YETI HOLDINGS INC (NYSE:YETI) - A Strong Candidate for Long-Term Growth Investors

YETI HOLDINGS INC (NYSE:YETI) stands out as a compelling pick for investors seeking growth at a reasonable price (GARP). The company, known for its premium outdoor and recreation products, meets key criteria from Peter Lynch’s investment strategy, balancing solid growth with sound financial health and attractive valuation.

Why YETI Fits the GARP Approach

• Strong Earnings Growth: YETI has delivered an impressive 5-year average EPS growth of 18.24%, well above the 15% threshold in Lynch’s strategy. This signals consistent profitability and expansion.
• Reasonable Valuation: With a PEG ratio of 0.60 (below Lynch’s preferred 1.0), the stock is priced attractively relative to its growth. The P/E ratio of 11.03 further supports its undervaluation compared to industry peers.
• Healthy Financials: The company maintains a low debt-to-equity ratio of 0.09, far below the 0.6 limit Lynch recommends. Its current ratio of 2.58 indicates strong liquidity to cover short-term obligations.
• High Profitability: YETI’s return on equity (ROE) of 23.09% exceeds the 15% benchmark, reflecting efficient use of shareholder capital.

Fundamental Strengths

YETI’s financial health is robust, with high marks for profitability and solvency. The company generates strong cash flow, maintains industry-leading margins, and has reduced its share count over time—a positive sign for shareholders. While future growth is expected to moderate, its historical performance and disciplined financial management provide a solid foundation.

For a deeper look, review the full fundamental analysis of YETI.

Our Peter Lynch Strategy screener lists more stocks that align with this approach and is updated regularly.

Disclaimer

This is not investing advice. The observations here are based on current data, but investors should conduct their own research before making decisions.