Yum China Holdings (YUMC) Fundamental Analysis: Revenue, Earnings & Valuation

7.30 / 10

Outperform

Fundamental analysis of Yum China Holdings reveals a composite score of 7.3/10, indicating solid positioning. Key strengths include a high ROA of 7.68% (group 4) and an annualized net profit margin on total assets of 10.24% (also group 4), both contributing positively. Although YoY profit growth metrics show mild concerns, the interest coverage ratio of 15.50 suggests ample interest payment capacity. Weighted factors highlight Asset-MV and Revenue-MV as primary drivers, with PB-ROE providing a modest boost. Overall, the fundamentals are encouraging and support an Outperform stance.

Analysis Checks(5/10)

Revenue-MV

Value0.75

Score2/3

Weight12.18%

1M Return1.99%

ROA (%)

Value7.68

Score3/3

Weight19.32%

1M Return2.86%

PB-ROE

Value0.41

Score1/3

Weight-8.69%

1M Return-1.58%

Total profit (YoY growth rate %)

Value0.09

Score1/3

Weight4.95%

1M Return0.88%

Annualized net profit margin on total assets (%)

Value10.24

Score3/3

Weight19.32%

1M Return2.86%

Interest coverage ratio (EBIT / Interest expense) (%)

Value15.51

Score3/3

Weight20.31%

1M Return3.26%

Diluted earnings per share (YoY growth rate %)

Value3.94

Score0/3

Weight-2.20%

1M Return-0.39%

Asset-MV

Value-0.51

Score2/3

Weight40.51%

1M Return6.81%

Net profit attributable to parent company shareholders (YoY growth rate %)

Value-0.88

Score1/3

Weight6.85%

1M Return1.21%

Cash-MV

Value0.35

Score0/3

Weight-12.55%

1M Return-2.54%

Is YUMC undervalued or overvalued?

YUMC scores 7.30/10 on fundamentals and holds a Discounted valuation at present. Backed by its 14.83% ROE, 8.51% net margin, 22.08 P/E ratio, 3.36 P/B ratio, and 7.69% earnings growth, these metrics solidify its Outperform investment rating.