YUM CHINA HOLDINGS INC (YUMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YUMC - US98850P1093 - Common Stock
47.835 USD
+0.29 (+0.6%)
Taking everything into account, YUMC scores 6 out of 10 in our fundamental rating. 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year YUMC was profitable.
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
The Return On Assets of YUMC (8.19%) is better than 78.03% of its industry peers.
With a decent Return On Equity value of 15.88%, YUMC is doing good in the industry, outperforming 72.73% of the companies in the same industry.
The Return On Invested Capital of YUMC (10.78%) is better than 75.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for YUMC is below the industry average of 10.41%.
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
YUMC has a Profit Margin of 7.81%. This is in the better half of the industry: YUMC outperforms 66.67% of its industry peers.
YUMC's Profit Margin has been stable in the last couple of years.
YUMC has a better Operating Margin (11.18%) than 62.12% of its industry peers.
In the last couple of years the Operating Margin of YUMC has remained more or less at the same level.
YUMC has a worse Gross Margin (41.58%) than 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.
Compared to 1 year ago, YUMC has less shares outstanding
The number of shares outstanding for YUMC has been increased compared to 5 years ago.
Compared to 1 year ago, YUMC has an improved debt to assets ratio.
2.2 Solvency
YUMC has an Altman-Z score of 3.74. This indicates that YUMC is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.74, YUMC belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
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.
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.
YUMC has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
YUMC's Debt to Equity ratio of 0.01 is amongst the best of the industry. YUMC outperforms 87.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 3.74 |
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 65.15% 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.
With a decent Quick ratio value of 1.15, YUMC is doing good in the industry, outperforming 64.39% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 3.29% in the past 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
The Earnings Per Share is expected to grow by 17.97% 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 7.85% yearly.
EPS Next Y10.29%
EPS Next 2Y12.57%
EPS Next 3Y12.72%
EPS Next 5Y17.97%
Revenue Next Year3.38%
Revenue Next 2Y4.55%
Revenue Next 3Y5.05%
Revenue Next 5Y7.85%
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
Based on the Price/Earnings ratio of 19.77, the valuation of YUMC can be described as rather expensive.
68.18% of the companies in the same industry are more expensive than YUMC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.65. YUMC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.20, the valuation of YUMC can be described as correct.
Based on the Price/Forward Earnings ratio, YUMC is valued a bit cheaper than 67.42% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of YUMC to the average of the S&P500 Index (34.45), we can say YUMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.77 | ||
| Fwd PE | 16.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YUMC is valued a bit cheaper than 76.52% 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 | 18.74 | ||
| EV/EBITDA | 7.98 |
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.
The decent profitability rating of YUMC may justify a higher PE ratio.
YUMC's earnings are expected to grow with 12.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.92
PEG (5Y)4.51
EPS Next 2Y12.57%
EPS Next 3Y12.72%
5. Dividend
5.1 Amount
YUMC has a Yearly Dividend Yield of 2.22%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.40, YUMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, YUMC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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 2Y12.57%
EPS Next 3Y12.72%
NYSE:YUMC (11/25/2025, 3:21:04 PM)
47.835
+0.29 (+0.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners85.04%
Inst Owner Change-12.7%
Ins Owners0.36%
Ins Owner Change2.08%
Market Cap17.64B
Revenue(TTM)11.57B
Net Income(TTM)904.00M
Analysts84
Price Target58.91 (23.15%)
Short Float %1.49%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Yearly Dividend0.63
Dividend Growth(5Y)5.67%
DP36.39%
Div Incr Years2
Div Non Decr Years4
Ex-Date
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)-0.18%
PT rev (3m)-0.47%
EPS NQ rev (1m)-3.93%
EPS NQ rev (3m)-5.93%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-0.87%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.77 | ||
| Fwd PE | 16.2 | ||
| P/S | 1.52 | ||
| P/FCF | 18.74 | ||
| P/OCF | 11.7 | ||
| P/B | 3.1 | ||
| P/tB | 4.87 | ||
| EV/EBITDA | 7.98 |
EPS(TTM)2.42
EY5.06%
EPS(NY)2.95
Fwd EY6.17%
FCF(TTM)2.55
FCFY5.34%
OCF(TTM)4.09
OCFY8.55%
SpS31.38
BVpS15.44
TBVpS9.82
PEG (NY)1.92
PEG (5Y)4.51
Graham Number28.99
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 | 3.74 |
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 Y10.29%
EPS Next 2Y12.57%
EPS Next 3Y12.72%
EPS Next 5Y17.97%
Revenue 1Y (TTM)3.29%
Revenue growth 3Y4.68%
Revenue growth 5Y5.19%
Sales Q2Q%4.4%
Revenue Next Year3.38%
Revenue Next 2Y4.55%
Revenue Next 3Y5.05%
Revenue Next 5Y7.85%
EBIT growth 1Y12.05%
EBIT growth 3Y15.62%
EBIT growth 5Y6.49%
EBIT Next Year58.16%
EBIT Next 3Y22.88%
EBIT Next 5Y19.52%
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.
What is the valuation status of YUM CHINA HOLDINGS INC (YUMC) stock?
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.
Can you provide the expected EPS growth for YUMC stock?
The Earnings per Share (EPS) of YUM CHINA HOLDINGS INC (YUMC) is expected to grow by 10.29% in the next year.
Can you provide the dividend sustainability for YUMC stock?
The dividend rating of YUM CHINA HOLDINGS INC (YUMC) is 5 / 10 and the dividend payout ratio is 36.39%.