YUM! Brands, Inc. [NYSE:YUM]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For YUM! Brands, Inc. [YUM], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in December. On average, stock market experts give YUM an Outperform rating. Its stock price has been found in the range of 77.09 to 104.47. This is compared to its latest closing price of $100.87.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for YUM! Brands, Inc. [YUM] is sitting at 2.41. This is compared to 1 month ago, when its average rating was 2.38.
For the quarter ending in Mar-19 YUM! Brands, Inc. [YUM] generated $1.25 billion in sales. That’s 0.14% higher than the average estimate of $1.25 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Thu 1 Aug (In 76 Days).
Fundamental Analysis of YUM! Brands, Inc. [YUM]
Now let’s turn to look at profitability: with a current Operating Margin for YUM! Brands, Inc. [YUM] sitting at +31.14 and its Gross Margin at +46.73, this company’s Net Margin is now 24.50%. These measurements indicate that YUM! Brands, Inc. [YUM] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 63.07, and its Return on Invested Capital has reached 90.10%. Its Return on Assets is 32.67.
Similarly, its Total Debt to Total Capital is 469.34, while its Total Debt to Total Assets stands at 243.87.
What about valuation? This company’s Enterprise Value to EBITDA is 20.81 and its Total Debt to EBITDA Value is 5.15. The Enterprise Value to Sales for this firm is now 7.30, and its Total Debt to Enterprise Value stands at 0.25.
Shifting the focus to workforce efficiency, YUM! Brands, Inc. [YUM] earns $167,294 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 9.71 and its Total Asset Turnover is 1.20. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.93 and its Current Ratio is 0.93. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
YUM! Brands, Inc. [YUM] has 308.00M shares outstanding, amounting to a total market cap of $31.07B. Its stock price has been found in the range of 77.09 to 104.47. At its current price, it has moved by -3.15% from its 52-week high, and it has moved 31.25% from its 52-week low.
This stock’s Beta value is currently 0.58, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 49.66. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is YUM! Brands, Inc. [YUM] a Reliable Buy?
Shares of YUM! Brands, Inc. [YUM], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.