YUM CHINA HOLDINGS INC (YUMC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:YUMC • US98850P1093
49.42 USD
-1.09 (-2.16%)
At close: Jan 30, 2026
49.42 USD
0 (0%)
After Hours: 1/30/2026, 8:25:22 PM
We assign a fundamental rating of 6 out of 10 to YUMC. YUMC was compared to 132 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.
- Each year in the past 5 years YUMC has been profitable.
- YUMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- YUMC has a better Return On Assets (8.19%) than 78.03% of its industry peers.
- The Return On Equity of YUMC (15.88%) is better than 73.48% of its industry peers.
- With a decent Return On Invested Capital value of 10.78%, YUMC is doing good in the industry, outperforming 75.76% of the companies in the same industry.
- YUMC had an Average Return On Invested Capital over the past 3 years of 8.01%. This is below the industry average of 10.37%.
- The 3 year average ROIC (8.01%) for YUMC is below the current ROIC(10.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | 15.88% | ||
| ROIC | 10.78% |
ROA(3y)6.27%
ROA(5y)6.7%
ROE(3y)11.88%
ROE(5y)12.46%
ROIC(3y)8.01%
ROIC(5y)7.07%
1.3 Margins
- Looking at the Profit Margin, with a value of 7.81%, YUMC is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
- YUMC's Profit Margin has been stable in the last couple of years.
- The Operating Margin of YUMC (11.18%) is better than 62.12% of its industry peers.
- YUMC's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 41.58%, YUMC is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
- 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 | 11.18% | ||
| PM (TTM) | 7.81% | ||
| GM | 41.58% |
OM growth 3Y10.45%
OM growth 5Y1.23%
PM growth 3Y-7.08%
PM growth 5Y-0.16%
GM growth 3Y-0.12%
GM growth 5Y-0.93%
2. Health
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 more 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 3.83. This indicates that YUMC is financially healthy and has little risk of bankruptcy at the moment.
- YUMC has a Altman-Z score of 3.83. This is amongst the best in the industry. YUMC outperforms 84.09% of its industry peers.
- YUMC has a debt to FCF ratio of 0.09. This is a very positive value and a sign of high solvency as it would only need 0.09 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.09, YUMC belongs to the top of the industry, outperforming 93.18% of the companies in the same industry.
- A Debt/Equity ratio of 0.01 indicates that YUMC is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.01, YUMC belongs to the top of the industry, outperforming 87.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 3.83 |
ROIC/WACC1.44
WACC7.47%
2.3 Liquidity
- YUMC has a Current Ratio of 1.32. 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 of 1.32. This is in the better half of the industry: YUMC outperforms 65.15% of its industry peers.
- YUMC has a Quick Ratio of 1.15. 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 Quick ratio of 1.15 is fine compared to the rest of the industry. YUMC outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
- YUMC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.14%.
- YUMC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.39% yearly.
- Looking at the last year, YUMC shows a small growth in Revenue. The Revenue has grown by 3.29% in the last year.
- Measured over the past years, YUMC shows a small growth in Revenue. The Revenue has been growing by 5.19% on average per year.
EPS 1Y (TTM)6.14%
EPS 3Y24.41%
EPS 5Y4.39%
EPS Q2Q%-1.3%
Revenue 1Y (TTM)3.29%
Revenue growth 3Y4.68%
Revenue growth 5Y5.19%
Sales Q2Q%4.4%
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 16.58% on average per year.
- The Revenue is expected to grow by 6.72% on average over the next years.
EPS Next Y8.75%
EPS Next 2Y11.54%
EPS Next 3Y11.47%
EPS Next 5Y16.58%
Revenue Next Year2.96%
Revenue Next 2Y4.35%
Revenue Next 3Y4.77%
Revenue Next 5Y6.72%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 20.42, which indicates a rather expensive current valuation of YUMC.
- YUMC's Price/Earnings ratio is a bit cheaper when compared to the industry. YUMC is cheaper than 66.67% of the companies in the same industry.
- YUMC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.30.
- The Price/Forward Earnings ratio is 17.05, which indicates a rather expensive current valuation of YUMC.
- Based on the Price/Forward Earnings ratio, YUMC is valued a bit cheaper than 68.18% of the companies in the same industry.
- YUMC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 17.05 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, YUMC is valued a bit cheaper than 77.27% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, YUMC is valued a bit cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.98 | ||
| EV/EBITDA | 8.4 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates YUMC does not grow enough to justify the current Price/Earnings ratio.
- YUMC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.33
PEG (5Y)4.66
EPS Next 2Y11.54%
EPS Next 3Y11.47%
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 1.25.
- Compared to an average S&P500 Dividend Yield of 1.83, YUMC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
- The dividend of YUMC has a limited annual growth rate of 5.67%.
- 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)5.67%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
- YUMC pays out 36.39% of its income as dividend. This is a sustainable payout ratio.
- YUMC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.39%
EPS Next 2Y11.54%
EPS Next 3Y11.47%
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 4 / 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 8 / 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 36.39%.