YUM CHINA HOLDINGS INC (YUMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YUMC - US98850P1093 - Common Stock
47.55 USD
-0.64 (-1.33%)
47.55 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to YUMC. YUMC was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. YUMC is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. YUMC has a correct valuation and a medium 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.
- 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 78.20% of its industry peers.
- Looking at the Return On Equity, with a value of 15.88%, YUMC is in the better half of the industry, outperforming 72.93% of the companies in the same industry.
- 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.
- YUMC's Profit Margin has been stable in the last couple of years.
- YUMC has a better Operating Margin (11.18%) than 62.41% 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's Gross Margin of 41.58% is on the low side compared to the rest of the industry. YUMC is outperformed by 60.90% 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
- 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
- The number of shares outstanding for YUMC has been increased compared to 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 3.73. 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 3.73, YUMC belongs to the top of the industry, outperforming 82.71% 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.
- YUMC has a Debt to FCF ratio of 0.09. This is amongst the best in the industry. YUMC outperforms 93.23% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that YUMC is not too dependend on debt financing.
- YUMC has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. YUMC outperforms 87.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 3.73 |
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 65.41% 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.
- Looking at the Quick ratio, with a value of 1.15, YUMC is in the better half of the industry, outperforming 63.91% of the companies in the same industry.
| 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.
- YUMC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.29%.
- 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 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 Y8.4%
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.
- 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 19.65, YUMC is valued on the expensive side.
- Based on the Price/Earnings ratio, YUMC is valued a bit cheaper than the industry average as 72.18% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.54, YUMC is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 16.31, YUMC is valued correctly.
- Based on the Price/Forward Earnings ratio, YUMC is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of YUMC to the average of the S&P500 Index (24.31), we can say YUMC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.65 | ||
| Fwd PE | 16.31 |
4.2 Price Multiples
- 83.46% of the companies in the same industry are more expensive than YUMC, based on the Enterprise Value to EBITDA ratio.
- 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 | 18.26 | ||
| EV/EBITDA | 7.92 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- YUMC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.34
PEG (5Y)4.48
EPS Next 2Y11.85%
EPS Next 3Y11.82%
5. Dividend
5.1 Amount
- YUMC has a Yearly Dividend Yield of 2.01%.
- Compared to an average industry Dividend Yield of 6.32, YUMC pays a bit more dividend than its industry peers.
- 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.
- The dividend of YUMC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.39%
EPS Next 2Y11.85%
EPS Next 3Y11.82%
47.55
-0.64 (-1.33%)
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 Change0.04%
Market Cap17.19B
Revenue(TTM)11.57B
Net Income(TTM)904.00M
Analysts84
Price Target59.03 (24.14%)
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 | 19.65 | ||
| Fwd PE | 16.31 | ||
| P/S | 1.49 | ||
| P/FCF | 18.26 | ||
| P/OCF | 11.4 | ||
| P/B | 3.02 | ||
| P/tB | 4.75 | ||
| EV/EBITDA | 7.92 |
EPS(TTM)2.42
EY5.09%
EPS(NY)2.92
Fwd EY6.13%
FCF(TTM)2.6
FCFY5.48%
OCF(TTM)4.17
OCFY8.77%
SpS32.01
BVpS15.75
TBVpS10.02
PEG (NY)2.34
PEG (5Y)4.48
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 | 3.73 |
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%.