Yum! Brands Inc. (NYSE:YUM) has a beta of 1.09, a 12-month trailing P/E ratio of 30.63, and a growth ratio of 2.16. The stock’s Relative Strength Index (RSI) is 34.25, with weekly volatility at 1.44% and ATR at 1.69. The YUM stock’s 52-week price range has touched low of $84.17 and a $122.72 high. Its shares traded lower over the last trading session, losing -1.88% on 06/18/21. The shares fell to a low of $114.52 before closing at $114.64. Intraday shares traded counted 3.93 million, which was -158.52% lower than its 30-day average trading volume of 1.52M. YUM’s previous close was $116.84 while the outstanding shares total 301.00M.
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 $34.81 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 561.0 million on their books with 394.0 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 a decline. In terms of their assets, the company currently has 1.45 billion total, with 1.48 billion as their total liabilities.
YUM were able to record 279.0 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by -222.0 million. In cash movements, the company had a total of 324.0 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 08/05/2021 quarter of the year, Yum! Brands Inc. recorded a total of 1.49 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 15.01% coming in sequential stages and their sales for the 08/05/2021 quarter reducing by -17.29%.
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 392.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 1.09 billion. This allows shareholders to hold on to 301.00M with the recently reported earning now reading 1.08 cents per share. This is a figure that compared to analyst’s prediction for their 08/05/2021 (1.07 cents a share).
Having a look at the company’s valuation, the company is expected to record 4.60 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, Chief Executive Officer, Gibbs David W sold 1,362 shares of the company’s stock in a transaction that recorded on Jun 15. The sale was performed at an average price of 118.20, for a total value of 160,988. As the sale deal closes, the COO and CPO, Skeans Tracy L now sold 10,838 shares of the company’s stock, valued at 1,302,294. Also, Chief Executive Officer, Gibbs David W sold 1,370 shares of the company’s stock in a deal that was recorded on May 18. The shares were price at an average price of 119.33 per share, with a total market value of 163,482. Following this completion of acquisition, the Chief Executive Officer, Gibbs David W now holds 46,473 shares of the company’s stock, valued at 5,501,496. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
7 out of 24 analysts covering the stock have rated it a Buy, while 14 have maintained a Hold recommendation on Yum! Brands Inc.. 2 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 $120.86.