Exploring NYSE:YUMC's quality characteristics.

In this article we will dive into YUM CHINA HOLDINGS INC (NYSE:YUMC) as a possible candidate for quality investing. Investors should always do their own research, but we noticed YUM CHINA HOLDINGS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NYSE:YUMC highlighted

• The 5-year revenue growth of YUM CHINA HOLDINGS INC has been remarkable, with 5.46% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• The ROIC excluding cash and goodwill of YUM CHINA HOLDINGS INC stands at 16.84%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a favorable Debt/Free Cash Flow Ratio of 0.56, YUM CHINA HOLDINGS INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• With a robust Profit Quality (5-year) ratio of 99.36%, YUM CHINA HOLDINGS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• YUM CHINA HOLDINGS INC has experienced impressive EBIT growth over the past 5 years, with 6.46% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• The EBIT 5-year growth of YUM CHINA HOLDINGS INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

A complete fundamental analysis of NYSE:YUMC

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall YUMC gets a fundamental rating of 6 out of 10. We evaluated YUMC against 134 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.

For an up to date full fundamental analysis you can check the fundamental report of YUMC

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.