Yum China Holdings, Inc. — Restaurants. Scored on the same transparent 7-signal model behind the daily rankings.
★
YUMC
Yum China Holdings, Inc. · Restaurants
FCF$931mC+
Rev+4.4%C+
D/E0.38A-
P/E16.2xB+
PEG1.06B+
74.8Score
$42.31$14.6B
1Y Target$61.34Analyst consensus · 21 analysts
5Y Target$89.81Compound horizon
10Y Target$133.23Long-dated conviction
FCF$931mTTMC+
FCF $931m — respectable but not differentiating
Rev+4.4%TTM YoYC+
Revenue +4.4% — steady but below market-beating range
D/E0.38A-
D/E 0.38 — less debt than most Consumer Cyclical peers (≈25th pctile)
P/E16.2xB+
P/E 16.2 — below the Consumer Cyclical median (≈40th pctile)
PEG1.06B+
PEG 1.06 — near fair value, classic Lynch benchmark (1.0)
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 74.8
Quality0.83
Growth0.68
Value0.74
Why this score
Buying back stock
Raising its dividend
Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week low
28% off the 12-month high
vs DCF fair value13% belowest. fair value ~$49
Quality signals · context only
Gross profitability58% · Agross profit ÷ total assets (Novy-Marx)
ROIC19.4% · A-return on invested capital — not score-weighted
Why now
Restaurants · market cap $14.6b. Down 28% from 52-week high of $58.39 — deep drawdown territory. 21 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $61.34 (implying +45% upside).
Moat
ROE 17% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 98% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon
1-3 yr $61.34 (21-analyst consensus) — fundamentals + valuation re-rating. 5 yr $89.81 at ~16% CAGR — compounding case rests on the competitive position widening. 10 yr $133.23 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · YUMC
$
%
%
Shares to buy
47
Position size
$1,989
4.0% of portfolio
Stop price
$31.73
25% below $42.31
$ at risk if stopped
$497.14
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Yum China Holdings, Inc. (YUMC): score, valuation & FAQ
Yum China Holdings, Inc. (YUMC) is a Restaurants company that scores 74.8 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are D/E (A-), P/E (B+) and PEG (B+). On valuation, YUMC sits about 13% below our discounted-cash-flow fair value (a margin of safety).
Is YUMC a good stock to buy?
Bull Rankings scores YUMC 74.8 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by D/E (A-), P/E (B+) and PEG (B+). A score is a quantitative screen of Yum China Holdings, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does YUMC score 74.8 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). YUMC earns its highest marks on D/E (A-), P/E (B+) and PEG (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is YUMC overvalued or undervalued?
Based on $42.31, YUMC sits about 13% below our discounted-cash-flow fair value (a margin of safety). It trades at a 16.2x× P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in YUMC?
Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.