Yum China Holdings, Inc. (YUMC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Texas Roadhouse, Inc.

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Aramark

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Yum China Holdings, Inc.

Yum! Brands, Inc.

McDonald's Corp.

The Wendy's Co.

Domino's Pizza, Inc.

Starbucks Corp.

Wingstop, Inc.

Why is Yum China Holdings, Inc. ?

High Management Efficiency with a high ROE of 14.49%

Company has a low Debt to Equity ratio (avg) at times

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 14.49%

Flat results in Jun 25

INTEREST(9M) At USD 1 MM has Grown at inf%

With ROE of 17.16%, it has a expensive valuation with a 2.93 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -3.70%, its profits have risen by 8.9% ; the PEG ratio of the company is 1

High Institutional Holdings at 87.74%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.70% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yum China Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Yum China Holdings, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Yum China Holdings, Inc.

-3.63%

1.13

33.09%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.38%

EBIT Growth (5y)

13.10%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

1.79

Tax Ratio

27.04%

Dividend Payout Ratio

38.25%

Pledged Shares

Institutional Holding

82.60%

ROCE (avg)

32.11%

ROE (avg)

14.49%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.75

EV to EBIT

12.91

EV to EBITDA

9.86

EV to Capital Employed

4.68

EV to Sales

1.60

PEG Ratio

1.53

Dividend Yield

208.66%

ROCE (Latest)

36.22%

ROE (Latest)

19.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,486.25 MM

ROCE(HY)

Highest at 16.73%

RAW MATERIAL COST(Y)

Fallen by -6.05% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 57.41

-9What is not working for the Company

INTEREST(9M)

At USD 1 MM has Grown at inf%

PRE-TAX PROFIT(Q)

At USD 220 MM has Fallen at -36.96%

NET PROFIT(Q)

At USD 150.19 MM has Fallen at -37.3%

CASH AND EQV(HY)

Lowest at USD 3,527 MM

Here's what is working for Yum China Holdings, Inc.

Operating Cash Flow

Highest at USD 1,486.25 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 57.41

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -6.05% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Yum China Holdings, Inc.

Interest

At USD 1 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

At USD 220 MM has Fallen at -36.96%

over average net sales of the previous four periods of USD 349 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 150.19 MM has Fallen at -37.3%

over average net sales of the previous four periods of USD 239.53 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 3,527 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents