YUM CHINA HOLDINGS INC (YUMC) Stock Fundamental Analysis

NYSE:YUMC • US98850P1093

54.61 USD
-0.89 (-1.6%)
At close: Feb 19, 2026
54.61 USD
0 (0%)
After Hours: 2/19/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

YUMC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 126 industry peers in the Hotels, Restaurants & Leisure industry. YUMC is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. YUMC has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • YUMC had positive earnings in the past year.
  • In the past year YUMC had a positive cash flow from operations.
  • YUMC had positive earnings in each of the past 5 years.
  • Each year in the past 5 years YUMC had a positive operating cash flow.
YUMC Yearly Net Income VS EBIT VS OCF VS FCFYUMC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B

1.2 Ratios

  • YUMC has a Return On Assets of 8.62%. This is in the better half of the industry: YUMC outperforms 78.57% of its industry peers.
  • YUMC's Return On Equity of 17.27% is fine compared to the rest of the industry. YUMC outperforms 74.60% of its industry peers.
  • YUMC has a Return On Invested Capital of 11.31%. This is in the better half of the industry: YUMC outperforms 73.81% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for YUMC is in line with the industry average of 10.58%.
  • The last Return On Invested Capital (11.31%) for YUMC is above the 3 year average (9.86%), which is a sign of increasing profitability.
Industry RankSector 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%
YUMC Yearly ROA, ROE, ROICYUMC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • YUMC has a Profit Margin of 7.87%. This is in the better half of the industry: YUMC outperforms 65.87% of its industry peers.
  • YUMC's Profit Margin has declined in the last couple of years.
  • The Operating Margin of YUMC (11.25%) is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of YUMC has grown nicely.
  • YUMC's Gross Margin of 41.32% is on the low side compared to the rest of the industry. YUMC is outperformed by 62.70% 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 RankSector 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%
YUMC Yearly Profit, Operating, Gross MarginsYUMC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

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.
  • The number of shares outstanding for YUMC has been reduced compared to 1 year ago.
  • YUMC has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, YUMC has an improved debt to assets ratio.
YUMC Yearly Shares OutstandingYUMC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
YUMC Yearly Total Debt VS Total AssetsYUMC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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.
  • YUMC has a Altman-Z score of 3.92. This is amongst the best in the industry. YUMC outperforms 84.13% 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.
  • The Debt to FCF ratio of YUMC (0.10) is better than 92.06% of its industry peers.
  • A Debt/Equity ratio of 0.02 indicates that YUMC is not too dependend on debt financing.
  • YUMC has a better Debt to Equity ratio (0.02) than 86.51% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF 0.1
Altman-Z 3.92
ROIC/WACC1.51
WACC7.51%
YUMC Yearly LT Debt VS Equity VS FCFYUMC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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 52.38% of its industry peers.
  • A Quick Ratio of 0.85 indicates that YUMC may have some problems paying its short term obligations.
  • YUMC has a Quick ratio of 0.85. This is comparable to the rest of the industry: YUMC outperforms 44.44% of its industry peers.
Industry RankSector Rank
Current Ratio 1.05
Quick Ratio 0.85
YUMC Yearly Current Assets VS Current LiabilitesYUMC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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.
  • The Revenue has been growing slightly by 4.37% in the past year.
  • Measured over the past years, YUMC shows a small growth in Revenue. The Revenue has been growing by 7.38% on average per year.
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

  • YUMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.44% yearly.
  • The Revenue is expected to grow by 7.39% on average over the next years.
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

  • 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 stable.
YUMC Yearly Revenue VS EstimatesYUMC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5B 10B 15B 20B
YUMC Yearly EPS VS EstimatesYUMC Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • YUMC is valuated rather expensively with a Price/Earnings ratio of 21.67.
  • YUMC's Price/Earnings ratio is a bit cheaper when compared to the industry. YUMC is cheaper than 62.70% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.09. YUMC is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio of 18.82, the valuation of YUMC can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, YUMC is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 27.98. YUMC is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 21.67
Fwd PE 18.82
YUMC Price Earnings VS Forward Price EarningsYUMC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of YUMC indicates a somewhat cheap valuation: YUMC is cheaper than 61.90% of the companies listed 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 64.29% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 23.01
EV/EBITDA 9.82
YUMC Per share dataYUMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
  • A more expensive valuation may be justified as YUMC's earnings are expected to grow with 13.37% in the coming years.
PEG (NY)1.43
PEG (5Y)2.09
EPS Next 2Y13.22%
EPS Next 3Y13.37%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • YUMC has a Yearly Dividend Yield of 2.01%. Purely for dividend investing, there may be better candidates out there.
  • YUMC's Dividend Yield is rather good when compared to the industry average which is at 1.10. YUMC pays more dividend than 80.95% of the companies in the same industry.
  • YUMC's Dividend Yield is comparable with the S&P500 average which is at 1.85.
Industry RankSector 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
YUMC Yearly Dividends per shareYUMC Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

  • YUMC pays out 38.00% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of YUMC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38%
EPS Next 2Y13.22%
EPS Next 3Y13.37%
YUMC Yearly Income VS Free CF VS DividendYUMC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
YUMC Dividend Payout.YUMC Dividend Payout, showing the Payout Ratio.YUMC Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

YUM CHINA HOLDINGS INC

NYSE:YUMC (2/19/2026, 8:04:00 PM)

After market: 54.61 0 (0%)

54.61

-0.89 (-1.6%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-04
Earnings (Next)04-28
Inst Owners76.9%
Inst Owner Change-1.03%
Ins Owners0.37%
Ins Owner Change10.34%
Market Cap19.33B
Revenue(TTM)11.80B
Net Income(TTM)929.00M
Analysts84
Price Target59.52 (8.99%)
Short Float %1.67%
Short Ratio3.97
Dividend
Industry RankSector 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 RankSector Rank
PE 21.67
Fwd PE 18.82
P/S 1.64
P/FCF 23.01
P/OCF 13.19
P/B 3.59
P/tB 5.92
EV/EBITDA 9.82
EPS(TTM)2.52
EY4.61%
EPS(NY)2.9
Fwd EY5.31%
FCF(TTM)2.37
FCFY4.35%
OCF(TTM)4.14
OCFY7.58%
SpS33.32
BVpS15.19
TBVpS9.23
PEG (NY)1.43
PEG (5Y)2.09
Graham Number29.35
Profitability
Industry RankSector 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 RankSector 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%.