Yum China Holdings Stock Buy Hold or Sell Recommendation
| YUMC Stock | USD 47.58 0.51 1.08% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Yum China Holdings is 'Buy'. Macroaxis provides Yum China buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding YUMC positions.
Check out Yum China Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Yum and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Yum China Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.
Yum |
Execute Yum China Buy or Sell Advice
The Yum recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Yum China Holdings. Macroaxis does not own or have any residual interests in Yum China Holdings or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Yum China's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Excited | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Yum China Trading Alerts and Improvement Suggestions
| Yum China Holdings appears to be risky and price may revert if volatility continues | |
| Over 86.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from thelincolnianonline.com: Yum China Holdings, Inc. Receives Average Recommendation of Buy from Analysts |
Yum China Returns Distribution Density
The distribution of Yum China's historical returns is an attempt to chart the uncertainty of Yum China's future price movements. The chart of the probability distribution of Yum China daily returns describes the distribution of returns around its average expected value. We use Yum China Holdings price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Yum China returns is essential to provide solid investment advice for Yum China.
| Mean Return | 0.55 | Value At Risk | -3.47 | Potential Upside | 7.17 | Standard Deviation | 3.01 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Yum China historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Yum Stock Institutional Investors
| Shares | Principal Financial Group Inc | 2024-09-30 | 7.9 M | Massachusetts Financial Services Company | 2024-09-30 | 7.7 M | State Street Corp | 2024-06-30 | 6.1 M | Norges Bank | 2024-06-30 | 5.8 M | Loomis, Sayles & Company Lp | 2024-06-30 | 5.7 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 4.6 M | J O Hambro Investment Management Ltd | 2024-09-30 | 4.2 M | Mondrian Investment Partners Ltd | 2024-09-30 | 4.2 M | Alliancebernstein L.p. | 2024-06-30 | 4.1 M | Jpmorgan Chase & Co | 2024-06-30 | 19.6 M | Blackrock Inc | 2024-06-30 | 17.4 M |
Yum China Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (77M) | 17M | (16M) | (19M) | (17.1M) | (18.0M) | |
| Investments | (490M) | (2.4B) | (56M) | (522M) | (981M) | (932.0M) | |
| Change In Cash | (211M) | 103M | (22M) | (6M) | (2M) | (1.9M) | |
| Free Cash Flow | 750M | 695M | 442M | 734M | 763M | 600.6M | |
| Depreciation | 767M | 450M | 516M | 602M | 453M | 441.5M | |
| Other Non Cash Items | (60M) | 29M | (191M) | 479M | 1.5B | 1.5B | |
| Capital Expenditures | 435M | 419M | 689M | 679M | 710M | 585.8M | |
| Net Income | 743M | 813M | 1.0B | 478M | 827M | 587.7M | |
| End Period Cash Flow | 1.1B | 1.2B | 1.1B | 1.1B | 1.1B | 978M | |
| Change To Netincome | (54M) | (247M) | 43M | 8M | 7.2M | 6.8M | |
| Dividends Paid | 181M | 95M | 203M | 202M | 216M | 133.1M | |
| Change Receivables | (13M) | (9M) | (15M) | (5M) | (1.2M) | (1.2M) |
Yum China Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Yum China or Hotels, Restaurants & Leisure sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Yum China's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Yum stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.46 | |
β | Beta against Dow Jones | 0.69 | |
σ | Overall volatility | 3.06 | |
Ir | Information ratio | 0.14 |
Yum China Volatility Alert
Yum China Holdings currently demonstrates below-average downside deviation. It has Information Ratio of 0.14 and Jensen Alpha of 0.46. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Yum China's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Yum China's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Yum China Fundamentals Vs Peers
Comparing Yum China's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Yum China's direct or indirect competition across all of the common fundamentals between Yum China and the related equities. This way, we can detect undervalued stocks with similar characteristics as Yum China or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Yum China's fundamental indicators could also be used in its relative valuation, which is a method of valuing Yum China by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Yum China to competition |
| Fundamentals | Yum China | Peer Average |
| Return On Equity | 0.14 | -0.31 |
| Return On Asset | 0.0594 | -0.14 |
| Profit Margin | 0.08 % | (1.27) % |
| Operating Margin | 0.12 % | (5.51) % |
| Current Valuation | 18 B | 16.62 B |
| Shares Outstanding | 379.19 M | 571.82 M |
| Shares Owned By Insiders | 0.31 % | 10.09 % |
| Shares Owned By Institutions | 86.40 % | 39.21 % |
| Number Of Shares Shorted | 15.21 M | 4.71 M |
| Price To Earning | 22.72 X | 28.72 X |
| Price To Book | 2.97 X | 9.51 X |
| Price To Sales | 1.59 X | 11.42 X |
| Revenue | 10.98 B | 9.43 B |
| Gross Profit | 1.79 B | 27.38 B |
| EBITDA | 1.11 B | 3.9 B |
| Net Income | 827 M | 570.98 M |
| Cash And Equivalents | 3.65 B | 2.7 B |
| Cash Per Share | 8.71 X | 5.01 X |
| Total Debt | 2.54 B | 5.32 B |
| Debt To Equity | 0.34 % | 48.70 % |
| Current Ratio | 2.12 X | 2.16 X |
| Book Value Per Share | 15.79 X | 1.93 K |
| Cash Flow From Operations | 1.47 B | 971.22 M |
| Short Ratio | 3.80 X | 4.00 X |
| Earnings Per Share | 2.27 X | 3.12 X |
| Price To Earnings To Growth | 1.32 X | 4.89 X |
| Target Price | 56.22 | |
| Number Of Employees | 400 K | 18.84 K |
| Beta | 0.35 | -0.15 |
| Market Capitalization | 17.85 B | 19.03 B |
| Total Asset | 12.03 B | 29.47 B |
| Retained Earnings | 2.31 B | 9.33 B |
| Working Capital | 1.01 B | 1.48 B |
Note: Acquisition by Duoduo Huang of tradable shares of Yum China subject to Rule 16b-3 [view details]
Yum China Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Yum . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Yum China Buy or Sell Advice
When is the right time to buy or sell Yum China Holdings? Buying financial instruments such as Yum Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
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Check out Yum China Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Yum China. If investors know Yum will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Yum China listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.328 | Dividend Share 0.61 | Earnings Share 2.27 | Revenue Per Share 28.25 | Quarterly Revenue Growth 0.054 |
The market value of Yum China Holdings is measured differently than its book value, which is the value of Yum that is recorded on the company's balance sheet. Investors also form their own opinion of Yum China's value that differs from its market value or its book value, called intrinsic value, which is Yum China's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Yum China's market value can be influenced by many factors that don't directly affect Yum China's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Yum China's value and its price as these two are different measures arrived at by different means. Investors typically determine if Yum China is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Yum China's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.