YUM CHINA HOLDINGS INC (YUMC) Fundamental Analysis & Valuation

NYSE:YUMC • US98850P1093

Current stock price

49.59 USD
-0.38 (-0.76%)
At close:
49.59 USD
0 (0%)
After Hours:

This YUMC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. YUMC Profitability Analysis

1.1 Basic Checks

  • YUMC had positive earnings in the past year.
  • In the past year YUMC had a positive cash flow from operations.
  • In the past 5 years YUMC has always been profitable.
  • 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's Return On Assets of 8.62% is amongst the best of the industry. YUMC outperforms 80.16% of its industry peers.
  • YUMC's Return On Equity of 17.27% is fine compared to the rest of the industry. YUMC outperforms 75.40% of its industry peers.
  • YUMC's Return On Invested Capital of 11.31% is fine compared to the rest 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 10.65%.
  • 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

  • The Profit Margin of YUMC (7.87%) is better than 70.63% of its industry peers.
  • In the last couple of years the Profit Margin of YUMC has declined.
  • 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 has a worse Gross Margin (41.32%) than 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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7

2. YUMC Health Analysis

2.1 Basic Checks

  • YUMC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
  • 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 3.70. This indicates that YUMC is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 3.70, YUMC belongs to the best of the industry, outperforming 84.13% of the companies in the same industry.
  • 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 92.86% of its industry peers.
  • A Debt/Equity ratio of 0.02 indicates that YUMC is not too dependend on debt financing.
  • The Debt to Equity ratio of YUMC (0.02) is better than 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF 0.1
Altman-Z 3.7
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.
  • The Current ratio of YUMC (1.05) is comparable to the rest of the industry.
  • 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 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. YUMC Growth Analysis

3.1 Past

  • YUMC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.15%, which is quite good.
  • 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.
  • 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

  • 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 Y18.02%
EPS Next 2Y15.23%
EPS Next 3Y13.76%
EPS Next 5Y17.44%
Revenue Next Year8.22%
Revenue Next 2Y7.07%
Revenue Next 3Y5.94%
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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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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5

4. YUMC Valuation Analysis

4.1 Price/Earnings Ratio

  • YUMC is valuated rather expensively with a Price/Earnings ratio of 19.68.
  • Compared to the rest of the industry, the Price/Earnings ratio of YUMC indicates a somewhat cheap valuation: YUMC is cheaper than 66.67% of the companies listed in the same industry.
  • YUMC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.88.
  • A Price/Forward Earnings ratio of 16.67 indicates a correct valuation of YUMC.
  • Based on the Price/Forward Earnings ratio, YUMC is valued a bit cheaper than 65.87% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, YUMC is valued a bit cheaper.
Industry RankSector Rank
PE 19.68
Fwd PE 16.67
YUMC Price Earnings VS Forward Price EarningsYUMC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, YUMC is valued a bit cheaper than the industry average as 73.02% of the companies are valued more expensively.
  • 63.49% of the companies in the same industry are more expensive than YUMC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 20.85
EV/EBITDA 8.7
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.
  • 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 13.76% in the coming years.
PEG (NY)1.09
PEG (5Y)1.9
EPS Next 2Y15.23%
EPS Next 3Y13.76%

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

5

5. YUMC Dividend Analysis

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 a higher than the industry average which is at 1.09.
  • Compared to an average S&P500 Dividend Yield of 1.90, YUMC has a dividend comparable with the average S&P500 company.
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 paid a dividend for at least 10 years, which is a reliable 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 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • 38.00% of the earnings are spent on dividend by YUMC. This is a low number and sustainable payout ratio.
  • YUMC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38%
EPS Next 2Y15.23%
EPS Next 3Y13.76%
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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YUMC Fundamentals: All Metrics, Ratios and Statistics

YUM CHINA HOLDINGS INC

NYSE:YUMC (3/27/2026, 8:04:00 PM)

After market: 49.59 0 (0%)

49.59

-0.38 (-0.76%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-04
Earnings (Next)04-28
Inst Owners74.67%
Inst Owner Change-2.51%
Ins Owners0.39%
Ins Owner Change4.5%
Market Cap17.51B
Revenue(TTM)11.80B
Net Income(TTM)929.00M
Analysts84
Price Target63.67 (28.39%)
Short Float %1.61%
Short Ratio3.29
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-Date03-04
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)6.91%
PT rev (3m)7.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.48%
EPS NY rev (1m)2.52%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.77%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)2.3%
Valuation
Industry RankSector Rank
PE 19.68
Fwd PE 16.67
P/S 1.48
P/FCF 20.85
P/OCF 11.94
P/B 3.26
P/tB 5.36
EV/EBITDA 8.7
EPS(TTM)2.52
EY5.08%
EPS(NY)2.97
Fwd EY6%
FCF(TTM)2.38
FCFY4.8%
OCF(TTM)4.15
OCFY8.37%
SpS33.41
BVpS15.23
TBVpS9.26
PEG (NY)1.09
PEG (5Y)1.9
Graham Number29.39
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 3.7
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 Y18.02%
EPS Next 2Y15.23%
EPS Next 3Y13.76%
EPS Next 5Y17.44%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y7.23%
Revenue growth 5Y7.38%
Sales Q2Q%15.98%
Revenue Next Year8.22%
Revenue Next 2Y7.07%
Revenue Next 3Y5.94%
Revenue Next 5Y7.39%
EBIT growth 1Y10.49%
EBIT growth 3Y20.68%
EBIT growth 5Y12.67%
EBIT Next Year55.54%
EBIT Next 3Y21.3%
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 Fundamental Analysis 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%.