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Yum China HoldingsYUMC +3.68%81 Return-on-Tangible-Asset is 11.22% as of Jun. 2026, which is 10% above its 10-year median of 10.16. GuruFocus rates YUMC with a GF Score™ of 81/100 and a GF Value™ of $54.32 (Modestly Undervalued). Among 364 Restaurants companies, Yum China Holdings ranks better than 85.44% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Yum China Holdings's annualizedNet Income for the quarter that ended in Jun. 2026 was $976 Mil. Yum China Holdings's average total tangible assets for the quarter that ended in Jun. 2026 was $8,699 Mil. Therefore, Yum China Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 11.22%.
The historical rank and industry rank for Yum China Holdings's Return-on-Tangible-Asset or its related term are showing as below:
YUMC'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 4.37 Med: 10.16 Max: 17.62
Current: 11.2
During the past 13 years, Yum China Holdings's highest Return-on-Tangible-Asset was 17.62%. The lowest was 4.37%. And the median was 10.16%.
YUMC's Return-on-Tangible-Asset is ranked better than 85.44% of 364
companies
in the Restaurants industry
Industry Median: 2.39
vs YUMC: 11.20
Yum China Holdings (NYSE:YUMC) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Yum China Holdings Return-on-Tangible-Asset Related Terms
Yum China Holdings Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Yum China Holdings's Return-on-Tangible-Asset 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.
YUMC vs TXRH, DPZ, LKNCY: Return-on-Tangible-Asset Comparison
For the Restaurants subindustry, Yum China Holdings's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum China Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Yum China Holdings's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 11.22% mean?
Yum China Holdings (YUMC) has a Return-on-Tangible-Asset of 11.22% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Yum China Holdings and its competitors. This is 10% above median its historical median of 10.16. Over the past decade, Yum China Holdings' Return-on-Tangible-Asset has ranged from 4.37 to 17.62. According to the industry distribution chart, Yum China Holdings ranks #53 out of 364 companies in the Restaurants industry, placing it in the top 14.6%.
Is Yum China Holdings' Return-on-Tangible-Asset too high?
Yum China Holdings' current Return-on-Tangible-Asset of 11.22% is 10% above median its 10-year median of 10.16. Over the past 10 years, this metric has ranged from a low of 4.37 to a high of 17.62. The Restaurants industry median Return-on-Tangible-Asset is 2.39. Yum China Holdings' value of 11.22% is 369.5% above this industry median. Based on the distribution chart, Yum China Holdings ranks #53 out of 364 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Yum China Holdings has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Yum China Holdings' Return-on-Tangible-Asset compare to TXRH and DPZ?
According to the Restaurants industry distribution chart, Yum China Holdings ranks #53 out of 364 companies for Return-on-Tangible-Asset. This places Yum China Holdings in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.39. Yum China Holdings' value of 11.22% is 369.5% above this benchmark. Historically, Yum China Holdings' own Return-on-Tangible-Asset has ranged from 4.37 to 17.62 over the past decade. While the company's 10-year median is 10.16 vs. the industry median of 2.39, Yum China Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Restaurants company?
The median Return-on-Tangible-Asset among Restaurants companies is 2.39, based on 364 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Yum China Holdings's current Return-on-Tangible-Asset of 11.22% is 369.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Yum China Holdings and its competitors. For the Restaurants industry, the median Return-on-Tangible-Asset is 2.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yum China Holdings's current Return-on-Tangible-Asset is 11.22%, which is 10% above median its own 10-year median of 10.16. 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 (YUMC) is currently considered Modestly Undervalued. The stock's GF Value™ is $54.32, compared to a current price of $48.18 — trading 11.3% below its estimated fair value. The current Return-on-Tangible-Asset is 11.22%, which is 10% above median its 10-year median of 10.16 and 369.5% above the Restaurants industry median of 2.39. Yum China Holdings' overall GF Score™ is 81/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Yum China Holdings (YUMC), the current Return-on-Tangible-Asset is 11.22% as of Jun. 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 (YUMC) Overvalued in 2026?
Based on GuruFocus' analysis, Yum China Holdings stock appears to be undervalued.
The current stock price of $48.18 is trading 11.3% below its estimated GF Value™ of $54.32.
GuruFocus considers Yum China Holdings to be Modestly Undervalued.
Key valuation signals for YUMC:
Return-on-Tangible-Asset: 11.22% (10% above median its 10-year median of 10.16)
GF Value™: $54.32 vs. price of $48.18 (11.3% below fair value)
Industry Position: 369.5% above the Restaurants median (#53 of 364)
No single metric tells the full story. See the YUMC 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.
81GF Score
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