YUM CHINA HOLDINGS INC (YUMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YUMC - US98850P1093 - Common Stock
46.23 USD
-0.37 (-0.79%)
46.23 USD
0 (0%)
Overall YUMC gets a fundamental rating of 6 out of 10. We evaluated YUMC against 132 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
In the past year YUMC was profitable.
YUMC had a positive operating cash flow in the past year.
Each year in the past 5 years YUMC has been profitable.
In the past 5 years YUMC always reported a positive cash flow from operatings.
1.2 Ratios
YUMC's Return On Assets of 8.19% is fine compared to the rest of the industry. YUMC outperforms 78.03% of its industry peers.
Looking at the Return On Equity, with a value of 15.88%, YUMC is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
YUMC's Return On Invested Capital of 10.78% is fine compared to the rest of the industry. YUMC outperforms 75.76% of its industry peers.
YUMC had an Average Return On Invested Capital over the past 3 years of 8.01%. This is below the industry average of 10.42%.
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 66.67% of its industry peers.
In the last couple of years the Profit Margin of YUMC has remained more or less at the same level.
Looking at the Operating Margin, with a value of 11.18%, YUMC is in the better half of the industry, outperforming 62.12% of the companies in the same industry.
In the last couple of years the Operating Margin of YUMC has remained more or less at the same level.
With a Gross Margin value of 41.58%, YUMC is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
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.
The number of shares outstanding for YUMC has been reduced compared to 1 year ago.
YUMC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for YUMC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.67 indicates that YUMC is not in any danger for bankruptcy at the moment.
YUMC's Altman-Z score of 3.67 is amongst the best of the industry. YUMC outperforms 81.82% of its industry peers.
YUMC has a debt to FCF ratio of 0.09. This is a very positive value and a sign of high solvency as it would only need 0.09 years to pay back of 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 93.18% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that YUMC is not too dependend on debt financing.
YUMC has a better Debt to Equity ratio (0.01) than 87.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 3.67 |
ROIC/WACC1.44
WACC7.47%
2.3 Liquidity
YUMC has a Current Ratio of 1.32. This is a normal value and indicates that YUMC is financially healthy and should not expect problems in meeting its short term obligations.
YUMC's Current ratio of 1.32 is fine compared to the rest of the industry. YUMC outperforms 65.15% of its industry peers.
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.
YUMC has a Quick ratio of 1.15. This is in the better half of the industry: YUMC outperforms 64.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
YUMC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.14%.
Measured over the past 5 years, YUMC shows a small growth in Earnings Per Share. The EPS has been growing by 4.39% on average per year.
Looking at the last year, YUMC shows a small growth in Revenue. The Revenue has grown by 3.29% in the last year.
Measured over the past years, YUMC shows a small growth in Revenue. The Revenue has been growing by 5.19% on average per year.
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
YUMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.24% yearly.
Based on estimates for the next years, YUMC will show a small growth in Revenue. The Revenue will grow by 7.39% on average per year.
EPS Next Y10.29%
EPS Next 2Y12.57%
EPS Next 3Y12.72%
EPS Next 5Y17.24%
Revenue Next Year3.38%
Revenue Next 2Y4.55%
Revenue Next 3Y5.05%
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.
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
Based on the Price/Earnings ratio of 19.10, the valuation of YUMC can be described as rather expensive.
YUMC's Price/Earnings ratio is a bit cheaper when compared to the industry. YUMC is cheaper than 68.94% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, YUMC is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.66, the valuation of YUMC can be described as correct.
69.70% of the companies in the same industry are more expensive than YUMC, based on the Price/Forward Earnings ratio.
YUMC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 15.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YUMC is valued a bit cheaper than 79.55% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, YUMC is valued a bit cheaper than 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.76 | ||
| EV/EBITDA | 7.59 |
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.
A more expensive valuation may be justified as YUMC's earnings are expected to grow with 12.72% in the coming years.
PEG (NY)1.86
PEG (5Y)4.36
EPS Next 2Y12.57%
EPS Next 3Y12.72%
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.
Compared to an average industry Dividend Yield of 7.72, YUMC pays a bit more dividend than its industry peers.
YUMC's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| 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
YUMC pays out 36.39% 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.
DP36.39%
EPS Next 2Y12.57%
EPS Next 3Y12.72%
46.23
-0.37 (-0.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners85.04%
Inst Owner Change-12.7%
Ins Owners0.36%
Ins Owner Change2.08%
Market Cap16.71B
Revenue(TTM)11.57B
Net Income(TTM)904.00M
Analysts84
Price Target58.91 (27.43%)
Short Float %1.57%
Short Ratio4.03
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)-0.18%
PT rev (3m)-0.47%
EPS NQ rev (1m)-4.47%
EPS NQ rev (3m)-6.46%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-0.87%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 15.66 | ||
| P/S | 1.44 | ||
| P/FCF | 17.76 | ||
| P/OCF | 11.08 | ||
| P/B | 2.94 | ||
| P/tB | 4.62 | ||
| EV/EBITDA | 7.59 |
EPS(TTM)2.42
EY5.23%
EPS(NY)2.95
Fwd EY6.39%
FCF(TTM)2.6
FCFY5.63%
OCF(TTM)4.17
OCFY9.03%
SpS32.01
BVpS15.75
TBVpS10.02
PEG (NY)1.86
PEG (5Y)4.36
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 | 3.67 |
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 Y10.29%
EPS Next 2Y12.57%
EPS Next 3Y12.72%
EPS Next 5Y17.24%
Revenue 1Y (TTM)3.29%
Revenue growth 3Y4.68%
Revenue growth 5Y5.19%
Sales Q2Q%4.4%
Revenue Next Year3.38%
Revenue Next 2Y4.55%
Revenue Next 3Y5.05%
Revenue Next 5Y7.39%
EBIT growth 1Y12.05%
EBIT growth 3Y15.62%
EBIT growth 5Y6.49%
EBIT Next Year58.16%
EBIT Next 3Y22.88%
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 10.29% in the next year.
Can you provide the dividend sustainability for YUMC stock?
The dividend rating of YUM CHINA HOLDINGS INC (YUMC) is 5 / 10 and the dividend payout ratio is 36.39%.