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The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Good Sign:
Beneish M-Score -2.58 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Yum China Holdings's Beneish M-Score or its related term are showing as below:
HKSE:09987'
s Beneish M-Score Range Over the Past 10 Years
Min: -3.27 Med: -2.58 Max: -1.2
Current: -2.58
During the past 13 years, the highest Beneish M-Score of Yum China Holdings was -1.20. The lowest was -3.27. And the median was -2.58.
Yum China Holdings Beneish M-Score Related Terms
Yum China Holdings Beneish M-Score Historical Data
* Premium members only.
The historical data trend for Yum China Holdings's Beneish M-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HKSE:09987 vs TXRH, DPZ, BROS: Beneish M-Score Comparison
For the Restaurants subindustry, Yum China Holdings's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Yum China Holdings Beneish M-Score vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum China Holdings's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Yum China Holdings's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of Yum China Holdings for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 1.0991
+
0.528 * 0.9835
+
0.404 * 0.9932
+
0.892 * 1.0704
+
0.115 * 1.0992
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.96
+
4.679 * -0.050721
-
0.327 * 1.0514
=
-2.57
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(3644.316 / (3644.316 + 35140.829))
/
(3561.33 / (3561.33 + 38100.862))
=
0.093962
/
0.085481
=
1.0992
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(7390.527 - -531.621
-
12224.265)
/
84819.032
=
-0.050721
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Yum China Holdings has a M-score of -2.57 suggests that the company is unlikely to be a manipulator.
Yum China Holdings (HKSE:09987) has a Beneish M-Score of -2.58 as of Jul. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Yum China Holdings and its competitors. According to the industry distribution chart, Yum China Holdings ranks #236 out of 355 companies in the Restaurants industry, placing it in the top 66.5%.
Is Yum China Holdings' Beneish M-Score too high?
Yum China Holdings' current Beneish M-Score is -2.58. Based on the distribution chart, Yum China Holdings ranks #236 out of 355 companies in the Restaurants industry, which is below the industry midpoint. Overall, Yum China Holdings has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Yum China Holdings' Beneish M-Score compare to TXRH and DPZ?
According to the Restaurants industry distribution chart, Yum China Holdings ranks #236 out of 355 companies for Beneish M-Score. This places Yum China Holdings in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Restaurants company?
A good Beneish M-Score depends on the Restaurants industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Yum China Holdings and its competitors. Yum China Holdings's current Beneish M-Score is -2.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yum China Holdings stock overvalued right now?
Based on GuruFocus' analysis, Yum China Holdings (HKSE:09987) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$429.28, compared to a current price of HK$335.00 — trading 22% below its estimated fair value. The current Beneish M-Score is -2.58. Yum China Holdings' overall GF Score™ is 96/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Yum China Holdings (HKSE:09987), the current Beneish M-Score is -2.58 as of Jul. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Yum China Holdings (HKSE:09987) Overvalued in 2026?
Based on GuruFocus' analysis, Yum China Holdings stock appears to be undervalued.
The current stock price of HK$335.00 is trading 22% below its estimated GF Value™ of HK$429.28.
GuruFocus considers Yum China Holdings to be Modestly Undervalued.
Key valuation signals for HKSE:09987:
Beneish M-Score: -2.58
GF Value™: HK$429.28 vs. price of HK$335.00 (22% below fair value)
No single metric tells the full story. See the HKSE:09987 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yum China is the largest restaurant operator in China, with over 18,000 locations and USD 12 billion in systemwide sales as of 2025. It generates revenue primarily from its own restaurants and franchise fees. While KFC and Pizza Hut are its flagship brands, Yum China's portfolio also includes Little Sheep, Taco Bell, Huang Ji Huang, and Lavazza.As a trademark licensee of Yum Brands, Yum China pays 3% of KFC and Pizza Hut's systemwide sales to its former parent, from which it spun off in 2016. However, even before the separation, Yum China was granted substantial autonomy, giving its Chinese leadership decision-making authority over menu, supply chain, and marketing—an unusual practice for Western chains at the time.
96GF Score
Get the complete analysis for HKSE:09987
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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