Is Yum China Stock a Good Investment?
Yum China Investment Advice | YUMC |
- Examine Yum China's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Yum China's leadership team and their track record. Good management can help Yum China navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Hotels, Restaurants & Leisure space and any emerging trends that could impact Yum China's business and its evolving consumer preferences.
- Compare Yum China's performance and market position to its competitors. Analyze how Yum China is positioned in terms of product offerings, innovation, and market share.
- Check if Yum China pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Yum China's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Yum China Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Yum China Holdings is a good investment.
Sell | Buy |
Sell
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Yum China Stock
Researching Yum China's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 89.0% of the company outstanding shares are owned by institutional investors. The book value of Yum China was at this time reported as 15.15. The company has Price/Earnings To Growth (PEG) ratio of 1.29. Yum China Holdings last dividend was issued on the 6th of March 2025.
To determine if Yum China is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Yum China's research are outlined below:
| Over 89.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: A Look At The Fair Value Of Yum China Holdings, Inc. |
Yum China Quarterly Accounts Payable |
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Yum China uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Yum China Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Yum China's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Yum China's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Yum China's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2018-02-07 | 2017-12-31 | 0.17 | 0.19 | 0.02 | 11 | ||
2023-02-07 | 2022-12-31 | 0.15 | 0.12 | -0.03 | 20 | ||
2019-01-31 | 2018-12-31 | 0.08 | 0.12 | 0.04 | 50 | ||
2020-02-05 | 2019-12-31 | 0.19 | 0.25 | 0.06 | 31 | ||
2018-10-30 | 2018-09-30 | 0.45 | 0.51 | 0.06 | 13 | ||
2017-04-05 | 2017-03-31 | 0.38 | 0.44 | 0.06 | 15 | ||
2022-05-03 | 2022-03-31 | 0.31 | 0.24 | -0.07 | 22 | ||
2019-07-30 | 2019-06-30 | 0.39 | 0.46 | 0.07 | 17 |
Yum China Target Price Consensus
Yum target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Yum China's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 26 | Strong Buy |
Most Yum analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Yum stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Yum China Holdings, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationYum China Target Price Projection
Yum China's current and average target prices are 47.78 and 57.84, respectively. The current price of Yum China is the price at which Yum China Holdings is currently trading. On the other hand, Yum China's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Yum China Market Quote on 25th of February 2025
Target Price
Analyst Consensus On Yum China Target Price
Yum China Analyst Ratings
Yum China's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Yum China stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Yum China's financials, market performance, and future outlook by experienced professionals. Yum China's historical ratings below, therefore, can serve as a valuable tool for investors.Know Yum China's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Yum China is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Yum China Holdings backward and forwards among themselves. Yum China's institutional investor refers to the entity that pools money to purchase Yum China's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Fidelity International Ltd | 2024-09-30 | 6.4 M | State Street Corp | 2024-12-31 | 5.9 M | Loomis, Sayles & Company Lp | 2024-12-31 | 5.2 M | Alliancebernstein L.p. | 2024-12-31 | 5.2 M | William Blair Investment Management, Llc | 2024-12-31 | 5.1 M | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 4.8 M | Wellington Management Company Llp | 2024-12-31 | 4.6 M | Mawer Investment Management Ltd | 2024-12-31 | 4.2 M | Norges Bank | 2024-12-31 | 4.1 M | Jpmorgan Chase & Co | 2024-09-30 | 36.3 M | Blackrock Inc | 2024-12-31 | 16.5 M |
Yum China's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 17.61 B.Market Cap |
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Yum China's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.10 | 0.10 | |
| Return On Capital Employed | 0.13 | 0.17 | |
| Return On Assets | 0.08 | 0.09 | |
| Return On Equity | 0.13 | 0.12 |
Determining Yum China's profitability involves analyzing its financial statements and using various financial metrics to determine if Yum China is a good buy. For example, gross profit margin measures Yum China's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Yum China's profitability and make more informed investment decisions.
Please note, the presentation of Yum China's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Yum China's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Yum China's management manipulating its earnings.
Evaluate Yum China's management efficiency
Yum China Holdings has return on total asset (ROA) of 0.0648 % which means that it generated a profit of $0.0648 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1447 %, meaning that it created $0.1447 on every $100 dollars invested by stockholders. Yum China's management efficiency ratios could be used to measure how well Yum China manages its routine affairs as well as how well it operates its assets and liabilities. At present, Yum China's Return On Capital Employed is projected to increase slightly based on the last few years of reporting. The current year's Return On Assets is expected to grow to 0.09, whereas Return On Equity is forecasted to decline to 0.12. At present, Yum China's Deferred Long Term Asset Charges is projected to decrease significantly based on the last few years of reporting. The current year's Return On Tangible Assets is expected to grow to 0.10, whereas Total Assets are forecasted to decline to about 7.7 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 15.40 | 8.79 | |
| Tangible Book Value Per Share | 10.65 | 6.86 | |
| Enterprise Value Over EBITDA | 10.82 | 8.86 | |
| Price Book Value Ratio | 3.17 | 4.76 | |
| Price Fair Value | 3.17 | 4.76 | |
| Enterprise Value Multiple | 10.82 | 8.86 | |
| Enterprise Value | 13 B | 8.7 B |
Yum China Holdings has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.
