YUM CHINA HOLDINGS INC (YUMC) Fundamental Analysis & Valuation

NYSE:YUMC • US98850P1093

Current stock price

48.81 USD
+0.77 (+1.6%)
At close:
48.81 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.
  • YUMC had a positive operating cash flow in the past year.
  • YUMC had positive earnings in each of the past 5 years.
  • YUMC had a positive operating cash flow in each of the past 5 years.
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.
  • The Return On Invested Capital of YUMC (11.31%) is better than 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 10.55%.
  • 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 69.84% of its industry peers.
  • YUMC's Profit Margin has declined in the last couple of years.
  • With a Operating Margin value of 11.25%, YUMC perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
  • YUMC's Operating Margin has improved in the last couple of years.
  • YUMC has a Gross Margin of 41.32%. This is in the lower half of the industry: YUMC underperforms 61.90% 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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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.
  • YUMC has less shares outstanding than it did 5 years ago.
  • YUMC has a better debt/assets ratio than last year.
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 3.62. 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 3.62, YUMC belongs to the top of the industry, outperforming 80.95% 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 Debt to FCF ratio of 0.10. This is amongst the best in the industry. YUMC outperforms 92.86% of its industry peers.
  • A Debt/Equity ratio of 0.02 indicates that YUMC is not too dependend on debt financing.
  • YUMC has a Debt to Equity ratio of 0.02. This is amongst the best in the industry. YUMC outperforms 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF 0.1
Altman-Z 3.62
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 of 1.05. This is comparable to the rest of the industry: YUMC outperforms 56.35% of its industry peers.
  • 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.
  • With a Quick ratio value of 0.85, YUMC perfoms like the industry average, outperforming 45.24% of the companies in the same 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.
  • YUMC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.35% yearly.
  • Looking at the last year, YUMC shows a small growth in Revenue. The Revenue has grown by 4.37% in the last year.
  • Measured over the past years, YUMC shows a small growth in Revenue. The Revenue has been growing by 7.38% on average per year.
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.
  • YUMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.39% yearly.
EPS Next Y17.83%
EPS Next 2Y15.17%
EPS Next 3Y13.71%
EPS Next 5Y17.44%
Revenue Next Year8.22%
Revenue Next 2Y7.03%
Revenue Next 3Y5.98%
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

  • Based on the Price/Earnings ratio of 19.37, the valuation of YUMC can be described as rather expensive.
  • Based on the Price/Earnings ratio, YUMC is valued a bit cheaper than the industry average as 69.84% of the companies are valued more expensively.
  • YUMC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.42, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 16.44, which indicates a correct valuation of YUMC.
  • Based on the Price/Forward Earnings ratio, YUMC is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of YUMC to the average of the S&P500 Index (22.24), we can say YUMC is valued slightly cheaper.
Industry RankSector Rank
PE 19.37
Fwd PE 16.44
YUMC Price Earnings VS Forward Price EarningsYUMC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of YUMC indicates a somewhat cheap valuation: YUMC is cheaper than 78.57% of the companies listed in the same industry.
  • YUMC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. YUMC is cheaper than 69.84% of the companies in the same industry.
Industry RankSector Rank
P/FCF 20.52
EV/EBITDA 8.31
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.
  • 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 13.71% in the coming years.
PEG (NY)1.09
PEG (5Y)1.87
EPS Next 2Y15.17%
EPS Next 3Y13.71%

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6

5. YUMC Dividend Analysis

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 rather good when compared to the industry average which is at 1.04. YUMC pays more dividend than 80.95% of the companies in the same industry.
  • YUMC's Dividend Yield is comparable with the S&P500 average which is at 1.81.
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 been paying a dividend for at least 10 years, so it has a reliable track record.
  • YUMC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)32.22%
Div Incr Years3
Div Non Decr Years5
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.
  • The dividend of YUMC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38%
EPS Next 2Y15.17%
EPS Next 3Y13.71%
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 (4/24/2026, 8:15:29 PM)

After market: 48.81 0 (0%)

48.81

+0.77 (+1.6%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-04
Earnings (Next)04-29
Inst Owners74.69%
Inst Owner Change0.1%
Ins Owners0.39%
Ins Owner Change4.5%
Market Cap17.23B
Revenue(TTM)11.80B
Net Income(TTM)929.00M
Analysts84
Price Target63.54 (30.18%)
Short Float %1.38%
Short Ratio2.52
Dividend
Industry RankSector Rank
Dividend Yield 2.01%
Yearly Dividend0.96
Dividend Growth(5Y)32.22%
DP38%
Div Incr Years3
Div Non Decr Years5
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)-0.15%
PT rev (3m)7.41%
EPS NQ rev (1m)-1.87%
EPS NQ rev (3m)-2.52%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.36%
Valuation
Industry RankSector Rank
PE 19.37
Fwd PE 16.44
P/S 1.46
P/FCF 20.52
P/OCF 11.76
P/B 3.2
P/tB 5.27
EV/EBITDA 8.31
EPS(TTM)2.52
EY5.16%
EPS(NY)2.97
Fwd EY6.08%
FCF(TTM)2.38
FCFY4.87%
OCF(TTM)4.15
OCFY8.51%
SpS33.41
BVpS15.23
TBVpS9.26
PEG (NY)1.09
PEG (5Y)1.87
Graham Number29.3896 (-39.79%)
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 3.62
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 Y17.83%
EPS Next 2Y15.17%
EPS Next 3Y13.71%
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 2Y7.03%
Revenue Next 3Y5.98%
Revenue Next 5Y7.39%
EBIT growth 1Y10.49%
EBIT growth 3Y20.68%
EBIT growth 5Y12.67%
EBIT Next Year55.46%
EBIT Next 3Y21.33%
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.


Can you provide the profitability details for YUM CHINA HOLDINGS INC?

YUM CHINA HOLDINGS INC (YUMC) has a profitability rating of 6 / 10.


What is the expected EPS growth for YUM CHINA HOLDINGS INC (YUMC) stock?

The Earnings per Share (EPS) of YUM CHINA HOLDINGS INC (YUMC) is expected to grow by 17.83% in the next year.


How sustainable is the dividend of YUM CHINA HOLDINGS INC (YUMC) stock?

The dividend rating of YUM CHINA HOLDINGS INC (YUMC) is 6 / 10 and the dividend payout ratio is 38%.