why Yum China Holdings Inc [YUMC] is a Good Choice for Investors After New Price Target of $56.25

Yum China Holdings Inc [NYSE: YUMC] plunged by -$1.18 during the normal trading session on Friday and reaching a high of $41.01 during the day while it closed the day at $40.93. The company report on December 21, 2023 at 4:00 AM that Yum China Leads the Restaurant & Leisure Industry for the Fourth Consecutive Year on the Dow Jones Sustainability Index.

Yum China Holdings, Inc. (the “Company” or “Yum China”, NYSE: YUMC and HKEX: 9987) today announced that the Company has been ranked number one globally for the Restaurant & Leisure Facilities Industry in the S&P Global 2023 Corporate Sustainability Assessment (CSA). For the fourth consecutive year, Yum China has been selected as a member of both the Dow Jones Sustainability Indices (DJSI): World Index (DJSI World) and Emerging Market Index (DJSI Emerging Markets). It reflects the Company’s unwavering commitment to environmental, social, and governance (ESG).

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Yum China is the only consumer services company from the Chinese mainland to be selected as a member of DJSI World. Yum China achieved the highest score among industry peers in the S&P Global CSA based on three dimensions: governance & economic, environmental, and social. The Company also received a peer-leading S&P Global ESG score..

Yum China Holdings Inc stock has also loss -3.19% of its value over the past 7 days. However, YUMC stock has declined by -22.83% in the 3 months of the year. Over the past six months meanwhile, it has lost -26.37% and lost -3.54% year-on date.

The market cap for YUMC stock reached $16.93 billion, with 419.00 million shares outstanding and 400.68 million shares in the current float. Compared to the average trading volume of 2.62M shares, YUMC reached a trading volume of 9005260 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 $56.25 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 1.44. 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.

Deutsche Bank have made an estimate for Yum China Holdings Inc shares, keeping their opinion on the stock as Buy, with their previous recommendation back on December 19, 2023.

The Average True Range (ATR) for Yum China Holdings Inc is set at 1.16, with the Price to Sales ratio for YUMC stock in the period of the last 12 months amounting to 1.60. The Price to Book ratio for the last quarter was 2.58, with the Price to Cash per share for the same quarter was set at 7.57. Price to Free Cash Flow for YUMC in the course of the last twelve months was 23.61 with Quick ratio for the last quarter at 1.42.

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 -3.19. With this latest performance, YUMC shares gained by 0.15% in over the last four-week period, additionally sinking by -26.37% over the last 6 months – not to mention a drop of -30.21% 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 40.46, with the RSI for the last a single of trading hit 40.03, and the three-weeks RSI is set at 39.44 for Yum China Holdings Inc [YUMC]. The present Moving Average for the last 50 days of trading for this stock 43.85, while it was recorded at 42.17 for the last single week of trading, and 54.33 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 +8.71 and a Gross Margin at +13.90. Yum China Holdings Inc’s Net Margin is presently recorded at +4.62.

Return on Total Capital for YUMC is now 8.20, given the latest momentum, and Return on Invested Capital for the company is 4.96. Return on Equity for this stock inclined to 6.53, with Return on Assets sitting at 3.53. When it comes to the capital structure of this company, Yum China Holdings Inc [YUMC] has a Total Debt to Total Equity ratio set at 36.96. Additionally, YUMC Total Debt to Total Capital is recorded at 26.99, with Total Debt to Total Assets ending up at 20.26. Long-Term Debt to Equity for the company is recorded at 30.05, with the Long-Term Debt to Total Capital now at 21.94.

Reflecting on the efficiency of the workforce at the company, Yum China Holdings Inc [YUMC] managed to generate an average of $1,105 per employee. Receivables Turnover for the company is 59.25 with a Total Asset Turnover recorded at a value of 0.76.Yum China Holdings Inc’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.42 and a Current Ratio set at 1.59.

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 33.79%.

Yum China Holdings Inc [YUMC]: Institutional Ownership

The top three institutional holders of YUMC stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in YUMC stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in YUMC stock with ownership which is approximately 5.8325%.