YUM CHINA HOLDINGS INC (YUMC) Stock Fundamental Analysis
USA - NYSE:YUMC - US98850P1093 - Common Stock
44.8 USD
-0.71 (-1.56%)
45.17 USD
+0.37 (+0.83%)
Overall YUMC gets a fundamental rating of 6 out of 10. We evaluated YUMC against 134 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.
In the past 5 years YUMC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of YUMC (8.37%) is better than 79.85% of its industry peers.
The Return On Equity of YUMC (15.87%) is better than 74.63% of its industry peers.
With a decent Return On Invested Capital value of 10.52%, YUMC is doing good in the industry, outperforming 74.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for YUMC is below the industry average of 10.67%.
The 3 year average ROIC (8.01%) for YUMC is below the current ROIC(10.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.37% | ||
| ROE | 15.87% | ||
| ROIC | 10.52% |
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 has a Profit Margin of 8.04%. This is in the better half of the industry: YUMC outperforms 67.91% 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 11.09%, YUMC is in the better half of the industry, outperforming 61.19% of the companies in the same industry.
YUMC's Operating Margin has been stable in the last couple of years.
YUMC has a worse Gross Margin (41.78%) than 60.45% 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 | 11.09% | ||
| PM (TTM) | 8.04% | ||
| GM | 41.78% |
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.
YUMC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, YUMC has more shares outstanding
Compared to 1 year ago, YUMC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.72 indicates that YUMC is not in any danger for bankruptcy at the moment.
The Altman-Z score of YUMC (3.72) is better than 79.85% of its industry peers.
YUMC has a debt to FCF ratio of 0.06. This is a very positive value and a sign of high solvency as it would only need 0.06 years to pay back of all of its debts.
YUMC has a Debt to FCF ratio of 0.06. This is amongst the best in the industry. YUMC outperforms 94.03% of its industry peers.
YUMC has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
YUMC has a better Debt to Equity ratio (0.01) than 87.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 3.72 |
ROIC/WACC1.41
WACC7.47%
2.3 Liquidity
YUMC has a Current Ratio of 1.39. 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 Current ratio (1.39) than 67.91% of its industry peers.
YUMC has a Quick Ratio of 1.22. 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 Quick ratio of 1.22 is fine compared to the rest of the industry. YUMC outperforms 64.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.71% over the past year.
The Earnings Per Share has been growing slightly by 4.39% on average over the past years.
The Revenue has been growing slightly by 3.53% in the past year.
YUMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.19% yearly.
EPS 1Y (TTM)15.71%
EPS 3Y24.41%
EPS 5Y4.39%
EPS Q2Q%3.64%
Revenue 1Y (TTM)3.53%
Revenue growth 3Y4.68%
Revenue growth 5Y5.19%
Sales Q2Q%4.03%
3.2 Future
The Earnings Per Share is expected to grow by 17.97% 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 7.85% yearly.
EPS Next Y10.96%
EPS Next 2Y12.87%
EPS Next 3Y12.97%
EPS Next 5Y17.97%
Revenue Next Year3.61%
Revenue Next 2Y4.76%
Revenue Next 3Y5.24%
Revenue Next 5Y7.85%
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
A Price/Earnings ratio of 18.44 indicates a rather expensive valuation of YUMC.
Based on the Price/Earnings ratio, YUMC is valued a bit cheaper than the industry average as 71.64% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.91, YUMC is valued a bit cheaper.
YUMC is valuated correctly with a Price/Forward Earnings ratio of 15.09.
Compared to the rest of the industry, the Price/Forward Earnings ratio of YUMC indicates a somewhat cheap valuation: YUMC is cheaper than 73.13% of the companies listed in the same industry.
YUMC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.44 | ||
| Fwd PE | 15.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YUMC is valued cheaper than 80.60% of the companies in the same industry.
YUMC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. YUMC is cheaper than 73.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.81 | ||
| EV/EBITDA | 7.59 |
4.3 Compensation for Growth
YUMC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
YUMC has a very decent profitability rating, which may justify a higher PE ratio.
