Yum China stock: buy or sell?

YUMC stock price: $42.63 0.76% At close on March 31st, 2020

Updated on:
March 31st, 2020

3

Yum China shares gained 0.76% to $42.63 today. On Friday YUMC plunged a hair-raising -5.85%.

Yum China Holdings, Inc. operates as a restaurant company in China. The company operates primarily through KFC and Pizza Hut Casual Dining segments.

Should I buy Yum China stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Yum China stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean YUMC will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Yum China stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't detect any rating for YUMC stock for the last 30 days.

Yum China stock analysis

Daily outlook

Yum China shares gained 0.76% to $42.63 today.

Yum China ended today at $42.63 and gained a tiny 0.76%. From a daily perspective, YUMC is in a short term uptrend after plotting its last bottom ($39.05, on Mar/20) higher than the previous bottom, and its last top ($46.25, on Wednesday) also over the previous top. Now trading in between its last bottom and last top YUMC might consolidate in a plain range, waiting to break out over $46.25 or down under $39.05. On January, YUMC hit new all time highs, pushing higher previous ATH of $49.25 recorded on January. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

YUMC stock chart (daily)

Weekly outlook

Yum China stayed stable a tight 0.16% this week.

Not so far away is the last price record Yum China marked early January, but since then it dropped a 15.75%. Since price and 40-weeks moving average lines crossed down late February, YUMC fell $-3.12 per share (-6.82%). Trading stocks that are under the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support.

YUMC stock chart (weekly)

Yum China stock price history

Yum China IPO was on October 17th, 2016 at $29.18 per share1. Since then, YUMC stock surged a 46.10%, with an average of 15.40% per year. If you had invested $1,000 in Yum China stock in 2016, it would worth $461.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Yum China stock historical price chart

YUMC stock reached all-time highs on January with a price of $50.60.

Yum China stock price target

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' YUMC stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we have not detected any price target for Yum China stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

After publishing its last earnings report on April, Yum China . As soon as we get its actual EPS from the earnings report, we will extend this report.
YUMC earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.3n/a
2017-Q3-n/a0.53n/a
2017-Q42018-02-050.17n/an/a
2018-Q12018-05-010.490.538.2%
2018-Q22018-08-010.330.369.1%
2018-Q32018-10-300.440.5115.9%
2018-Q42019-01-310.070.1271.4%
2019-Q12019-04-290.54n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw a very good gain of 8.32% to $8,415.00 million dollars. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) inched a 3.29% to 8.41%.

To have an up to date view of the financial situation of Yum China, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Yum China TTM sales up to March 2019 were $8,498.00 and income was $642.00 M dollars. If we compare this TTM figures with the last reported annuality, we can review Yum China business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, remained steady a slightly good 0.99%. Regarding profit margin, Yum China stayed stable -0.86% to 8.41%

YUMC annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$6,910 M-$126 M1.8%-
2014$6,934 M0.35%$-7.00 M-0.1%-105.56%
2015$6,909 M-0.36%$323 M4.7%-4,714.29%
2016$6,752 M-2.27%$502 M7.4%55.42%
2017$7,769 M15.06%$398 M5.1%-20.72%
2018$8,415 M8.32%$708 M8.4%77.89%
TTM $8,498 M0.99%$642 M7.6%-9.32%

Quarterly financial results

Yum China reported $2,304.00 million in sales for 2019-Q1, a 20.38% up compared to previous quarter. Reported quarter earnings marked $222.00 M with a profit margin of 9.64%. Profit margin soared a 5.77% compared to previous quarter when profit margin was 3.87%. When comparing turnover to same quarter last year, Yum China sales marked a decent increase and raised a 3.74%.
YUMC quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$1,590 M-$107 M6.7%-
2017-Q3$2,038 M28.18%$211 M10.4%97.20%
2017-Q4$1,247 M-38.81%$-102 M-8.2%-148.34%
2018-Q1$2,221 M78.11%$288 M13.0%-382.35%
2018-Q2$2,068 M-6.89%$143 M6.9%-50.35%
2018-Q3$2,212 M6.96%$203 M9.2%41.96%
2018-Q4$1,914 M-13.47%$74 M3.9%-63.55%
2019-Q1$2,304 M20.38%$222 M9.6%200.00%

Yum China ownership

When you are planning to buy shares of a stock, it's worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Yum China, 0.22% of all outstanding shares are owned by its staff.

Bearish positions for YUMC stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Yum China:

YUMC
Market cap$16.0 B
Total shares375.9 M
Float shares374.7 M
  - Institutional holdings (%)87.3%
  - Insider holdings (%)0.2%
Shares in short selling0.0%

Yum China summary

Tuesday, March 31st, 2020
Open$41.88
Close$42.63
Day range$41.33 - $43.76
Previous close$42.31
Session gain0.76%
Average true range$3.02
50d mov avg$43.55
100d mov avg$44.70
200d mov avg$44.38
Daily patternlt06a
Weekly pattern

Yum China performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We compared Yum China against in the following table:
Stock3m6m12m
YUMCYum China-11.72%-2.18%-3.44%

Yum China competitors

Unfortunately, we could not find any public company that could be defined as Yum China competitor. This doesn't mean Yum China does not have any competitor in the market, it's just we could not detected it.

    Latest Yum China stock news