YELP INC (YELP)
US9858171054 - Common Stock
Taking everything into account, YELP scores 7 out of 10 in our fundamental rating. YELP was compared to 68 industry peers in the Interactive Media & Services industry. YELP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. YELP has a decent growth rate and is not valued too expensively. With these ratings, YELP could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
YELP had positive earnings in the past year.
YELP had a positive operating cash flow in the past year.
YELP had positive earnings in 4 of the past 5 years.
Each year in the past 5 years YELP had a positive operating cash flow.
1.2 Ratios
YELP's Return On Assets of 9.77% is amongst the best of the industry. YELP outperforms 85.07% of its industry peers.
YELP has a better Return On Equity (13.22%) than 85.07% of its industry peers.
The Return On Invested Capital of YELP (10.08%) is better than 85.07% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for YELP is below the industry average of 9.61%.
The last Return On Invested Capital (10.08%) for YELP is above the 3 year average (6.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.77% | ||
| ROE | 13.22% | ||
| ROIC | 10.08% |
ROA(3y)5.71%
ROA(5y)3.85%
ROE(3y)7.88%
ROE(5y)5.35%
ROIC(3y)6.29%
ROIC(5y)N/A
1.3 Margins
YELP's Profit Margin of 7.41% is fine compared to the rest of the industry. YELP outperforms 73.13% of its industry peers.
In the last couple of years the Profit Margin of YELP has grown nicely.
The Operating Margin of YELP (8.50%) is better than 74.63% of its industry peers.
YELP's Operating Margin has improved in the last couple of years.
YELP's Gross Margin of 91.46% is amongst the best of the industry. YELP outperforms 91.04% of its industry peers.
YELP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.5% | ||
| PM (TTM) | 7.41% | ||
| GM | 91.46% |
OM growth 3YN/A
OM growth 5Y25.34%
PM growth 3YN/A
PM growth 5Y4.77%
GM growth 3Y-0.72%
GM growth 5Y-0.52%
2. Health
2.1 Basic Checks
YELP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for YELP has been reduced compared to 1 year ago.
YELP has less shares outstanding than it did 5 years ago.
There is no outstanding debt for YELP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 6.89 indicates that YELP is not in any danger for bankruptcy at the moment.
YELP has a Altman-Z score of 6.89. This is amongst the best in the industry. YELP outperforms 85.07% of its industry peers.
YELP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.89 |
ROIC/WACC1.07
WACC9.44%
2.3 Liquidity
A Current Ratio of 3.55 indicates that YELP has no problem at all paying its short term obligations.
YELP has a better Current ratio (3.55) than 68.66% of its industry peers.
A Quick Ratio of 3.55 indicates that YELP has no problem at all paying its short term obligations.
YELP has a better Quick ratio (3.55) than 68.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.55 | ||
| Quick Ratio | 3.55 |
3. Growth
3.1 Past
YELP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 164.71%, which is quite impressive.
The Earnings Per Share has been growing by 16.47% on average over the past years. This is quite good.
The Revenue has grown by 12.02% in the past year. This is quite good.
YELP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.24% yearly.
EPS 1Y (TTM)164.71%
EPS 3YN/A
EPS 5Y16.47%
EPS growth Q2Q32.14%
Revenue 1Y (TTM)12.02%
Revenue growth 3Y15.27%
Revenue growth 5Y7.24%
Revenue growth Q2Q10.77%
3.2 Future
YELP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.63% yearly.
Based on estimates for the next years, YELP will show a small growth in Revenue. The Revenue will grow by 3.95% on average per year.
EPS Next Y18.91%
EPS Next 2Y25.92%
EPS Next 3Y27.14%
EPS Next 5Y22.63%
Revenue Next Year7.41%
Revenue Next 2Y7.6%
Revenue Next 3Y6.83%
Revenue Next 5Y3.95%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
YELP is valuated quite expensively with a Price/Earnings ratio of 29.22.
Based on the Price/Earnings ratio, YELP is valued a bit cheaper than 65.67% of the companies in the same industry.
YELP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.80.
The Price/Forward Earnings ratio is 24.58, which indicates a rather expensive current valuation of YELP.
64.18% of the companies in the same industry are more expensive than YELP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.27. YELP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.22 | ||
| Fwd PE | 24.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YELP is valued a bit cheaper than 76.12% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, YELP is valued cheaper than 91.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.64 | ||
| EV/EBITDA | 13.62 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of YELP may justify a higher PE ratio.
A more expensive valuation may be justified as YELP's earnings are expected to grow with 27.14% in the coming years.
PEG (NY)1.55
PEG (5Y)1.77
EPS Next 2Y25.92%
EPS Next 3Y27.14%
5. Dividend
5.1 Amount
No dividends for YELP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
YELP INC
NYSE:YELP (4/19/2024, 8:38:12 AM)
39.45
+0.04 (+0.1%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.22 | ||
| Fwd PE | 24.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.55
PEG (5Y)1.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.77% | ||
| ROE | 13.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.5% | ||
| PM (TTM) | 7.41% | ||
| GM | 91.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.55 | ||
| Quick Ratio | 3.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)164.71%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y18.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.02%
Revenue growth 3Y15.27%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y