Key Facts About Yum China – A Must-Know for Investors

We're taking a closer look at Yum China today, as the chatter surrounding the stock has increased notably in the last few weeks. Today, its shares moved -1.4% compared to 1.0% for the S&P 500. Increased investor interest and volatility surrounding the stock are not reason enough to buy in -- you should first perform your own due diligence. Here are some figures that can get you started:

  • Yum China Holdings, Inc. owns, operates, and franchises restaurants in the People's Republic of China.

  • YUMC has an average analyst rating of buy and is -36.46% away from its mean target price of $62.87 per share

  • Its trailing 12 month earnings per share (EPS) is $1.85

  • Yum China has a trailing 12 month Price to Earnings (P/E) ratio of 21.6 while the S&P 500 average is 15.97

  • Its forward earnings per share (EPS) is $2.23 and its forward P/E ratio is 17.9

  • YUMC has a Price to Earnings Growth (PEG) ratio of 0.58, which shows the company is very undervalued compared to its earnings growth estimates.

  • The company has a Price to Book (P/B) ratio of 2.52 in contrast to the S&P 500's average ratio of 2.95

  • Yum China is part of the Consumer Discretionary sector, which has an average P/E ratio of 22.96 and an average P/B of 4.24

  • Yum China has on average reported free cash flows of $705.5 Million over the last four years, during which time they have grown by an an average of -2.3%

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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