YUM CHINA HOLDINGS INC (YUMC) Stock Fundamental Analysis
NYSE:YUMC • US98850P1093
55.42 USD
+1.77 (+3.3%)
At close: Feb 13, 2026
55.42 USD
0 (0%)
After Hours: 2/13/2026, 8:04:00 PM
Overall YUMC gets a fundamental rating of 6 out of 10. We evaluated YUMC against 131 industry peers in the Hotels, Restaurants & Leisure industry. While YUMC has a great health rating, its profitability is only average at the moment. YUMC is not valued too expensively and it also shows a decent 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.
- In the past 5 years YUMC has always been profitable.
- Each year in the past 5 years YUMC had a positive operating cash flow.
1.2 Ratios
- YUMC has a Return On Assets of 8.62%. This is in the better half of the industry: YUMC outperforms 78.63% of its industry peers.
- YUMC has a Return On Equity of 17.27%. This is in the better half of the industry: YUMC outperforms 74.81% of its industry peers.
- The Return On Invested Capital of YUMC (11.31%) is better than 75.57% of its industry peers.
- YUMC had an Average Return On Invested Capital over the past 3 years of 9.86%. This is in line with the industry average of 10.42%.
- The 3 year average ROIC (9.86%) for YUMC is below the current ROIC(11.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 17.27% | ||
| ROIC | 11.31% |
ROA(3y)7.89%
ROA(5y)6.98%
ROE(3y)15.36%
ROE(5y)13.39%
ROIC(3y)9.86%
ROIC(5y)8.1%
1.3 Margins
- YUMC has a Profit Margin of 7.87%. This is in the better half of the industry: YUMC outperforms 67.94% of its industry peers.
- YUMC's Profit Margin has declined in the last couple of years.
- YUMC has a better Operating Margin (11.25%) than 61.83% of its industry peers.
- YUMC's Operating Margin has improved in the last couple of years.
- YUMC's Gross Margin of 41.32% is on the low side compared to the rest of the industry. YUMC is outperformed by 61.07% 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 | 11.25% | ||
| PM (TTM) | 7.87% | ||
| GM | 41.32% |
OM growth 3Y12.55%
OM growth 5Y4.92%
PM growth 3Y19.46%
PM growth 5Y-3.66%
GM growth 3Y-0.92%
GM growth 5Y-0.82%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), YUMC is creating some value.
- Compared to 1 year ago, YUMC has less shares outstanding
- YUMC has less shares outstanding than it did 5 years ago.
- YUMC has a better debt/assets ratio than last year.
2.2 Solvency
- YUMC has an Altman-Z score of 3.92. This indicates that YUMC is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of YUMC (3.92) is better than 85.50% of its industry peers.
- YUMC has a debt to FCF ratio of 0.10. This is a very positive value and a sign of high solvency as it would only need 0.10 years to pay back of all of its debts.
- YUMC has a Debt to FCF ratio of 0.10. This is amongst the best in the industry. YUMC outperforms 93.13% of its industry peers.
- A Debt/Equity ratio of 0.02 indicates that YUMC is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.02, YUMC belongs to the top of the industry, outperforming 87.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.1 | ||
| Altman-Z | 3.92 |
ROIC/WACC1.51
WACC7.51%
2.3 Liquidity
- YUMC has a Current Ratio of 1.05. 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 1.05 is in line compared to the rest of the industry. YUMC outperforms 54.20% of its industry peers.
- YUMC has a Quick Ratio of 1.05. This is a bad value and indicates that YUMC is not financially healthy enough and could expect problems in meeting its short term obligations.
- YUMC has a Quick ratio (0.85) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.15% over the past year.
- YUMC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.35% yearly.
- YUMC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.37%.
- The Revenue has been growing slightly by 7.38% on average over the past years.
EPS 1Y (TTM)8.15%
EPS 3Y33.89%
EPS 5Y10.35%
EPS Q2Q%33.33%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y7.23%
Revenue growth 5Y7.38%
Sales Q2Q%15.98%
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 17.44% on average per year.
- Based on estimates for the next years, YUMC will show a small growth in Revenue. The Revenue will grow by 7.39% on average per year.
EPS Next Y15.12%
EPS Next 2Y13.22%
EPS Next 3Y13.37%
EPS Next 5Y17.44%
Revenue Next Year5.8%
Revenue Next 2Y5.75%
Revenue Next 3Y6.52%
Revenue Next 5Y7.39%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 21.99 indicates a rather expensive valuation of YUMC.
- Based on the Price/Earnings ratio, YUMC is valued a bit cheaper than the industry average as 64.89% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of YUMC to the average of the S&P500 Index (27.97), we can say YUMC is valued slightly cheaper.
- YUMC is valuated rather expensively with a Price/Forward Earnings ratio of 19.10.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of YUMC indicates a somewhat cheap valuation: YUMC is cheaper than 63.36% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 27.96. YUMC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 19.1 |
4.2 Price Multiples
- 67.94% of the companies in the same industry are more expensive than YUMC, based on the Enterprise Value to EBITDA ratio.
- YUMC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. YUMC is cheaper than 68.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.36 | ||
| EV/EBITDA | 9.81 |
4.3 Compensation for Growth
- YUMC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of YUMC may justify a higher PE ratio.
- A more expensive valuation may be justified as YUMC's earnings are expected to grow with 13.37% in the coming years.
PEG (NY)1.45
PEG (5Y)2.12
EPS Next 2Y13.22%
EPS Next 3Y13.37%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.01%, YUMC has a reasonable but not impressive dividend return.
- YUMC's Dividend Yield is a higher than the industry average which is at 1.27.
