Investment firms might be wanting to acquire Yum China Holdings Inc., the NYSE-listed operator of KFC and Pizza Hut in mainland China, according to some reports.
China’s Hillhouse Capital Group is reportedly eyeing the fast-food operator as suggested by three people familiar with the matter, according to a report by The Information. Another report by Bloomberg suggested that global investment firm KKR & Co. is also exploring takeover possibilities according to some people who asked not to be identified because details are private. However, reports suggest that talks are still in their nascent stages and no one could confirm if there would eventually be a deal or not.
Yum China operates more than 8,100 restaurants in over 1,200 cities and towns across mainland China. It spun out of China’s Yum! Brands less than two years ago. Yum China has been challenged by less-than-expected sales growth in recent times, despite the firm’s introducing mobile app features and other marketing strategies.
The Moving Average Convergence Divergence (MACD) for YUM turned positive on April 22, 2024. Looking at past instances where YUM's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 18, 2024. You may want to consider a long position or call options on YUM as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where YUM advanced for three days, in of 349 cases, the price rose further within the following month. The odds of a continued upward trend are .
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where YUM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
YUM broke above its upper Bollinger Band on April 23, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (4.103). P/E Ratio (25.324) is within average values for comparable stocks, (55.594). Projected Growth (PEG Ratio) (2.368) is also within normal values, averaging (2.024). Dividend Yield (0.018) settles around the average of (0.035) among similar stocks. P/S Ratio (5.701) is also within normal values, averaging (3.312).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. YUM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company that owns and franchises quick-service restaurants
Industry Restaurants