YUM CHINA HOLDINGS INC (YUMC) Stock Fundamental Analysis
USA - NYSE:YUMC - US98850P1093 - Common Stock
46.17 USD
-0.2 (-0.43%)
46.17 USD
0 (0%)
YUMC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. YUMC has an excellent financial health rating, but there are some minor concerns on its profitability. YUMC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year YUMC was profitable.
In the past year YUMC had a positive cash flow from operations.
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 has a Return On Assets of 8.19%. This is amongst the best in the industry. YUMC outperforms 80.30% of its industry peers.
YUMC has a better Return On Equity (15.88%) than 72.73% of its industry peers.
The Return On Invested Capital of YUMC (10.78%) is better than 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for YUMC is below the industry average of 10.74%.
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
Looking at the Profit Margin, with a value of 7.81%, YUMC is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
In the last couple of years the Profit Margin of YUMC has remained more or less at the same level.
YUMC's Operating Margin of 11.18% is fine compared to the rest of the industry. YUMC outperforms 61.36% 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's Gross Margin of 41.58% is on the low side compared to the rest of the industry. YUMC is outperformed by 61.36% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so YUMC is still creating some value.
The number of shares outstanding for YUMC has been reduced compared to 1 year ago.
The number of shares outstanding for YUMC has been increased compared to 5 years ago.
YUMC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.70 indicates that YUMC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.70, YUMC belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
The Debt to FCF ratio of YUMC is 0.08, which is an excellent value as it means it would take YUMC, only 0.08 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.08, YUMC belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
YUMC has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
YUMC's Debt to Equity ratio of 0.01 is amongst the best of the industry. YUMC outperforms 87.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | 3.7 |
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 63.64% 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.
With a decent Quick ratio value of 1.15, YUMC is doing good in the industry, outperforming 62.88% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing slightly by 4.39% on average over the past years.
The Revenue has been growing slightly by 3.29% in the past 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
Based on estimates for the next years, YUMC will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.97% on average per year.
The Revenue is expected to grow by 7.85% on average over the next years.
EPS Next Y10.29%
EPS Next 2Y12.57%
EPS Next 3Y12.72%
EPS Next 5Y17.97%
Revenue Next Year3.38%
Revenue Next 2Y4.55%
Revenue Next 3Y5.05%
Revenue Next 5Y7.85%
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.
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
With a Price/Earnings ratio of 19.08, YUMC is valued on the expensive side.
Based on the Price/Earnings ratio, YUMC is valued a bit cheaper than 68.94% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, YUMC is valued a bit cheaper.
YUMC is valuated correctly with a Price/Forward Earnings ratio of 15.64.
YUMC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. YUMC is cheaper than 69.70% of the companies in the same industry.
YUMC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.08 | ||
| Fwd PE | 15.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YUMC is valued a bit cheaper than the industry average as 78.03% of the companies are valued more expensively.
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 | 18.09 | ||
| EV/EBITDA | 7.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of YUMC may justify a higher PE ratio.
YUMC's earnings are expected to grow with 12.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.85
PEG (5Y)4.35
EPS Next 2Y12.57%
EPS Next 3Y12.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.22%, YUMC has a reasonable but not impressive dividend return.
YUMC's Dividend Yield is a higher than the industry average which is at 4.57.
YUMC's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| 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.
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%
46.17
-0.2 (-0.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners85.04%
Inst Owner Change-0.42%
Ins Owners0.36%
Ins Owner Change2.08%
Market Cap17.02B
Revenue(TTM)11.57B
Net Income(TTM)904.00M
Analysts84
Price Target59.03 (27.85%)
Short Float %1.75%
Short Ratio3.75
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)0.02%
PT rev (3m)-0.24%
EPS NQ rev (1m)0.9%
EPS NQ rev (3m)-4.64%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.08 | ||
| Fwd PE | 15.64 | ||
| P/S | 1.47 | ||
| P/FCF | 18.09 | ||
| P/OCF | 11.29 | ||
| P/B | 2.99 | ||
| P/tB | 4.7 | ||
| EV/EBITDA | 7.73 |
EPS(TTM)2.42
EY5.24%
EPS(NY)2.95
Fwd EY6.39%
FCF(TTM)2.55
FCFY5.53%
OCF(TTM)4.09
OCFY8.86%
SpS31.38
BVpS15.44
TBVpS9.82
PEG (NY)1.85
PEG (5Y)4.35
Graham Number28.99
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 | 0.08 | ||
| 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 | 3.7 |
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 5Y17.97%
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 5Y7.85%
EBIT growth 1Y12.05%
EBIT growth 3Y15.62%
EBIT growth 5Y6.49%
EBIT Next Year58.16%
EBIT Next 3Y22.88%
EBIT Next 5Y19.52%
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%.