Yum China stock: buy or sell?
March 31st, 2020
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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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
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.
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.
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 targetPredicting 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 ShareAfter 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared 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%
|2013||$6,910 M||-||$126 M1.8%||-|
|2014||$6,934 M||0.35%||$-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 M||15.06%||$398 M5.1%||-20.72%|
|2018||$8,415 M||8.32%||$708 M8.4%||77.89%|
|TTM||$8,498 M||0.99%||$642 M7.6%||-9.32%|
Quarterly financial resultsYum 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%.
|2017-Q2||$1,590 M||-||$107 M6.7%||-|
|2017-Q3||$2,038 M||28.18%||$211 M10.4%||97.20%|
|2017-Q4||$1,247 M||-38.81%||$-102 M-8.2%||-148.34%|
|2018-Q1||$2,221 M||78.11%||$288 M13.0%||-382.35%|
|2018-Q2||$2,068 M||-6.89%||$143 M6.9%||-50.35%|
|2018-Q3||$2,212 M||6.96%||$203 M9.2%||41.96%|
|2018-Q4||$1,914 M||-13.47%||$74 M3.9%||-63.55%|
|2019-Q1||$2,304 M||20.38%||$222 M9.6%||200.00%|
Yum China ownershipWhen 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:
|Market cap||$16.0 B|
|Total shares||375.9 M|
|Float shares||374.7 M|
|- Institutional holdings (%)||87.3%|
|- Insider holdings (%)||0.2%|
|Shares in short selling||0.0%|
Yum China summary
|Tuesday, March 31st, 2020|
|Day range||$41.33 - $43.76|
|Average true range||$3.02|
|50d mov avg||$43.55|
|100d mov avg||$44.70|
|200d mov avg||$44.38|
Yum China performancePerformance 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:
Yum China competitorsUnfortunately, 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
- Seeking AlphaBuy Yum China: Valuation Doesn't Reflect The Growth PotentialAugust 1, 2019
- InvestorPlaceYum China Holdings (YUMC) Beats Second-Quarter Earnings EstimatesAugust 1, 2019
- Seeking AlphaBuy The Fear In Yum ChinaJune 17, 2019
- InvestorPlaceAfter The Post-Earnings Pop, Upside for Yum China Stock Looks LimitedFebruary 7, 2019
- InvestorPlaceUgly Yum China Stock Is Likely to Fall FurtherSeptember 12, 2018