YUM CHINA HOLDINGS INC (YUMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YUMC - US98850P1093 - Common Stock
48.14 USD
-0.14 (-0.29%)
48.13 USD
-0.01 (-0.02%)
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 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.
Each year in the past 5 years YUMC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.19%, YUMC is in the better half of the industry, outperforming 78.03% of the companies in the same industry.
YUMC has a Return On Equity of 15.88%. This is in the better half of the industry: YUMC outperforms 72.73% of its industry peers.
The Return On Invested Capital of YUMC (10.78%) is better than 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 3 year average ROIC (8.01%) for YUMC is below the current ROIC(10.78%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 7.81%, YUMC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
YUMC's Profit Margin has been stable in the last couple of years.
YUMC's Operating Margin of 11.18% is fine compared to the rest of the industry. YUMC outperforms 62.12% of its industry peers.
In the last couple of years the Operating Margin of YUMC has remained more or less at the same level.
Looking at the Gross Margin, with a value of 41.58%, YUMC is doing worse than 60.61% of the companies in the same industry.
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 | 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.
YUMC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, YUMC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.77 indicates that YUMC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.77, YUMC belongs to the best of the industry, outperforming 84.09% 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.
With an excellent Debt to FCF ratio value of 0.09, YUMC belongs to the best 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'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 | 0.09 | ||
| 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.
The Current ratio of YUMC (1.32) is better than 65.15% of its industry peers.
A Quick Ratio of 1.15 indicates that YUMC should not have too much problems paying its short term obligations.
The Quick ratio of YUMC (1.15) is better than 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.
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
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.
Based on estimates for the next years, YUMC will show a small growth in Revenue. The Revenue will grow by 7.85% on average per year.
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.
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 19.89.
68.18% of the companies in the same industry are more expensive than YUMC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.31, YUMC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.31, YUMC is valued correctly.
YUMC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. YUMC is cheaper than 66.67% 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 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 16.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YUMC is valued a bit cheaper than 77.27% 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 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.86 | ||
| EV/EBITDA | 8.14 |
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.
YUMC has a very decent profitability rating, which 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)1.93
PEG (5Y)4.54
EPS Next 2Y12.57%
EPS Next 3Y12.72%
5. Dividend
5.1 Amount
YUMC has a Yearly Dividend Yield of 2.22%.
Compared to an average industry Dividend Yield of 6.38, YUMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, YUMC has a dividend comparable with the average S&P500 company.
| 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%
48.14
-0.14 (-0.29%)
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 Cap17.75B
Revenue(TTM)11.57B
Net Income(TTM)904.00M
Analysts84
Price Target58.91 (22.37%)
Short Float %1.49%
Short Ratio3.76
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)-3.93%
EPS NQ rev (3m)-5.93%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-0.87%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 16.31 | ||
| P/S | 1.53 | ||
| P/FCF | 18.86 | ||
| P/OCF | 11.77 | ||
| P/B | 3.12 | ||
| P/tB | 4.9 | ||
| EV/EBITDA | 8.14 |
EPS(TTM)2.42
EY5.03%
EPS(NY)2.95
Fwd EY6.13%
FCF(TTM)2.55
FCFY5.3%
OCF(TTM)4.09
OCFY8.5%
SpS31.38
BVpS15.44
TBVpS9.82
PEG (NY)1.93
PEG (5Y)4.54
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 | 0.09 | ||
| 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 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%.