YELP INC (YELP) Stock Fundamental Analysis
NYSE:YELP - New York Stock Exchange, Inc. - US9858171054 - Common Stock - Currency: USD
Overall YELP gets a fundamental rating of 7 out of 10. We evaluated YELP against 71 industry peers in the Interactive Media & Services industry. YELP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. YELP may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make YELP suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year YELP was profitable.
In the past year YELP had a positive cash flow from operations.
Of the past 5 years YELP 4 years were profitable.
YELP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.52%, YELP belongs to the top of the industry, outperforming 90.14% of the companies in the same industry.
YELP has a Return On Equity of 19.65%. This is amongst the best in the industry. YELP outperforms 91.55% of its industry peers.
YELP has a Return On Invested Capital of 18.94%. This is amongst the best in the industry. YELP outperforms 90.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for YELP is in line with the industry average of 12.03%.
The last Return On Invested Capital (18.94%) for YELP is above the 3 year average (11.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.52% | ||
| ROE | 19.65% | ||
| ROIC | 18.94% |
ROA(3y)8.95%
ROA(5y)5.79%
ROE(3y)12.07%
ROE(5y)7.84%
ROIC(3y)11.39%
ROIC(5y)N/A
1.3 Margins
YELP has a better Profit Margin (9.95%) than 80.28% of its industry peers.
YELP's Profit Margin has improved in the last couple of years.
YELP has a better Operating Margin (12.67%) than 76.06% of its industry peers.
In the last couple of years the Operating Margin of YELP has grown nicely.
The Gross Margin of YELP (90.88%) is better than 91.55% of its industry peers.
In the last couple of years the Gross Margin of YELP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.67% | ||
| PM (TTM) | 9.95% | ||
| GM | 90.88% |
OM growth 3Y54.25%
OM growth 5Y26.2%
PM growth 3Y34.72%
PM growth 5Y18.46%
GM growth 3Y-0.43%
GM growth 5Y-0.56%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so YELP is creating value.
YELP has less shares outstanding than it did 1 year ago.
The number of shares outstanding for YELP has been reduced compared to 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
YELP has an Altman-Z score of 6.15. This indicates that YELP is financially healthy and has little risk of bankruptcy at the moment.
YELP has a better Altman-Z score (6.15) than 80.28% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.15 |
ROIC/WACC2.09
WACC9.05%
2.3 Liquidity
YELP has a Current Ratio of 2.89. This indicates that YELP is financially healthy and has no problem in meeting its short term obligations.
YELP has a better Current ratio (2.89) than 70.42% of its industry peers.
YELP has a Quick Ratio of 2.89. This indicates that YELP is financially healthy and has no problem in meeting its short term obligations.
YELP has a better Quick ratio (2.89) than 70.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.31% over the past year.
YELP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.97% yearly.
The Revenue has been growing slightly by 5.93% in the past year.
The Revenue has been growing slightly by 6.84% on average over the past years.
EPS 1Y (TTM)36.31%
EPS 3Y56.59%
EPS 5Y24.97%
EPS Q2Q%110%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%7.75%
3.2 Future
Based on estimates for the next years, YELP will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.17% on average per year.
The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y29.78%
EPS Next 2Y23.2%
EPS Next 3Y14.42%
EPS Next 5Y18.17%
Revenue Next Year5.46%
Revenue Next 2Y4.95%
Revenue Next 3Y4.74%
Revenue Next 5Y3.74%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
The Price/Earnings ratio is 16.55, which indicates a correct valuation of YELP.
YELP's Price/Earnings ratio is a bit cheaper when compared to the industry. YELP is cheaper than 71.83% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, YELP is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.15 indicates a correct valuation of YELP.
Based on the Price/Forward Earnings ratio, YELP is valued a bit cheaper than 76.06% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, YELP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 12.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YELP is valued cheaply inside the industry as 83.10% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of YELP indicates a rather cheap valuation: YELP is cheaper than 87.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.37 | ||
| EV/EBITDA | 7.76 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of YELP may justify a higher PE ratio.
