YUM CHINA HOLDINGS INC (YUMC) Fundamental Analysis & Valuation

NYSE:YUMC • US98850P1093

52.245 USD
-0.68 (-1.28%)
Last: Mar 12, 2026, 12:12 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

6

Overall YUMC gets a fundamental rating of 6 out of 10. We evaluated YUMC against 126 industry peers in the Hotels, Restaurants & Leisure industry. While YUMC has a great health rating, its profitability is only average at the moment. YUMC has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

6

1. YUMC Profitability Analysis

1.1 Basic Checks

  • In the past year YUMC was profitable.
  • YUMC had a positive operating cash flow in the past year.
  • Each year in the past 5 years YUMC has 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 has a Return On Assets of 8.62%. This is in the better half of the industry: YUMC outperforms 79.37% of its industry peers.
  • YUMC has a Return On Equity of 17.27%. This is in the better half 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 74.60% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for YUMC is in line with the industry average of 10.49%.
  • The 3 year average ROIC (9.86%) for YUMC is below the current ROIC(11.31%), indicating increased profibility in the last year.
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

  • With a decent Profit Margin value of 7.87%, YUMC is doing good in the industry, outperforming 69.84% of the companies in the same industry.
  • YUMC's Profit Margin has declined in the last couple of years.
  • YUMC has a Operating Margin (11.25%) which is in line with its industry peers.
  • In the last couple of years the Operating Margin of YUMC has grown nicely.
  • YUMC has a Gross Margin of 41.32%. This is in the lower half of the industry: YUMC underperforms 62.70% of its industry peers.
  • YUMC's Gross Margin has been stable in the last couple of years.
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. YUMC Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), YUMC is creating some value.
  • YUMC has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for YUMC has been reduced compared to 5 years ago.
  • The debt/assets ratio for YUMC has been reduced compared to a year ago.
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 3.82. This indicates that YUMC is financially healthy and has little risk of bankruptcy at the moment.
  • YUMC has a Altman-Z score of 3.82. 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.
  • YUMC has a Debt to FCF ratio of 0.10. This is amongst the best in the industry. YUMC outperforms 92.06% of its industry peers.
  • YUMC has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
  • 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 3.82
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 has a Current ratio (1.05) which is in line with its industry peers.
  • A Quick Ratio of 0.85 indicates that YUMC may have some problems paying its short term obligations.
  • The Quick ratio of YUMC (0.85) is comparable to the rest of the industry.
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.
  • The Earnings Per Share has been growing by 10.35% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 4.37% in the past year.
  • YUMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.38% yearly.
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

  • The Earnings Per Share is expected to grow by 17.44% on average over the next years. This is quite good.
  • 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

  • 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.
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 20.73.
  • 64.29% of the companies in the same industry are more expensive than YUMC, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of YUMC to the average of the S&P500 Index (26.15), we can say YUMC is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 17.57, which indicates a rather expensive current valuation of YUMC.
  • 62.70% of the companies in the same industry are more expensive than YUMC, based on the Price/Forward Earnings ratio.
  • YUMC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.27.
Industry RankSector Rank
PE 20.73
Fwd PE 17.57
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

  • 70.63% of the companies in the same industry are more expensive than YUMC, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, YUMC is valued a bit cheaper than the industry average as 63.49% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 21.96
EV/EBITDA 9.28
YUMC Per share dataYUMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The 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.
  • YUMC's earnings are expected to grow with 13.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)2
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%.
  • YUMC's Dividend Yield is a higher than the industry average which is at 1.11.
  • Compared to an average S&P500 Dividend Yield of 1.82, YUMC has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.01%

5.2 History

  • On average, the dividend of YUMC grows each year by 32.22%, which is quite nice.
  • 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

  • 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 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 (3/12/2026, 12:12:07 PM)

52.245

-0.68 (-1.28%)

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 Cap18.45B
Revenue(TTM)11.80B
Net Income(TTM)929.00M
Analysts84
Price Target63.63 (21.79%)
Short Float %1.58%
Short Ratio3.75
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)-0.66%
EPS NQ rev (3m)0.48%
EPS NY rev (1m)2.52%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)1.2%
Revenue NQ rev (3m)2.77%
Revenue NY rev (1m)2.28%
Revenue NY rev (3m)2.3%
Valuation
Industry RankSector Rank
PE 20.73
Fwd PE 17.57
P/S 1.56
P/FCF 21.96
P/OCF 12.58
P/B 3.43
P/tB 5.64
EV/EBITDA 9.28
EPS(TTM)2.52
EY4.82%
EPS(NY)2.97
Fwd EY5.69%
FCF(TTM)2.38
FCFY4.55%
OCF(TTM)4.15
OCFY7.95%
SpS33.41
BVpS15.23
TBVpS9.26
PEG (NY)1.15
PEG (5Y)2
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 3.82
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 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%.