Despite its impressive fundamentals,YETI HOLDINGS INC (NYSE:YETI) remains undervalued.

Take a closer look at YETI HOLDINGS INC (NYSE:YETI), a remarkable value stock uncovered by our stock screener. YETI excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Evaluating Valuation: YETI

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. YETI boasts a 8 out of 10:

• With a Price/Earnings ratio of 9.95, the valuation of YETI can be described as very reasonable.
• Based on the Price/Earnings ratio, YETI is valued cheaply inside the industry as 96.67% of the companies are valued more expensively.
• YETI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.29.
• The Price/Forward Earnings ratio is 9.51, which indicates a very decent valuation of YETI.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of YETI indicates a rather cheap valuation: YETI is cheaper than 83.33% of the companies listed in the same industry.
• YETI is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.42, which is the current average of the S&P500 Index.
• 83.33% of the companies in the same industry are more expensive than YETI, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of YETI indicates a rather cheap valuation: YETI is cheaper than 83.33% of the companies listed in the same industry.
• The excellent profitability rating of YETI may justify a higher PE ratio.

Profitability Assessment of YETI

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, YETI has achieved a 10:

• With an excellent Return On Assets value of 13.66%, YETI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• YETI's Return On Equity of 23.74% is amongst the best of the industry. YETI outperforms 90.00% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 20.67%, YETI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for YETI is significantly above the industry average of 7.97%.
• The last Return On Invested Capital (20.67%) for YETI is above the 3 year average (18.12%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 9.60%, YETI belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
• In the last couple of years the Profit Margin of YETI has grown nicely.
• Looking at the Operating Margin, with a value of 13.60%, YETI belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
• YETI's Operating Margin has improved in the last couple of years.
• YETI has a better Gross Margin (58.11%) than 90.00% of its industry peers.
• In the last couple of years the Gross Margin of YETI has grown nicely.

Looking at the Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. YETI has achieved a 8 out of 10:

• YETI has an Altman-Z score of 5.64. This indicates that YETI is financially healthy and has little risk of bankruptcy at the moment.
• YETI's Altman-Z score of 5.64 is amongst the best of the industry. YETI outperforms 86.67% of its industry peers.
• The Debt to FCF ratio of YETI is 0.36, which is an excellent value as it means it would take YETI, only 0.36 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of YETI (0.36) is better than 83.33% of its industry peers.
• A Debt/Equity ratio of 0.10 indicates that YETI is not too dependend on debt financing.
• YETI has a Current Ratio of 2.18. This indicates that YETI is financially healthy and has no problem in meeting its short term obligations.

Evaluating Growth: YETI

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. YETI boasts a 5 out of 10:

• The Earnings Per Share has grown by an impressive 22.22% over the past year.
• Measured over the past years, YETI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.24% on average per year.
• The Revenue has grown by 10.31% in the past year. This is quite good.
• The Revenue has been growing by 14.90% on average over the past years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of YETI contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.