Basic technical analysis of Yum Stock
As of the 25th of February, Yum China maintains the Mean Deviation of 1.62, market risk adjusted performance of 0.0915, and Downside Deviation of 1.99. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Yum China Holdings, as well as the relationship between them.Yum China's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Yum China insiders, such as employees or executives, is commonly permitted as long as it does not rely on Yum China's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Yum China insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Yum China's Outstanding Corporate Bonds
Yum China issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Yum China Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Yum bonds can be classified according to their maturity, which is the date when Yum China Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Understand Yum China's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Yum China's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0178 | |||
| Market Risk Adjusted Performance | 0.0915 | |||
| Mean Deviation | 1.62 | |||
| Semi Deviation | 1.95 | |||
| Downside Deviation | 1.99 | |||
| Coefficient Of Variation | 6653.19 | |||
| Standard Deviation | 2.29 | |||
| Variance | 5.25 | |||
| Information Ratio | 0.0085 | |||
| Jensen Alpha | 0.023 | |||
| Total Risk Alpha | 0.009 | |||
| Sortino Ratio | 0.0098 | |||
| Treynor Ratio | 0.0815 | |||
| Maximum Drawdown | 13.15 | |||
| Value At Risk | (3.78) | |||
| Potential Upside | 3.62 | |||
| Downside Variance | 3.95 | |||
| Semi Variance | 3.8 | |||
| Expected Short fall | (1.88) | |||
| Skewness | 0.9036 | |||
| Kurtosis | 2.9 |
| Risk Adjusted Performance | 0.0178 | |||
| Market Risk Adjusted Performance | 0.0915 | |||
| Mean Deviation | 1.62 | |||
| Semi Deviation | 1.95 | |||
| Downside Deviation | 1.99 | |||
| Coefficient Of Variation | 6653.19 | |||
| Standard Deviation | 2.29 | |||
| Variance | 5.25 | |||
| Information Ratio | 0.0085 | |||
| Jensen Alpha | 0.023 | |||
| Total Risk Alpha | 0.009 | |||
| Sortino Ratio | 0.0098 | |||
| Treynor Ratio | 0.0815 | |||
| Maximum Drawdown | 13.15 | |||
| Value At Risk | (3.78) | |||
| Potential Upside | 3.62 | |||
| Downside Variance | 3.95 | |||
| Semi Variance | 3.8 | |||
| Expected Short fall | (1.88) | |||
| Skewness | 0.9036 | |||
| Kurtosis | 2.9 |
Consider Yum China's intraday indicators
Yum China intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Yum China stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Yum China Corporate Filings
F4 | 18th of February 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 6th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10Q | 8th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
13A | 23rd of October 2024 An amended filing to the original Schedule 13G | ViewVerify |
Yum Stock media impact
Far too much social signal, news, headlines, and media speculation about Yum China that are available to investors today. That information is available publicly through Yum media outlets and privately through word of mouth or via Yum internal channels. However, regardless of the origin, that massive amount of Yum data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Yum China news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Yum China relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Yum China's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Yum China alpha.
Yum China Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Yum China can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Yum China Holdings Historical Investor Sentiment
Investor biases related to Yum China's public news can be used to forecast risks associated with an investment in Yum. The trend in average sentiment can be used to explain how an investor holding Yum can time the market purely based on public headlines and social activities around Yum China Holdings. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Yum China's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Yum China and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Yum China news discussions. The higher the estimate score, the more favorable the investor's outlook on Yum China.
Yum China Maximum Pain Price Across April 17th 2025 Option Contracts
Yum China's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Yum China close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Yum China's options.
Yum China Corporate Directors
| Christian Campbell | Independent Director | Profile | |
| Edouard Ettedgui | Independent Director | Profile | |
| William Wang | Independent Director | Profile | |
| Ruby Lu | Independent Director | Profile |
Already Invested in Yum China Holdings?
The danger of trading Yum China Holdings is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Yum China is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Yum China. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Yum China Holdings is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Yum China Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Yum China's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Yum China Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Yum China Holdings Stock: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Yum China Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Yum China. If investors know Yum will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Yum China listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.271 | Dividend Share 0.64 | Earnings Share 2.33 | Revenue Per Share | Quarterly Revenue Growth 0.041 |
The market value of Yum China Holdings is measured differently than its book value, which is the value of Yum that is recorded on the company's balance sheet. Investors also form their own opinion of Yum China's value that differs from its market value or its book value, called intrinsic value, which is Yum China's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Yum China's market value can be influenced by many factors that don't directly affect Yum China's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Yum China's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Yum China is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Yum China's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.