Yum China Holdings Inc
Yum China Holdings Inc Fundamental Analysis
Yum China Holdings Inc (0YU.DE) shows moderate financial fundamentals with a PE ratio of 25.48, profit margin of 7.87%, and ROE of 16.41%. The company generates $12.1B in annual revenue with moderate year-over-year growth of 4.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 0YU.DE's fundamental strength across five key dimensions:
Efficiency Score
Weak0YU.DE struggles to generate sufficient returns from assets.
Valuation Score
Weak0YU.DE trades at a premium to fair value.
Growth Score
Weak0YU.DE faces weak or negative growth trends.
Financial Health Score
Excellent0YU.DE maintains a strong and stable balance sheet.
Profitability Score
Moderate0YU.DE maintains healthy but balanced margins.
Key Financial Metrics
Is 0YU.DE Expensive or Cheap?
P/E Ratio
0YU.DE trades at 25.48 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 0YU.DE's PEG of 12.40 indicates potential overvaluation.
Price to Book
The market values Yum China Holdings Inc at 4.40 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.64 times EBITDA. This signals the market has high growth expectations.
How Well Does 0YU.DE Make Money?
Net Profit Margin
For every $100 in sales, Yum China Holdings Inc keeps $7.87 as profit after all expenses.
Operating Margin
Core operations generate 11.24 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.41 in profit for every $100 of shareholder equity.
ROA
Yum China Holdings Inc generates $8.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Yum China Holdings Inc produces operating cash flow of $1.50B, showing steady but balanced cash generation.
Free Cash Flow
Yum China Holdings Inc produces free cash flow of $860.68M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.08 in free cash annually.
FCF Yield
0YU.DE converts 3.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
12.40
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How 0YU.DE Stacks Against Its Sector Peers
| Metric | 0YU.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.48 | 24.05 | Neutral |
| ROE | 16.41% | 1156.00% | Weak |
| Net Margin | 7.87% | 2544.00% | Weak |
| Debt/Equity | 0.44 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 1.05 | 2.85 | Neutral |
| ROA | 8.62% | 828.00% | Weak |
0YU.DE outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Yum China Holdings Inc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
55.10%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
28.73%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
42.96%
Industry Style: Cyclical, Growth, Discretionary
High Growth