Yum China Holdings Inc. [YUMC] is -12.60% lower this YTD. Is it still time to buy?

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Yum China Holdings Inc. [NYSE: YUMC] closed the trading session at $43.56 on 06/09/22. The day’s price range saw the stock hit a low of $41.54, while the highest price level was $43.92. The company report on May 11, 2022 that Update on Dispute about Royalties on Delivery and Aggregator Platform Fees with Yum! Brands.


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Yum China Holdings, Inc. (the “Company” or “Yum China”) (NYSE: YUMC and HKEX: 9987) today reported that it has invoked the dispute resolution process with Yum! Brands, Inc. (“YUM”), pursuant to the Master License Agreement dated October 31, 2016, to resolve a disagreement over royalties charged on delivery and aggregator platform fees.

The Company believes, pursuant to the Master License Agreement, delivery and aggregator platform fees should not be subject to royalties. The Company has informed YUM that the Company will stop paying royalties on such fees. The royalty fee amount in dispute for the first quarter ended March 31, 2022 is approximately $2 million. The Company may also seek to recoup additional royalty fee payments from November 1, 2016 to December 31, 2021 with respect to such delivery-related fees. The Company does not expect the dispute resolution process to have a material impact on its operations, financial results and its long term partnership with YUM.

The stocks have a year to date performance of -12.60 percent and weekly performance of -2.70 percent. The stock has been moved at -15.79 percent over the last six months. The stock has performed 11.95 percent around the most recent 30 days and changed -1.80 percent over the most recent 3-months.

If compared to the average trading volume of 2.83M shares, YUMC reached to a volume of 7004501 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Yum China Holdings Inc. [YUMC]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for YUMC shares is $52.82 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on YUMC stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Macquarie have made an estimate for Yum China Holdings Inc. shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on September 15, 2021. While these analysts kept the previous recommendation, Atlantic Equities raised their target price to Overweight. The new note on the price target was released on April 06, 2021, representing the official price target for Yum China Holdings Inc. stock.

The Average True Range (ATR) for Yum China Holdings Inc. is set at 2.36, with the Price to Sales ratio for YUMC stock in the period of the last 12 months amounting to 1.90. The Price to Book ratio for the last quarter was 2.69, with the Price to Cash per share for the same quarter was set at 8.45. Price to Free Cash Flow for YUMC in the course of the last twelve months was 497.65 with Quick ratio for the last quarter at 1.90.

YUMC stock trade performance evaluation

Yum China Holdings Inc. [YUMC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.70. With this latest performance, YUMC shares gained by 11.95% in over the last four-week period, additionally sinking by -15.79% over the last 6 months – not to mention a drop of -36.99% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for YUMC stock in for the last two-week period is set at 51.91, with the RSI for the last a single of trading hit 49.93, and the three-weeks RSI is set at 51.75 for Yum China Holdings Inc. [YUMC]. The present Moving Average for the last 50 days of trading for this stock 41.85, while it was recorded at 45.14 for the last single week of trading, and 49.70 for the last 200 days.

Yum China Holdings Inc. [YUMC]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Yum China Holdings Inc. [YUMC] shares currently have an operating margin of +8.55 and a Gross Margin at +13.83. Yum China Holdings Inc.’s Net Margin is presently recorded at +10.05.

Return on Equity for this stock inclined to 14.93, with Return on Assets sitting at 8.22.

Yum China Holdings Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.90 and a Current Ratio set at 2.00.

Earnings per share (EPS) analysis for Yum China Holdings Inc. [YUMC] stock

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for YUMC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Yum China Holdings Inc. go to 10.00%.

Yum China Holdings Inc. [YUMC]: Insider Ownership positions

There are presently around $15,923 million, or 86.20% of YUMC stock, in the hands of institutional investors. The top three institutional holders of YUMC stocks are: INVESCO LTD. with ownership of 40,931,058, which is approximately 0.5% of the company’s market cap and around 0.10% of the total institutional ownership; BLACKROCK INC., holding 32,024,276 shares of the stock with an approximate value of $1.52 billion in YUMC stocks shares; and JPMORGAN CHASE & CO, currently with $870.18 million in YUMC stock with ownership of nearly -1.988% of the company’s market capitalization.

Positions in Yum China Holdings Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 260 institutional holders increased their position in Yum China Holdings Inc. [NYSE:YUMC] by around 24,005,511 shares. Additionally, 393 investors decreased positions by around 30,593,526 shares, while 168 investors held positions by with 281,391,119 shares. The mentioned changes placed institutional holdings at 335,990,156 shares, according to the latest SEC report filing. YUMC stock had 60 new institutional investments in for a total of 2,353,495 shares, while 143 institutional investors sold positions of 9,774,045 shares during the same period.

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