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
We assign a fundamental rating of 6 out of 10 to YUMC. YUMC was compared to 131 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 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.
- 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.
- With a decent Return On Equity value of 17.27%, YUMC is doing good in the industry, outperforming 74.81% of the companies in the same industry.
- YUMC has a better Return On Invested Capital (11.31%) 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 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 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
- Looking at the Profit Margin, with a value of 7.87%, YUMC is in the better half of the industry, outperforming 67.94% of the companies in the same industry.
- YUMC's Profit Margin has declined in the last couple of years.
- YUMC's Operating Margin of 11.25% is fine compared to the rest of the industry. YUMC outperforms 61.83% of its industry peers.
- YUMC's Operating Margin has improved in the last couple of years.
- YUMC has a worse Gross Margin (41.32%) than 61.07% of its industry peers.
- YUMC's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so YUMC is still creating some value.
- YUMC has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, YUMC has less shares outstanding
- Compared to 1 year ago, YUMC has an improved debt to assets ratio.
2.2 Solvency
- YUMC has an Altman-Z score of 3.85. This indicates that YUMC is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.85, YUMC belongs to the top of the industry, outperforming 85.50% 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.
- YUMC has a better Debt to FCF ratio (0.10) than 93.13% 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.
- YUMC has a better Debt to Equity ratio (0.02) than 87.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.1 | ||
| Altman-Z | 3.85 |
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.
- The Current ratio of YUMC (1.05) is comparable to the rest of the industry.
- A Quick Ratio of 0.85 indicates that YUMC may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.85, YUMC is in line with its industry, outperforming 48.09% of the companies in the same industry.
| 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.
- The Earnings Per Share has been growing by 10.35% on average over the past years. This is quite good.
- YUMC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.37%.
- 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
- 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.
- YUMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.39% yearly.
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- YUMC is valuated rather expensively with a Price/Earnings ratio of 21.99.
- Based on the Price/Earnings ratio, YUMC is valued a bit cheaper than 64.89% of the companies in the same industry.
- 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.
- Based on the Price/Forward Earnings ratio, YUMC is valued a bit cheaper than the industry average as 63.36% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of YUMC to the average of the S&P500 Index (27.96), we can say YUMC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 19.1 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, YUMC is valued a bit cheaper than the industry average as 67.94% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, YUMC is valued a bit cheaper than 68.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.36 | ||
| EV/EBITDA | 9.45 |
4.3 Compensation for Growth
- The 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)1.45
PEG (5Y)2.12
EPS Next 2Y13.22%
EPS Next 3Y13.37%
5. Dividend
5.1 Amount
- YUMC has a Yearly Dividend Yield of 2.01%.
- Compared to an average industry Dividend Yield of 1.25, YUMC pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.79, 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 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.
- 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%
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)1.61%
EPS NQ rev (3m)26.99%
EPS NY rev (1m)0.31%
EPS NY rev (3m)-1.41%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.38%
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 | 9.45 |
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 | 3.85 |
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%.