YUM CHINA HOLDINGS INC (YUMC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:YUMC • US98850P1093
49.32 USD
-1.19 (-2.36%)
Last: Jan 30, 2026, 03:21 PM
YUMC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. YUMC has an excellent financial health rating, but there are some minor concerns on its profitability. YUMC has a correct valuation and a medium 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.
- In the past 5 years YUMC has always been profitable.
- In the past 5 years YUMC always reported a positive cash flow from operatings.
1.2 Ratios
- YUMC's Return On Assets of 8.19% is fine compared to the rest of the industry. YUMC outperforms 78.03% of its industry peers.
- YUMC's Return On Equity of 15.88% is fine compared to the rest of the industry. YUMC outperforms 73.48% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 10.78%, YUMC is in the better half of 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
- With a decent Profit Margin value of 7.81%, YUMC is doing good in the industry, outperforming 68.18% of the companies in the same industry.
- In the last couple of years the Profit Margin of YUMC has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 11.18%, YUMC is in the better half of the industry, outperforming 62.12% of the companies in the same industry.
- In the last couple of years the Operating Margin of YUMC has remained more or less at the same level.
- YUMC has a Gross Margin of 41.58%. This is in the lower half of the industry: YUMC underperforms 60.61% of its industry peers.
- YUMC's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so YUMC is still creating some value.
- The number of shares outstanding for YUMC has been reduced compared to 1 year ago.
- 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 better Altman-Z score (3.83) than 84.09% of its industry peers.
- The Debt to FCF ratio of YUMC is 0.09, which is an excellent value as it means it would take YUMC, only 0.09 years of fcf income to pay off all of its debts.
- YUMC's Debt to FCF ratio of 0.09 is amongst the best of the industry. YUMC outperforms 93.18% of its industry peers.
- YUMC has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of YUMC (0.01) is better than 87.12% of its industry peers.
| 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.
- With a decent Current ratio value of 1.32, YUMC is doing good in the industry, outperforming 65.15% of the companies in the same industry.
- A Quick Ratio of 1.15 indicates that YUMC should not have too much problems paying its short term obligations.
- The Quick ratio of YUMC (1.15) is better than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.14% over the past year.
- The Earnings Per Share has been growing slightly by 4.39% on average over the past years.
- The Revenue has been growing slightly by 3.29% in the past year.
- The Revenue has been growing slightly by 5.19% on average over the past years.
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
- The Earnings Per Share is expected to grow by 16.58% on average over the next years. This is quite good.
- YUMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.72% yearly.
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
- 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 20.38, YUMC is valued on the expensive side.
- 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.
- When comparing the Price/Earnings ratio of YUMC to the average of the S&P500 Index (28.39), we can say YUMC is valued slightly cheaper.
- The Price/Forward Earnings ratio is 17.02, 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, YUMC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.38 | ||
| Fwd PE | 17.02 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, YUMC is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of YUMC indicates a somewhat cheap valuation: YUMC is cheaper than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.94 | ||
| EV/EBITDA | 8.4 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of YUMC may justify a higher PE ratio.
PEG (NY)2.33
PEG (5Y)4.65
EPS Next 2Y11.54%
EPS Next 3Y11.47%
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.
- Compared to an average industry Dividend Yield of 1.21, YUMC pays a bit more dividend than its industry peers.
- YUMC's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| 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
- 36.39% of the earnings are spent on dividend by YUMC. This is a low number and 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%.