Yum China Holdings Inc (NYSE: YUMC)’s stock price has soared by 0.35 in relation to previous closing price of 37.10. Nevertheless, the company has seen a loss of -1.33% in its stock price over the last five trading days. Zacks Investment Research reported 2024-04-22 that Restaurant stocks like Brinker International, Inc. (EAT), Portillo’s Inc. (PTLO), CAVA Group, Inc. (CAVA), Yum China Holdings, Inc. (YUMC) and Wingstop Inc. (WING) are likely to benefit from the steady rise in sales.
Is It Worth Investing in Yum China Holdings Inc (NYSE: YUMC) Right Now?
Yum China Holdings Inc (NYSE: YUMC) has a higher price-to-earnings ratio of 18.95x compared to its average ratio, The 36-month beta value for YUMC is at 0.45. Analysts have varying views on the stock, with 6 analysts rating it as a “buy,” 3 rating it as “overweight,” 4 as “hold,” and 0 as “sell.”
The public float for YUMC is 386.34M, and currently, shorts hold a 3.16% of that float. The average trading volume for YUMC on April 23, 2024 was 3.30M shares.
YUMC’s Market Performance
The stock of Yum China Holdings Inc (YUMC) has seen a -1.33% decrease in the past week, with a -4.54% drop in the past month, and a 8.07% gain in the past quarter. The volatility ratio for the week is 1.98%, and the volatility levels for the past 30 days are at 2.10% for YUMC. The simple moving average for the past 20 days is -3.28% for YUMC’s stock, with a -20.17% simple moving average for the past 200 days.
Analysts’ Opinion of YUMC
Many brokerage firms have already submitted their reports for YUMC stocks, with Deutsche Bank repeating the rating for YUMC by listing it as a “Buy.” The predicted price for YUMC in the upcoming period, according to Deutsche Bank is $58 based on the research report published on December 19, 2023 of the previous year 2023.
Jefferies, on the other hand, stated in their research note that they expect to see YUMC reach a price target of $71.30, previously predicting the price at $65.78. The rating they have provided for YUMC stocks is “Buy” according to the report published on September 22nd, 2023.
CLSA gave a rating of “Buy” to YUMC, setting the target price at $71.60 in the report published on September 15th of the previous year.
YUMC Trading at -7.41% from the 50-Day Moving Average
After a stumble in the market that brought YUMC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -42.28% of loss for the given period.
Volatility was left at 2.10%, however, over the last 30 days, the volatility rate increased by 1.98%, as shares sank -1.72% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -6.10% lower at present.
During the last 5 trading sessions, YUMC fell by -1.33%, which changed the moving average for the period of 200-days by -32.05% in comparison to the 20-day moving average, which settled at $38.46. In addition, Yum China Holdings Inc saw -12.26% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at YUMC starting from Zhang Leila, who sale 1,790 shares at the price of $45.02 back on Nov 24 ’23. After this action, Zhang Leila now owns 17,081 shares of Yum China Holdings Inc, valued at $80,586 using the latest closing price.
Wat Joey, the Chief Executive Officer of Yum China Holdings Inc, purchase 14,000 shares at $46.26 during a trade that took place back on Nov 22 ’23, which means that Wat Joey is holding 269,144 shares at $647,615 based on the most recent closing price.
Stock Fundamentals for YUMC
Current profitability levels for the company are sitting at:
- 0.1 for the present operating margin
- 0.17 for the gross margin
The net margin for Yum China Holdings Inc stands at 0.08. The total capital return value is set at 0.12. Equity return is now at value 12.83, with 6.93 for asset returns.
Based on Yum China Holdings Inc (YUMC), the company’s capital structure generated 0.28 points at debt to capital in total, while cash flow to debt ratio is standing at 0.58. The debt to equity ratio resting at 0.4. The interest coverage ratio of the stock is 43.85.
Currently, EBITDA for the company is 1.7 billion with net debt to EBITDA at 0.85. When we switch over and look at the enterprise to sales, we see a ratio of 1.49. The receivables turnover for the company is 38.79for trailing twelve months and the total asset turnover is 0.91. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.42.
Conclusion
In conclusion, Yum China Holdings Inc (YUMC) has had a bad performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
