YUM CHINA HOLDINGS INC (YUMC) Stock Fundamental Analysis

NYSE:YUMC • US98850P1093

54.46 USD
-1.04 (-1.87%)
Last: Feb 19, 2026, 01:21 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, YUMC scores 6 out of 10 in our fundamental rating. YUMC was compared to 126 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 decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year YUMC was profitable.
  • In the past year YUMC had a positive cash flow from operations.
  • 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

  • With a decent Return On Assets value of 8.62%, YUMC is doing good in the industry, outperforming 78.57% of the companies in the same industry.
  • YUMC has a better Return On Equity (17.27%) than 74.60% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 11.31%, YUMC is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for YUMC is in line with the industry average of 10.58%.
  • The 3 year average ROIC (9.86%) for YUMC is below the current ROIC(11.31%), indicating increased profibility in the last year.
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

  • Looking at the Profit Margin, with a value of 7.87%, YUMC is in the better half of the industry, outperforming 65.87% of the companies in the same industry.
  • In the last couple of years the Profit Margin of YUMC has declined.
  • YUMC has a Operating Margin of 11.25%. This is comparable to the rest of the industry: YUMC outperforms 59.52% of its industry peers.
  • YUMC's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 41.32%, YUMC is doing worse than 62.70% of the companies in the same industry.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

7

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 less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for YUMC has been reduced compared to a year ago.
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

  • An Altman-Z score of 3.92 indicates that YUMC is not in any danger for bankruptcy at the moment.
  • YUMC has a better Altman-Z score (3.92) than 84.13% of its industry peers.
  • The Debt to FCF ratio of YUMC is 0.10, which is an excellent value as it means it would take YUMC, only 0.10 years of fcf income to pay off all of its debts.
  • YUMC has a Debt to FCF ratio of 0.10. This is amongst the best in the industry. YUMC outperforms 92.06% of its industry peers.
  • A Debt/Equity ratio of 0.02 indicates that YUMC is not too dependend on debt financing.
  • YUMC's Debt to Equity ratio of 0.02 is amongst the best of the industry. YUMC outperforms 86.51% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF 0.1
Altman-Z 3.92
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's Current ratio of 1.05 is in line compared to the rest of the industry. YUMC outperforms 52.38% of its industry peers.
  • A Quick Ratio of 0.85 indicates that YUMC may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.85, YUMC perfoms like the industry average, outperforming 44.44% 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. Growth

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.
  • YUMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.38% yearly.
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

  • Based on estimates for the next years, YUMC will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.44% on average per year.
  • YUMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.39% yearly.
EPS Next Y15.12%
EPS Next 2Y13.22%
EPS Next 3Y13.37%
EPS Next 5Y17.44%
Revenue Next Year5.8%
Revenue Next 2Y5.75%
Revenue Next 3Y6.52%
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. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 21.61 indicates a rather expensive valuation of YUMC.
  • Based on the Price/Earnings ratio, YUMC is valued a bit cheaper than 62.70% of the companies in the same industry.
  • YUMC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.27.
  • YUMC is valuated rather expensively with a Price/Forward Earnings ratio of 18.77.
  • 61.90% of the companies in the same industry are more expensive than YUMC, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of YUMC to the average of the S&P500 Index (28.16), we can say YUMC is valued slightly cheaper.
Industry RankSector Rank
PE 21.61
Fwd PE 18.77
YUMC Price Earnings VS Forward Price EarningsYUMC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, YUMC is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
  • YUMC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. YUMC is cheaper than 64.29% of the companies in the same industry.
Industry RankSector Rank
P/FCF 22.95
EV/EBITDA 9.82
YUMC Per share dataYUMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • YUMC's 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 13.37% in the coming years.
PEG (NY)1.43
PEG (5Y)2.09
EPS Next 2Y13.22%
EPS Next 3Y13.37%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • YUMC has a Yearly Dividend Yield of 2.01%.
  • Compared to an average industry Dividend Yield of 1.10, YUMC pays a better dividend. On top of this YUMC pays more dividend than 80.95% of the companies listed in the same industry.
  • YUMC's Dividend Yield is comparable with the S&P500 average which is at 1.85.
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 over 5 years, so it has already some track record.
  • YUMC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)32.22%
Div Incr Years2
Div Non Decr Years4
YUMC Yearly Dividends per shareYUMC Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2Y13.22%
EPS Next 3Y13.37%
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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YUM CHINA HOLDINGS INC

NYSE:YUMC (2/19/2026, 1:21:04 PM)

54.46

-1.04 (-1.87%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-04
Earnings (Next)04-28
Inst Owners76.9%
Inst Owner Change-1.03%
Ins Owners0.37%
Ins Owner Change10.34%
Market Cap19.28B
Revenue(TTM)11.80B
Net Income(TTM)929.00M
Analysts84
Price Target59.52 (9.29%)
Short Float %1.67%
Short Ratio3.97
Dividend
Industry RankSector Rank
Dividend Yield 2.01%
Yearly Dividend0.96
Dividend Growth(5Y)32.22%
DP38%
Div Incr Years2
Div Non Decr Years4
Ex-DateN/A
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)0.83%
PT rev (3m)0.83%
EPS NQ rev (1m)-0.66%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)-0.48%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)1.2%
Revenue NQ rev (3m)4.17%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.32%
Valuation
Industry RankSector Rank
PE 21.61
Fwd PE 18.77
P/S 1.63
P/FCF 22.95
P/OCF 13.15
P/B 3.58
P/tB 5.9
EV/EBITDA 9.82
EPS(TTM)2.52
EY4.63%
EPS(NY)2.9
Fwd EY5.33%
FCF(TTM)2.37
FCFY4.36%
OCF(TTM)4.14
OCFY7.6%
SpS33.32
BVpS15.19
TBVpS9.23
PEG (NY)1.43
PEG (5Y)2.09
Graham Number29.35
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 3.92
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 Y15.12%
EPS Next 2Y13.22%
EPS Next 3Y13.37%
EPS Next 5Y17.44%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y7.23%
Revenue growth 5Y7.38%
Sales Q2Q%15.98%
Revenue Next Year5.8%
Revenue Next 2Y5.75%
Revenue Next 3Y6.52%
Revenue Next 5Y7.39%
EBIT growth 1Y10.49%
EBIT growth 3Y20.68%
EBIT growth 5Y12.67%
EBIT Next Year52.31%
EBIT Next 3Y20.84%
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 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 7 / 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 38%.