Last Updated: 16 Sep 2024
Executive Summary
Yum China Holdings Inc. (YUMC) is a leading restaurant operator in China, with a market capitalization of $13.3 billion. The company has a strong financial performance, with a profit margin of 7.61% and a return on equity of 13.3%. The stock is currently trading at $34.9, below its 52-week high of $57.29. Analysts have a positive outlook for the stock, with a consensus target price of $45.53.
Company Overview
Yum China Holdings Inc. is a franchisee of Yum! Brands, Inc. in China. The company owns and operates over 10,000 restaurants in China, including KFC, Pizza Hut, and Taco Bell. Yum China Holdings Inc. has a strong brand recognition and a loyal customer base in China.
Fundamental Analysis
Yum China Holdings Inc. has a strong financial performance. The company's revenue has grown by an average of 9% per year over the past five years. The company's profit margin has also improved in recent years, reaching 7.61% in 2023. Yum China Holdings Inc. has a strong balance sheet, with a debt-to-equity ratio of 0.5.
The company's key financial metrics are as follows:
Revenue: $11.04 billion
Net income: $833 million
Profit margin: 7.61%
Return on equity: 13.3%
Debt-to-equity ratio: 0.5
Technical Analysis
The technical analysis of Yum China Holdings Inc. stock shows that the stock is currently in a downtrend. The stock price has been falling since its 52-week high of $57.29 in January 2023. The stock is currently trading below its 50-day and 200-day moving averages.
The technical indicators are as follows:
Relative Strength Index (RSI): 30.5
Moving Average Convergence Divergence (MACD): -0.12
Stochastic oscillator: 14.5
Short Term Outlook
The short-term outlook for Yum China Holdings Inc. stock is negative. The stock is currently in a downtrend and the technical indicators are bearish. The stock is likely to continue to fall in the short term.
Long Term Outlook
The long-term outlook for Yum China Holdings Inc. stock is positive. The company has a strong financial performance and a loyal customer base in China. The company is also well-positioned to benefit from the growing Chinese consumer market. The stock is likely to recover from its current downtrend and reach its target price of $45.53 in the long term.
Analyst Recommendations
Analysts have a positive outlook for Yum China Holdings Inc. stock. The consensus target price for the stock is $45.53, which represents a potential upside of 30% from the current price. Six analysts have a strong buy rating on the stock, 17 have a buy rating, three have a hold rating, and none have a sell or strong sell rating.