- YUMC's Dividend Yield is comparable with the S&P500 average which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
- The dividend of YUMC is nicely growing with an annual growth rate of 32.22%!
- 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)32.22%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
- YUMC pays out 38.00% of its income as dividend. This is a sustainable payout ratio.
- YUMC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38%
EPS Next 2Y13.22%
EPS Next 3Y13.37%
55.42
+1.77 (+3.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-04 2026-02-04/bmo
Earnings (Next)04-28 2026-04-28/amc
Inst Owners76.9%
Inst Owner Change-2.09%
Ins Owners0.37%
Ins Owner Change3.81%
Market Cap19.62B
Revenue(TTM)11.80B
Net Income(TTM)929.00M
Analysts84
Price Target59.52 (7.4%)
Short Float %1.63%
Short Ratio4.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend0.96
Dividend Growth(5Y)32.22%
DP38%
Div Incr Years2
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.3%
Min EPS beat(2)0.39%
Max EPS beat(2)10.21%
EPS beat(4)2
Avg EPS beat(4)2.11%
Min EPS beat(4)-1.21%
Max EPS beat(4)10.21%
EPS beat(8)6
Avg EPS beat(8)5.43%
EPS beat(12)9
Avg EPS beat(12)10.72%
EPS beat(16)11
Avg EPS beat(16)293.3%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-1.35%
Max Revenue beat(2)1.73%
Revenue beat(4)1
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-4.1%
Max Revenue beat(4)1.73%
Revenue beat(8)1
Avg Revenue beat(8)-3.33%
Revenue beat(12)3
Avg Revenue beat(12)-2.62%
Revenue beat(16)3
Avg Revenue beat(16)-2.87%
PT rev (1m)0.83%
PT rev (3m)0.83%
EPS NQ rev (1m)-0.66%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)-0.48%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)1.2%
Revenue NQ rev (3m)4.17%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 19.1 | ||
| P/S | 1.66 | ||
| P/FCF | 23.36 | ||
| P/OCF | 13.38 | ||
| P/B | 3.65 | ||
| P/tB | 6 | ||
| EV/EBITDA | 9.81 |
EPS(TTM)2.52
EY4.55%
EPS(NY)2.9
Fwd EY5.23%
FCF(TTM)2.37
FCFY4.28%
OCF(TTM)4.14
OCFY7.47%
SpS33.32
BVpS15.19
TBVpS9.23
PEG (NY)1.45
PEG (5Y)2.12
Graham Number29.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 17.27% | ||
| ROCE | 15.54% | ||
| ROIC | 11.31% | ||
| ROICexc | 13.49% | ||
| ROICexgc | 19.11% | ||
| OM | 11.25% | ||
| PM (TTM) | 7.87% | ||
| GM | 41.32% | ||
| FCFM | 7.12% |
ROA(3y)7.89%
ROA(5y)6.98%
ROE(3y)15.36%
ROE(5y)13.39%
ROIC(3y)9.86%
ROIC(5y)8.1%
ROICexc(3y)12.45%
ROICexc(5y)10.83%
ROICexgc(3y)17.53%
ROICexgc(5y)15.82%
ROCE(3y)13.65%
ROCE(5y)11.19%
ROICexgc growth 3Y13.67%
ROICexgc growth 5Y1.59%
ROICexc growth 3Y16.78%
ROICexc growth 5Y2.81%
OM growth 3Y12.55%
OM growth 5Y4.92%
PM growth 3Y19.46%
PM growth 5Y-3.66%
GM growth 3Y-0.92%
GM growth 5Y-0.82%
F-Score6
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.1 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 139.73% | ||
| Cap/Sales | 5.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.59% | ||
| Profit Quality | 90.42% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 3.92 |
F-Score6
WACC7.51%
ROIC/WACC1.51
Cap/Depr(3y)148.19%
Cap/Depr(5y)138.18%
Cap/Sales(3y)6%
Cap/Sales(5y)6.42%
Profit Quality(3y)87.02%
Profit Quality(5y)94.35%
High Growth Momentum
Growth
EPS 1Y (TTM)8.15%
EPS 3Y33.89%
EPS 5Y10.35%
EPS Q2Q%33.33%
EPS Next Y15.12%
EPS Next 2Y13.22%
EPS Next 3Y13.37%
EPS Next 5Y17.44%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y7.23%
Revenue growth 5Y7.38%
Sales Q2Q%15.98%
Revenue Next Year5.8%
Revenue Next 2Y5.75%
Revenue Next 3Y6.52%
Revenue Next 5Y7.39%
EBIT growth 1Y10.49%
EBIT growth 3Y20.68%
EBIT growth 5Y12.67%
EBIT Next Year52.31%
EBIT Next 3Y20.84%
EBIT Next 5Y16.45%
FCF growth 1Y17.65%
FCF growth 3Y4.6%
FCF growth 5Y3.86%
OCF growth 1Y3.31%
OCF growth 3Y1.23%
OCF growth 5Y5.65%
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.
Can you provide the valuation status for YUM CHINA HOLDINGS INC?
ChartMill assigns a valuation rating of 5 / 10 to YUM CHINA HOLDINGS INC (YUMC). This can be considered as Fairly Valued.
How profitable is YUM CHINA HOLDINGS INC (YUMC) stock?
YUM CHINA HOLDINGS INC (YUMC) has a profitability rating of 6 / 10.
How financially healthy is YUM CHINA HOLDINGS INC?
The financial health rating of YUM CHINA HOLDINGS INC (YUMC) is 7 / 10.
Is the dividend of YUM CHINA HOLDINGS INC sustainable?
The dividend rating of YUM CHINA HOLDINGS INC (YUMC) is 5 / 10 and the dividend payout ratio is 38%.