YUMC is a stock that is puzzling me a lot lately. I acknowledge/understand the China market has its issues, the regulatory issues and overall China outlook/risk.
However, when I review the financials and metrics- I see a P/E ratio around 15, consistent/growing EPS the past 3 years (and certainly overall growing since 2014), price to book ratio of 1.75, debt to equity ratio around 0.7, about $700M of free cash flow and RSI of 39 (better than 70% of the industry).
Yes- the short term moving indicators show a strong sell- but I'm thinking long term. However, all the financial metrics point to this being a large value potential especially with the dividend.
I have a pretty small investment started (19 shares averaged at $34 a share). With it trading close to $30- why are people now jumping on this long term with the positive metrics?
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