Yum China Current Valuation vs. Net Income
| 0YU Stock | EUR 46.36 0.15 0.32% |
For Yum China profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Yum China to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Yum China Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Yum China's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Yum China Holdings over time as well as its relative position and ranking within its peers.
Yum |
Yum China Holdings Net Income vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Yum China's current stock value. Our valuation model uses many indicators to compare Yum China value to that of its competitors to determine the firm's financial worth. Yum China Holdings is rated below average in current valuation category among its peers. It also is rated below average in net income category among its peers making up about 0.02 of Net Income per Current Valuation. The ratio of Current Valuation to Net Income for Yum China Holdings is roughly 47.59 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Yum China's earnings, one of the primary drivers of an investment's value.Yum Current Valuation vs. Competition
Yum China Holdings is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Restaurants industry is presently estimated at about 711.07 Billion. Yum China holds roughly 21.04 Billion in current valuation claiming about 2.96% of equities listed under Restaurants industry.
Yum Net Income vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Yum China |
| = | 21.04 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Yum China |
| = | 442 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Yum Net Income Comparison
Yum China is rated below average in net income category among its peers.
Yum China Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Yum China, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Yum China will eventually generate negative long term returns. The profitability progress is the general direction of Yum China's change in net profit over the period of time. It can combine multiple indicators of Yum China, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Yum China Holdings, Inc. owns, operates, and franchises restaurants in China. Yum China Holdings, Inc. was incorporated in 2016 and is headquartered in Shanghai, the Peoples Republic of China. Yum China operates under Restaurants classification in Germany and is traded on Frankfurt Stock Exchange. It employs 460000 people.
Yum Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Yum China. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Yum China position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Yum China's important profitability drivers and their relationship over time.
Use Yum China in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Yum China position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Yum China will appreciate offsetting losses from the drop in the long position's value.Yum China Pair Trading
Yum China Holdings Pair Trading Analysis
The ability to find closely correlated positions to Yum China could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Yum China when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Yum China - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Yum China Holdings to buy it.
The correlation of Yum China is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Yum China moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Yum China Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Yum China can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Yum China position
In addition to having Yum China in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Long Short Funds Thematic Idea Now
Long Short Funds
Funds or Etfs that are designed to hedge away market risk by investing in combination of bonds, stocks, derivative instruments as well as short positions to maximize returns irrespective of market conditions. The Long Short Funds theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Long Short Funds Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Yum Stock
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 Trending Equities. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
To fully project Yum China's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Yum China Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Yum China's income statement, its balance sheet, and the statement of cash flows.