YELP's earnings are expected to grow with 14.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)0.66
EPS Next 2Y23.2%
EPS Next 3Y14.42%
5. Dividend
5.1 Amount
YELP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
35.41
-0.41 (-1.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.17%
Inst Owner Change-1.76%
Ins Owners5.26%
Ins Owner Change1.94%
Market Cap2.26B
Analysts54.12
Price Target39.41 (11.3%)
Short Float %5.99%
Short Ratio4.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.31%
Min EPS beat(2)7.11%
Max EPS beat(2)15.5%
EPS beat(4)4
Avg EPS beat(4)37.97%
Min EPS beat(4)7.11%
Max EPS beat(4)98.18%
EPS beat(8)7
Avg EPS beat(8)69.28%
EPS beat(12)9
Avg EPS beat(12)127.62%
EPS beat(16)13
Avg EPS beat(16)665.94%
Revenue beat(2)1
Avg Revenue beat(2)0.43%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)1.39%
Revenue beat(4)1
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)1.39%
Revenue beat(8)2
Avg Revenue beat(8)-0.64%
Revenue beat(12)4
Avg Revenue beat(12)-0.45%
Revenue beat(16)7
Avg Revenue beat(16)-0.11%
PT rev (1m)0.98%
PT rev (3m)-3.4%
EPS NQ rev (1m)-4.35%
EPS NQ rev (3m)-5.16%
EPS NY rev (1m)-0.69%
EPS NY rev (3m)-4.38%
Revenue NQ rev (1m)-1.8%
Revenue NQ rev (3m)-1.84%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 12.15 | ||
| P/S | 1.57 | ||
| P/FCF | 8.37 | ||
| P/OCF | 7.27 | ||
| P/B | 3.11 | ||
| P/tB | 4.2 | ||
| EV/EBITDA | 7.76 |
EPS(TTM)2.14
EY6.04%
EPS(NY)2.91
Fwd EY8.23%
FCF(TTM)4.23
FCFY11.95%
OCF(TTM)4.87
OCFY13.76%
SpS22.52
BVpS11.4
TBVpS8.42
PEG (NY)0.56
PEG (5Y)0.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.52% | ||
| ROE | 19.65% | ||
| ROCE | 22.69% | ||
| ROIC | 18.94% | ||
| ROICexc | 31.79% | ||
| ROICexgc | 52.77% | ||
| OM | 12.67% | ||
| PM (TTM) | 9.95% | ||
| GM | 90.88% | ||
| FCFM | 18.78% |
ROA(3y)8.95%
ROA(5y)5.79%
ROE(3y)12.07%
ROE(5y)7.84%
ROIC(3y)11.39%
ROIC(5y)N/A
ROICexc(3y)21.01%
ROICexc(5y)N/A
ROICexgc(3y)30.75%
ROICexgc(5y)N/A
ROCE(3y)13.64%
ROCE(5y)N/A
ROICexcg growth 3Y65.74%
ROICexcg growth 5Y41.57%
ROICexc growth 3Y58.74%
ROICexc growth 5Y35.54%
OM growth 3Y54.25%
OM growth 5Y26.2%
PM growth 3Y34.72%
PM growth 5Y18.46%
GM growth 3Y-0.43%
GM growth 5Y-0.56%
F-Score7
Asset Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 71.11% | ||
| Cap/Sales | 2.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 129.76% | ||
| Profit Quality | 188.74% | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.89 | ||
| Altman-Z | 6.15 |
F-Score7
WACC9.05%
ROIC/WACC2.09
Cap/Depr(3y)58.92%
Cap/Depr(5y)60.57%
Cap/Sales(3y)2.44%
Cap/Sales(5y)2.89%
Profit Quality(3y)303.46%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)36.31%
EPS 3Y56.59%
EPS 5Y24.97%
EPS Q2Q%110%
EPS Next Y29.78%
EPS Next 2Y23.2%
EPS Next 3Y14.42%
EPS Next 5Y18.17%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%7.75%
Revenue Next Year5.46%
Revenue Next 2Y4.95%
Revenue Next 3Y4.74%
Revenue Next 5Y3.74%
EBIT growth 1Y42.47%
EBIT growth 3Y71.26%
EBIT growth 5Y34.84%
EBIT Next Year145.96%
EBIT Next 3Y38.13%
EBIT Next 5Y24.31%
FCF growth 1Y55.48%
FCF growth 3Y10.45%
FCF growth 5Y8.23%
OCF growth 1Y50.51%
OCF growth 3Y10.35%
OCF growth 5Y6.89%