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YUMC

NYSE
Favorable · 61/100

Yum China Holdings Inc

Consumer Discretionary
Hotels, Restaurants & Leisure

$42.27

1.4%

Updated Today 12:11 PM ET

Report Card

YUMC at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Favorable · 61/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▼ Down 7.5% over the last 12 months

Price 50-day average 200-day averageDCF fair value ±15%Source: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$15.24B

P/E

15.39x

Forward P/E (est.)

14.14x

ROE

17.0%

Revenue Growth

6.7%

EPS Growth

8.8%

Profit Margin

7.8%

FCF Yield

7.4%

Debt / Equity

0.02x

ROIC

19.0%

Interest Coverage

Current Ratio

1.01x

Dividend Yield

2.0%

Implied Growth (rev. DCF)

3.3%

Rating Score

61/100

Business Overview
Research

Yum China Holdings Inc (YUMC) is a large-cap company in the Hotels, Restaurants & Leisure industry, part of the Consumer Discretionary sector of the S&P 500, with a market value around $15.24B.

In its latest reported year it generated about $11.80B in revenue and $929.00M in net profit.

Our model rates YUMC Favorable (61/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what YUMC's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. YUMC trades near $42.27, below its 50-day average ($44.57) and 200-day average ($47.44). Price below both averages is a downtrend — momentum is against buyers for now.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 33 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. YUMC's is $0.91 (~2.2% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month YUMC found buyers near $40.15 (support) and sellers near $44.98 (resistance); its 52-week range is $40.15–$58.39. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.5× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

4.6%

4/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $7.08B in 2016 to $11.80B in 2025, a 5.8% compound annual growth rate. The most recent year grew a steady 6.7% year over year. Slower, mature growth is common for established businesses.

Profitability
Research
3/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

40.9%

Operating Margin

10.9%

Net Margin

7.9%

ROE

17.0%

Yum China Holdings Inc keeps about 7.8% of each sales dollar as net profit, with a 40.9% gross margin and 10.9% operating margin. Return on equity is 17.0% and return on invested capital about 19.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research
3/3 checks passedDebt under 1× equityDebt under 2× equityShort-term bills covered

Total Debt

Net Debt

Net Debt / EBITDA

Debt / Equity

0.02x

Leverage: debt-to-equity is 0.0x, with a current ratio of 1.0x. That is a conservative balance sheet — a cushion in downturns.

Cash Flow Analysis
Research
3/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$1.47B

Free Cash Flow

$840.00M

FCF Margin

7.1%

In the latest year Yum China Holdings Inc produced about $1.47B of operating cash flow and $840.00M of free cash flow after capital spending. That is a free-cash-flow yield of about 7.4% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Valuation Analysis
Research
4/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

15.39x

P/S

1.23x

P/B

3.21x

EV / EBITDA

8.5x

YUMC trades at 15.4x trailing earnings (about 14.1x on estimated forward earnings), 1.2x sales, and 3.2x book value. Reverse-engineering today's price implies the market expects roughly 3.3% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$48.15

Current price

$42.27

+14% · Near fair-value estimate

Starting FCF (latest 10-K)

$840.00M

Growth, years 1–5

6.7%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$7.31B
PV of terminal value$9.51B
Estimated equity value$16.81B
Shares outstanding349M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
15.4xCheap
Forward P/E
14.1xCheap
P/S ratio
1.2xCheap
Revenue growth
6.7%Strong
EPS growth
8.8%Average
Gross margin
40.9%Average
Net margin
7.8%Weak
ROE
17.0%Average

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $42.27 today · expected CAGR -4%6%

Metric20262027202820292030
Revenue$12.62B$13.51B$14.45B$15.46B$16.55B
Net income$1.01B$1.08B$1.16B$1.24B$1.32B
EPS$2.89$3.09$3.31$3.54$3.79
Share price (low)$26.03$27.85$29.80$31.89$34.12
Share price (high)$43.38$46.42$49.67$53.15$56.87
CAGR (low–high)-38% / 3%-19% / 5%-11% / 6%-7% / 6%-4% / 6%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for YUMC:

  • Strong return on equity (17.0%) shows capital is put to work well.
  • Healthy free-cash-flow yield (~7.4%) funds buybacks and dividends.
  • A conservative balance sheet (debt/equity 0.0x) lowers risk.
  • Pays a 2.0% dividend on top of any price gains.
  • Our model's overall read is Favorable (61/100).
Bear Case

The case against YUMC:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: Yum China Holdings Inc is a large-cap consumer discretionary business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 15.4x earnings, which our model scores Favorable (61/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

YUMC — frequently asked questions

Is YUMC a good stock to buy?

We don't give buy or sell advice. Our model rates Yum China Holdings Inc Favorable (61/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is YUMC's rating on The Stocks School?

Yum China Holdings Inc currently scores 61/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does YUMC's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Yum China Holdings Inc's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for YUMC calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this YUMC analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell YUMC. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.