max EPS beat(4)1.77%
EPS beat(8)6
Avg EPS beat(8)10.47%
EPS beat(12)8
Avg EPS beat(12)7.88%
EPS beat(16)10
Avg EPS beat(16)287.31%
Revenue beat(2)0
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)-1.35%
Revenue beat(4)0
Avg Revenue beat(4)-4.21%
Min Revenue beat(4)-9.31%
Max Revenue beat(4)-1.35%
Revenue beat(8)1
Avg Revenue beat(8)-3.34%
Revenue beat(12)2
Avg Revenue beat(12)-3.41%
Revenue beat(16)2
Avg Revenue beat(16)-3.34%
PT rev (1m)0.2%
PT rev (3m)-0.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.46%
EPS NY rev (1m)-1.72%
EPS NY rev (3m)-2.31%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.31 | ||
| Fwd PE | 16.86 | ||
| P/S | 1.54 | ||
| P/FCF | 18.87 | ||
| P/OCF | 11.78 | ||
| P/B | 3.12 | ||
| P/tB | 4.91 | ||
| EV/EBITDA | 8.12 |
EPS(TTM)2.42
EY4.92%
EPS(NY)2.92
Fwd EY5.93%
FCF(TTM)2.6
FCFY5.3%
OCF(TTM)4.17
OCFY8.49%
SpS32.01
BVpS15.75
TBVpS10.02
PEG (NY)2.42
PEG (5Y)4.63
Graham Number29.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | 15.88% | ||
| ROCE | 14.78% | ||
| ROIC | 10.78% | ||
| ROICexc | 14.26% | ||
| ROICexgc | 20.74% | ||
| OM | 11.18% | ||
| PM (TTM) | 7.81% | ||
| GM | 41.58% | ||
| FCFM | 8.13% |
ROA(3y)6.27%
ROA(5y)6.7%
ROE(3y)11.88%
ROE(5y)12.46%
ROIC(3y)8.01%
ROIC(5y)7.07%
ROICexc(3y)10.81%
ROICexc(5y)10.5%
ROICexgc(3y)15.53%
ROICexgc(5y)15.57%
ROCE(3y)11.07%
ROCE(5y)9.74%
ROICexgc growth 3Y8.41%
ROICexgc growth 5Y-4.9%
ROICexc growth 3Y14.1%
ROICexc growth 5Y-7.31%
OM growth 3Y10.45%
OM growth 5Y1.23%
PM growth 3Y-7.08%
PM growth 5Y-0.16%
GM growth 3Y-0.12%
GM growth 5Y-0.93%
F-Score7
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 124.89% | ||
| Cap/Sales | 4.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.32% | ||
| Profit Quality | 104.09% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 3.77 |
F-Score7
WACC7.47%
ROIC/WACC1.44
Cap/Depr(3y)139.21%
Cap/Depr(5y)128.85%
Cap/Sales(3y)6.6%
Cap/Sales(5y)6.37%
Profit Quality(3y)112.23%
Profit Quality(5y)94%
High Growth Momentum
Growth
EPS 1Y (TTM)6.14%
EPS 3Y24.41%
EPS 5Y4.39%
EPS Q2Q%-1.3%
EPS Next Y8.4%
EPS Next 2Y11.85%
EPS Next 3Y11.82%
EPS Next 5Y17.24%
Revenue 1Y (TTM)3.29%
Revenue growth 3Y4.68%
Revenue growth 5Y5.19%
Sales Q2Q%4.4%
Revenue Next Year2.94%
Revenue Next 2Y4.3%
Revenue Next 3Y4.72%
Revenue Next 5Y7.39%
EBIT growth 1Y12.05%
EBIT growth 3Y15.62%
EBIT growth 5Y6.49%
EBIT Next Year54.31%
EBIT Next 3Y21.42%
EBIT Next 5Y18.99%
FCF growth 1Y25.63%
FCF growth 3Y17.33%
FCF growth 5Y-0.98%
OCF growth 1Y6.35%
OCF growth 3Y7.85%
OCF growth 5Y3.67%
YUM CHINA HOLDINGS INC / YUMC FAQ
What is the ChartMill fundamental rating of YUM CHINA HOLDINGS INC (YUMC) stock?
ChartMill assigns a fundamental rating of 6 / 10 to YUMC.
What is the valuation status of YUM CHINA HOLDINGS INC (YUMC) stock?
ChartMill assigns a valuation rating of 5 / 10 to YUM CHINA HOLDINGS INC (YUMC). This can be considered as Fairly Valued.
Can you provide the profitability details for YUM CHINA HOLDINGS INC?
YUM CHINA HOLDINGS INC (YUMC) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for YUMC stock?
The Earnings per Share (EPS) of YUM CHINA HOLDINGS INC (YUMC) is expected to grow by 8.4% in the next year.
Can you provide the dividend sustainability for YUMC stock?
The dividend rating of YUM CHINA HOLDINGS INC (YUMC) is 6 / 10 and the dividend payout ratio is 36.39%.