YETI HOLDINGS INC (NYSE:YETI) Fits the Peter Lynch GARP Investment Model

Investment methods that combine growth possibility with fair prices have long drawn investors looking for lasting results. The Peter Lynch method, made famous in his book One Up on Wall Street, focuses on finding companies with good earnings growth, sound financial condition, and appealing prices, often called a growth at a reasonable price (GARP) system. Lynch's structure stays away from speculative high-growth companies in favor of businesses that show steady, controlled growth, backed by strong profitability and simple balance sheets. This system uses basic measurements to find stocks that can provide long-term worth without paying too much for future expectations.

Company Summary

YETI HOLDINGS INC (NYSE:YETI) plans, sells, and hands out outdoor and recreation items, including coolers, drinkware, and equipment. Based in Austin, Texas, the company has created a devoted customer group through long-lasting, high-end items that connect with outdoor users. Since its first public offering in 2018, YETI has widened its products in groups like hard and soft coolers, Rambler drinkware, and clothing, placing itself in a busy but increasing specialty area. The company's attention to quality and brand force gives a base for the consistent results appreciated by GARP investors.

Fit with Peter Lynch Standards

The Peter Lynch filter highlights lasting growth, fair pricing, and financial condition. YETI fits a number of these standards, making it a subject for more study by long-term investors.

• Earnings Per Share (EPS) Growth: YETI's five-year EPS growth figure is 18.24%, which sits inside Lynch's preferred span of 15% to 30%. This shows a background of good, controlled growth without the extreme growth that Lynch saw as unstable.
• PEG Ratio: The stock's PEG ratio, using past five-year growth, is 0.88. Lynch liked companies with a PEG ratio at or under 1, as it hints the market could be pricing the stock low compared to its earnings growth path.
• Debt-to-Equity Ratio: YETI keeps a small debt-to-equity ratio of 0.10, much lower than the filter's limit of 0.6. Lynch focused on companies with little debt, as it lowers money risk and helps steadiness during weak economic times.
• Current Ratio: With a current ratio of 2.16, YETI shows good short-term money availability, going beyond Lynch's need of 1.0. This means the company can easily meet its immediate responsibilities.
• Return on Equity (ROE): YETI's ROE of 22.82% goes over the 15% least amount Lynch wanted, showing good use of owner equity and high profit generation.

These measurements match Lynch's idea of putting money into well-managed companies with established growth, fair prices, and good finances. By fitting these standards, YETI matches the description of a business that might build worth over years without depending on speculative fads.

Basic Condition and Results

YETI's wider basic picture, as shown in its full basic report, supports its attraction. The company gets a good total score, with special force in profitability and financial condition. Its return on invested capital (ROIC) of 17.99% and profit levels sit with the top in the leisure items field, pointing to effective work and price strength. At the same time, a high Altman-Z score and small debt amounts indicate a tough balance sheet. While recent growth has become slower, the company's past results and careful money management give a base for steadiness.

Possibilities and Points

For investors, YETI stands for a possible GARP chance because of its strong brand, devoted customer group, and fit with Lynch's rules. The company's attention to item newness and direct sales to buyers could help future growth, while its share repurchase plan, a Lynch preference, shows belief from leaders. Still, investors should see that growth figures have decreased lately, and the company works in a busy area. As with any investment, complete personal checking is needed to judge if YETI's business plan and field position match long-term goals.

Looking at Like Chances

YETI was found using a stock filter built on Peter Lynch's plan. Investors curious about seeing other companies that meet these standards can look at the filter here for more ideas and study beginning places.

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Disclaimer: This article is for information reasons only and does not make up investment guidance. The note of any security is not a suggestion to purchase or sell. Investors should do their own study and talk with a money advisor before making investment choices.