YUMC's earnings are expected to grow with 12.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.68
PEG (5Y)4.2
EPS Next 2Y12.87%
EPS Next 3Y12.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.22%, YUMC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.83, YUMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, 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
YUMC pays out 32.86% of its income as dividend. This is a sustainable payout ratio.
YUMC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.86%
EPS Next 2Y12.87%
EPS Next 3Y12.97%
44.8
-0.71 (-1.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners85.04%
Inst Owner Change0.02%
Ins Owners0.36%
Ins Owner Change2.19%
Market Cap16.52B
Revenue(TTM)11.43B
Net Income(TTM)919.00M
Analysts84
Price Target59.02 (31.74%)
Short Float %1.74%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Yearly Dividend0.63
Dividend Growth(5Y)5.67%
DP32.86%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.08%
Min EPS beat(2)-1.21%
Max EPS beat(2)-0.95%
EPS beat(4)2
Avg EPS beat(4)2.86%
Min EPS beat(4)-1.21%
Max EPS beat(4)11.84%
EPS beat(8)5
Avg EPS beat(8)8.77%
EPS beat(12)8
Avg EPS beat(12)12.56%
EPS beat(16)9
Avg EPS beat(16)285.44%
Revenue beat(2)0
Avg Revenue beat(2)-3.09%
Min Revenue beat(2)-4.1%
Max Revenue beat(2)-2.07%
Revenue beat(4)0
Avg Revenue beat(4)-4.22%
Min Revenue beat(4)-9.31%
Max Revenue beat(4)-1.38%
Revenue beat(8)1
Avg Revenue beat(8)-4%
Revenue beat(12)2
Avg Revenue beat(12)-3.48%
Revenue beat(16)2
Avg Revenue beat(16)-3.28%
PT rev (1m)-0.24%
PT rev (3m)-0.26%
EPS NQ rev (1m)-4.22%
EPS NQ rev (3m)-3.67%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.44 | ||
| Fwd PE | 15.09 | ||
| P/S | 1.44 | ||
| P/FCF | 19.81 | ||
| P/OCF | 11.47 | ||
| P/B | 2.85 | ||
| P/tB | 4.43 | ||
| EV/EBITDA | 7.59 |
EPS(TTM)2.43
EY5.42%
EPS(NY)2.97
Fwd EY6.63%
FCF(TTM)2.26
FCFY5.05%
OCF(TTM)3.91
OCFY8.72%
SpS31.01
BVpS15.7
TBVpS10.11
PEG (NY)1.68
PEG (5Y)4.2
Graham Number29.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.37% | ||
| ROE | 15.87% | ||
| ROCE | 14.37% | ||
| ROIC | 10.52% | ||
| ROICexc | 13.92% | ||
| ROICexgc | 20.13% | ||
| OM | 11.09% | ||
| PM (TTM) | 8.04% | ||
| GM | 41.78% | ||
| FCFM | 7.29% |
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-Score8
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 131.74% | ||
| Cap/Sales | 5.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.33% | ||
| Profit Quality | 90.75% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 3.72 |
F-Score8
WACC7.47%
ROIC/WACC1.41
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)15.71%
EPS 3Y24.41%
EPS 5Y4.39%
EPS Q2Q%3.64%
EPS Next Y10.96%
EPS Next 2Y12.87%
EPS Next 3Y12.97%
EPS Next 5Y17.97%
Revenue 1Y (TTM)3.53%
Revenue growth 3Y4.68%
Revenue growth 5Y5.19%
Sales Q2Q%4.03%
Revenue Next Year3.61%
Revenue Next 2Y4.76%
Revenue Next 3Y5.24%
Revenue Next 5Y7.85%
EBIT growth 1Y15.48%
EBIT growth 3Y15.62%
EBIT growth 5Y6.49%
EBIT Next Year58.16%
EBIT Next 3Y22.88%
EBIT Next 5Y19.52%
FCF growth 1Y-21.62%
FCF growth 3Y17.33%
FCF growth 5Y-0.98%
OCF growth 1Y-16.67%
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 10.96% 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 32.86%.