YUM CHINA HOLDINGS INC (YUMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YUMC - US98850P1093 - Common Stock
47.2 USD
-0.35 (-0.74%)
Taking everything into account, YUMC scores 6 out of 10 in our fundamental rating. YUMC was compared to 133 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.
- In the past year YUMC had a positive cash flow from operations.
- 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 has a better Return On Assets (8.19%) than 78.20% of its industry peers.
- YUMC's Return On Equity of 15.88% is fine compared to the rest of the industry. YUMC outperforms 72.93% 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 75.94% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for YUMC is below the industry average of 10.34%.
- The last Return On Invested Capital (10.78%) for YUMC is above the 3 year average (8.01%), which is a sign of increasing profitability.
| 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
- YUMC's Profit Margin of 7.81% is fine compared to the rest of the industry. YUMC outperforms 68.42% of its industry peers.
- In the last couple of years the Profit Margin of YUMC has remained more or less at the same level.
- YUMC's Operating Margin of 11.18% is fine compared to the rest of the industry. YUMC outperforms 62.41% of its industry peers.
- YUMC's Operating Margin has been stable in the last couple of years.
- YUMC has a worse Gross Margin (41.58%) than 60.90% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), YUMC 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.
- The debt/assets ratio for YUMC has been reduced compared to a year ago.
2.2 Solvency
- YUMC has an Altman-Z score of 3.71. This indicates that YUMC is financially healthy and has little risk of bankruptcy at the moment.
- YUMC has a better Altman-Z score (3.71) than 82.71% 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.
- The Debt to FCF ratio of YUMC (0.09) is better than 93.23% 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 87.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 3.71 |
ROIC/WACC1.44
WACC7.47%
2.3 Liquidity
- A Current Ratio of 1.32 indicates that YUMC should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.32, YUMC is in the better half of the industry, outperforming 65.41% of the companies in the same industry.
- 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 has a Quick ratio of 1.15. This is in the better half of the industry: YUMC outperforms 63.91% 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.
- Measured over the past 5 years, YUMC shows a small growth in Earnings Per Share. The EPS has been growing by 4.39% on average per year.
- Looking at the last year, YUMC shows a small growth in Revenue. The Revenue has grown by 3.29% in the last 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.
- Based on estimates for the next years, YUMC will show a small growth in Revenue. The Revenue will grow by 6.72% on average per year.
EPS Next Y8.4%
EPS Next 2Y11.85%
EPS Next 3Y11.82%
EPS Next 5Y16.58%
Revenue Next Year2.94%
Revenue Next 2Y4.34%
Revenue Next 3Y4.75%
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
- A Price/Earnings ratio of 19.50 indicates a rather expensive valuation of YUMC.
- Compared to the rest of the industry, the Price/Earnings ratio of YUMC indicates a somewhat cheap valuation: YUMC is cheaper than 71.43% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of YUMC to the average of the S&P500 Index (27.38), we can say YUMC is valued slightly cheaper.
- A Price/Forward Earnings ratio of 16.19 indicates a correct valuation of YUMC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of YUMC indicates a somewhat cheap valuation: YUMC is cheaper than 71.43% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. YUMC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 16.19 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of YUMC indicates a rather cheap valuation: YUMC is cheaper than 83.46% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of YUMC indicates a somewhat cheap valuation: YUMC is cheaper than 76.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.13 | ||
| EV/EBITDA | 7.79 |
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)2.32
PEG (5Y)4.45
EPS Next 2Y11.85%
EPS Next 3Y11.82%
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 1.19.
