Yum! Brands Inc. (NYSE:YUM) previous close was $86.86 while the outstanding shares total 302.00M. The firm has a beta of 0.95, a 12-month trailing P/E ratio of 24.26, and a growth ratio of 5.29. YUM’s shares traded higher over the last trading session, gaining 1.31% on 05/19/20. The shares fell to a low of $85.46 before closing at $88.00. Intraday shares traded counted 0.94 million, which was 69.33% higher than its 30-day average trading volume of 3.08M. The stock’s Relative Strength Index (RSI) is 63.65, with weekly volatility at 4.65% and ATR at 3.37. The YUM stock’s 52-week price range has touched low of $54.95 and a $119.72 high.
Investors have identified the Restaurants company Yum! Brands Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $26.23 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Yum! Brands Inc. (YUM) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For YUM, the company has in raw cash 1.15 billion on their books with 447.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 1991000000 million total, with 1500000000 million as their total liabilities.
YUM were able to record 203.0 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 542.0 million. In cash movements, the company had a total of 238.0 million as operating cash flow.
Potential earnings growth for Yum! Brands Inc. (YUM)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Yum! Brands Inc. recorded a total of 1.26 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.71% coming in sequential stages and their sales for the third quarter reducing by -34.13%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 298.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 965.0 million. This allows shareholders to hold on to 302.00M with the revenue now reading 0.28 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.64 cents a share).
Having a look at the company’s valuation, the company is expected to record 3.55 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on YUM sounds very interesting.
Is the stock of YUM attractive?
In related news, CEO-KFC Division, Lowings Anthony sold 4,138 shares of the company’s stock in a transaction that recorded on May 06. The sale was performed at an average price of 83.80, for a total value of 346,764. As the sale deal closes, the Chief Executive Officer, Gibbs David W now sold 5,424 shares of the company’s stock, valued at 457,731. Also, Chief Executive Officer, Gibbs David W sold 4,737 shares of the company’s stock in a deal that was recorded on Apr 01. The shares were price at an average price of 65.00 per share, with a total market value of 307,905. Following this completion of acquisition, the CEO-KFC Division, Lowings Anthony now holds 4,260 shares of the company’s stock, valued at 357,457. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
5 out of 27 analysts covering the stock have rated it a Buy, while 18 have maintained a Hold recommendation on Yum! Brands Inc.. 1 analysts has assigned a Sell rating on the YUM stock. The 12-month mean consensus price target for the company’s shares has been set at $88.85.