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.

Highlighting Notable Quality Metrics of NYSE:YUMC.

• YUM CHINA HOLDINGS INC has demonstrated significant revenue growth over the past 5 years, with a 5.19% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• YUM CHINA HOLDINGS INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 17.25% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a favorable Debt/Free Cash Flow Ratio of 0.25, 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.
• The Profit Quality (5-year) of YUM CHINA HOLDINGS INC stands at 94.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• YUM CHINA HOLDINGS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 6.49%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, YUM CHINA HOLDINGS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What else is there to say on the fundamentals of NYSE:YUMC?

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Overall YUMC gets a fundamental rating of 6 out of 10. We evaluated YUMC against 135 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 is not valued too expensively and it also shows a decent growth rate.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

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.