- YUMC's Dividend Yield is comparable with the S&P500 average which is at 1.84.
| 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 2Y11.85%
EPS Next 3Y11.82%
NYSE:YUMC (1/20/2026, 9:30:01 AM)
47.2
-0.35 (-0.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-04 2026-02-04/amc
Inst Owners76.9%
Inst Owner Change0.01%
Ins Owners0.37%
Ins Owner Change3.96%
Market Cap17.06B
Revenue(TTM)11.57B
Net Income(TTM)904.00M
Analysts84
Price Target59.15 (25.32%)
Short Float %1.63%
Short Ratio4.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend0.63
Dividend Growth(5Y)5.67%
DP36.39%
Div Incr Years2
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.28%
Min EPS beat(2)-0.95%
Max EPS beat(2)0.39%
EPS beat(4)2
Avg EPS beat(4)0%
Min EPS beat(4)-1.21%
Max EPS beat(4)1.77%
EPS beat(8)6
Avg EPS beat(8)10.47%
EPS beat(12)8
Avg EPS beat(12)7.88%
EPS beat(16)10
Avg EPS beat(16)287.31%
Revenue beat(2)0
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)-1.35%
Revenue beat(4)0
Avg Revenue beat(4)-4.21%
Min Revenue beat(4)-9.31%
Max Revenue beat(4)-1.35%
Revenue beat(8)1
Avg Revenue beat(8)-3.34%
Revenue beat(12)2
Avg Revenue beat(12)-3.41%
Revenue beat(16)2
Avg Revenue beat(16)-3.34%
PT rev (1m)0.28%
PT rev (3m)0.23%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)-5.32%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-2.31%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 16.19 | ||
| P/S | 1.47 | ||
| P/FCF | 18.13 | ||
| P/OCF | 11.31 | ||
| P/B | 3 | ||
| P/tB | 4.71 | ||
| EV/EBITDA | 7.79 |
EPS(TTM)2.42
EY5.13%
EPS(NY)2.92
Fwd EY6.18%
FCF(TTM)2.6
FCFY5.52%
OCF(TTM)4.17
OCFY8.84%
SpS32.01
BVpS15.75
TBVpS10.02
PEG (NY)2.32
PEG (5Y)4.45
Graham Number29.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | 15.88% | ||
| ROCE | 14.78% | ||
| ROIC | 10.78% | ||
| ROICexc | 14.26% | ||
| ROICexgc | 20.74% | ||
| OM | 11.18% | ||
| PM (TTM) | 7.81% | ||
| GM | 41.58% | ||
| FCFM | 8.13% |
ROA(3y)6.27%
ROA(5y)6.7%
ROE(3y)11.88%
ROE(5y)12.46%
ROIC(3y)8.01%
ROIC(5y)7.07%
ROICexc(3y)10.81%
ROICexc(5y)10.5%
ROICexgc(3y)15.53%
ROICexgc(5y)15.57%
ROCE(3y)11.07%
ROCE(5y)9.74%
ROICexgc growth 3Y8.41%
ROICexgc growth 5Y-4.9%
ROICexc growth 3Y14.1%
ROICexc growth 5Y-7.31%
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%
F-Score7
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 124.89% | ||
| Cap/Sales | 4.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.32% | ||
| Profit Quality | 104.09% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 3.71 |
F-Score7
WACC7.47%
ROIC/WACC1.44
Cap/Depr(3y)139.21%
Cap/Depr(5y)128.85%
Cap/Sales(3y)6.6%
Cap/Sales(5y)6.37%
Profit Quality(3y)112.23%
Profit Quality(5y)94%
High Growth Momentum
Growth
EPS 1Y (TTM)6.14%
EPS 3Y24.41%
EPS 5Y4.39%
EPS Q2Q%-1.3%
EPS Next Y8.4%
EPS Next 2Y11.85%
EPS Next 3Y11.82%
EPS Next 5Y16.58%
Revenue 1Y (TTM)3.29%
Revenue growth 3Y4.68%
Revenue growth 5Y5.19%
Sales Q2Q%4.4%
Revenue Next Year2.94%
Revenue Next 2Y4.34%
Revenue Next 3Y4.75%
Revenue Next 5Y6.72%
EBIT growth 1Y12.05%
EBIT growth 3Y15.62%
EBIT growth 5Y6.49%
EBIT Next Year54.31%
EBIT Next 3Y21.42%
EBIT Next 5Y17.68%
FCF growth 1Y25.63%
FCF growth 3Y17.33%
FCF growth 5Y-0.98%
OCF growth 1Y6.35%
OCF growth 3Y7.85%
OCF growth 5Y3.67%
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 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%.