Yum China Holdings Inc. (NYSE:YUMC) Relative Strength Index (RSI) is 78.22, with weekly volatility at 1.89% and ATR at 1.32. The YUMC stock’s 52-week price range has touched low of $44.11 and a $67.97 high. Intraday shares traded counted 3.75 million, which was -88.29% lower than its 30-day average trading volume of 1.99M. Its shares traded higher over the last trading session, gaining 1.57% on 06/01/21. The shares fell to a low of $67.89 before closing at $68.70. YUMC’s previous close was $67.64 while the outstanding shares total 420.00M. The firm has a beta of 0.84, a 12-month trailing P/E ratio of 29.68, and a growth ratio of 2.01.
Investors have identified the Restaurants company Yum China Holdings 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 $28.65 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 China Holdings Inc. (YUMC) 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. In terms of their assets, the company currently has 4.76 billion total, with 1.92 billion as their total liabilities.
YUMC were able to record 166.0 million as free cash flow during the 08/04/2021 quarter of the year, this saw their quarterly net cash flow reduce by -74.0 million. In cash movements, the company had a total of 331.0 million as operating cash flow.
Potential earnings growth for Yum China Holdings Inc. (YUMC)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/04/2021 quarter of the year, Yum China Holdings Inc. recorded a total of 2.56 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 31.4% coming in sequential stages and their sales for the 08/04/2021 quarter increasing by 11.65%.
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 1.9 billion trying to sell their products during the last quarter, with the result yielding a gross income of 661.0 million. This allows shareholders to hold on to 420.00M with the recently reported earning now reading 0.58 cents per share. This is a figure that compared to analyst’s prediction for their 08/04/2021 (0.54 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.35 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 YUMC sounds very interesting.
Is the stock of YUMC attractive?
In related news, General Manager, KFC, Huang Johnson sold 6,342 shares of the company’s stock in a transaction that recorded on May 26. The sale was performed at an average price of 66.00, for a total value of 418,572. As the sale deal closes, the Chief People Officer, Yuen Aiken now sold 2,015 shares of the company’s stock, valued at 116,689. Also, Chief Supply Chain Officer, Tan Danny sold 5,238 shares of the company’s stock in a deal that was recorded on Sep 02. The shares were price at an average price of 58.30 per share, with a total market value of 305,401. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
20 out of 27 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Yum China Holdings Inc.. 0 analysts has assigned a Sell rating on the YUMC stock. The 12-month mean consensus price target for the company’s shares has been set at $69.55.