YETI HOLDINGS INC (NYSE:YETI) – A Strong Candidate for GARP Investors

YETI HOLDINGS INC (NYSE:YETI) emerged from our Peter Lynch-inspired screen as a stock with attractive growth potential at a reasonable valuation. The company, known for its premium outdoor and recreation products, demonstrates solid financial health, profitability, and sustainable growth—key traits for long-term investors seeking quality at a fair price.

Why YETI Fits the GARP Approach

• Earnings Growth: YETI has delivered a five-year average EPS growth of 18.24%, comfortably within Lynch’s preferred range of 15-30%. This indicates steady, sustainable expansion rather than overheated growth.
• Reasonable Valuation: The stock trades at a P/E of 11.08, below both the industry average (52.22) and the S&P 500 (25.91). Its PEG ratio (based on past growth) is -0.43, though negative due to temporary factors, while its forward P/E of 11.73 remains attractive.
• Strong Profitability: With a Return on Equity (ROE) of 23.09% and a gross margin of 58.18%, YETI outperforms most peers in the leisure products industry.
• Healthy Balance Sheet: A Debt/Equity ratio of 0.09 and a Current Ratio of 2.58 reflect minimal reliance on debt and ample liquidity to cover short-term obligations.
• Cash Flow & Efficiency: The company generates consistent operating cash flow and boasts a high Return on Invested Capital (ROIC) of 19.59%, signaling effective capital allocation.

Fundamental Snapshot

YETI’s full fundamental report highlights an overall score of 7/10, with top marks in profitability (10/10) and financial health (8/10). While near-term growth expectations are modest (EPS growth forecast at 6.82%), its historical performance and strong margins suggest resilience.

Our Peter Lynch Strategy screener lists more stocks meeting these criteria, updated daily.

Disclaimer

This is not investing advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.