YUM CHINA HOLDINGS INC (YUMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YUMC - US98850P1093 - Common Stock
49.045 USD
+1.82 (+3.84%)
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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year YUMC was profitable.
YUMC had a positive operating cash flow in the past year.
YUMC had positive earnings in each of the past 5 years.
In the past 5 years YUMC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of YUMC (8.19%) is better than 78.20% of its industry peers.
YUMC has a better Return On Equity (15.88%) than 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 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 better Profit Margin (7.81%) than 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.
Looking at the Operating Margin, with a value of 11.18%, YUMC is in the better half of the industry, outperforming 62.41% of the companies in the same industry.
YUMC's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 41.58%, YUMC is not doing good in the industry: 60.90% of the companies in the same industry are doing better.
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
YUMC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
An Altman-Z score of 3.69 indicates that YUMC is not in any danger for bankruptcy at the moment.
YUMC has a better Altman-Z score (3.69) than 81.20% 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.
Looking at the Debt to FCF ratio, with a value of 0.09, YUMC belongs to the top of the industry, outperforming 93.23% 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.
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 | 3.69 |
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.
YUMC has a Current ratio of 1.32. This is in the better half of the industry: YUMC outperforms 65.41% of its industry peers.
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's Quick ratio of 1.15 is fine compared to the rest 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.
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.
YUMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.19% yearly.
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
YUMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.58% yearly.
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 2Y4.3%
Revenue Next 3Y4.72%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.27, 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 73.68% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.19, YUMC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.82, YUMC is valued correctly.
YUMC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. YUMC is cheaper than 73.68% of the companies in the same industry.
YUMC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.27 | ||
| Fwd PE | 16.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YUMC is valued cheaply inside the industry as 82.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, YUMC is valued a bit cheaper than the industry average as 77.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.84 | ||
| EV/EBITDA | 7.72 |
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)2.41
PEG (5Y)4.62
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 6.32.
Compared to an average S&P500 Dividend Yield of 1.92, 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 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
YUMC pays out 36.39% of its income as dividend. This is a 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 (1/12/2026, 10:20:05 AM)
49.045
+1.82 (+3.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners76.9%
Inst Owner Change0.01%
Ins Owners0.37%
Ins Owner Change0.04%
Market Cap17.73B
Revenue(TTM)11.57B
Net Income(TTM)904.00M
Analysts84
Price Target59.03 (20.36%)
Short Float %1.7%
Short Ratio4.35
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)0.08%
PT rev (3m)0.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.71%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-2.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.27 | ||
| Fwd PE | 16.82 | ||
| P/S | 1.53 | ||
| P/FCF | 18.84 | ||
| P/OCF | 11.75 | ||
| P/B | 3.11 | ||
| P/tB | 4.9 | ||
| EV/EBITDA | 7.72 |
EPS(TTM)2.42
EY4.93%
EPS(NY)2.92
Fwd EY5.94%
FCF(TTM)2.6
FCFY5.31%
OCF(TTM)4.17
OCFY8.51%
SpS32.01
BVpS15.75
TBVpS10.02
PEG (NY)2.41
PEG (5Y)4.62
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 | 3.69 |
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 2Y4.3%
Revenue Next 3Y4.72%
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%.