YELP INC (YELP) Stock Fundamental Analysis
USA - NYSE:YELP - US9858171054 - Common Stock
32.49 USD
-0.5 (-1.52%)
32.49 USD
0 (0%)
YELP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 70 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making YELP a very profitable company, without any liquidiy or solvency issues. YELP is valued quite cheap, while showing a decent growth score. This is a good combination! This makes YELP very considerable for value and 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.
YELP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of YELP (15.22%) is better than 85.71% of its industry peers.
Looking at the Return On Equity, with a value of 19.98%, YELP belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 19.82%, YELP belongs to the top of the industry, outperforming 87.14% of the companies in the same industry.
YELP had an Average Return On Invested Capital over the past 3 years of 11.39%. This is in line with the industry average of 13.27%.
The 3 year average ROIC (11.39%) for YELP is below the current ROIC(19.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.22% | ||
| ROE | 19.98% | ||
| ROIC | 19.82% |
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 (10.28%) than 75.71% of its industry peers.
YELP's Profit Margin has improved in the last couple of years.
YELP's Operating Margin of 13.49% is fine compared to the rest of the industry. YELP outperforms 78.57% of its industry peers.
In the last couple of years the Operating Margin of YELP has grown nicely.
YELP has a Gross Margin of 90.63%. This is amongst the best in the industry. YELP outperforms 91.43% 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 | 13.49% | ||
| PM (TTM) | 10.28% | ||
| GM | 90.63% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), YELP is creating value.
YELP has less shares outstanding than it did 1 year ago.
YELP has less shares outstanding than it did 5 years ago.
YELP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
YELP has an Altman-Z score of 6.11. This indicates that YELP is financially healthy and has little risk of bankruptcy at the moment.
YELP has a Altman-Z score of 6.11. This is amongst the best in the industry. YELP outperforms 85.71% 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 | 6.11 |
ROIC/WACC1.94
WACC10.21%
2.3 Liquidity
A Current Ratio of 3.27 indicates that YELP has no problem at all paying its short term obligations.
The Current ratio of YELP (3.27) is better than 75.71% of its industry peers.
A Quick Ratio of 3.27 indicates that YELP has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.27, YELP is in the better half of the industry, outperforming 75.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.27 | ||
| Quick Ratio | 3.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.47% over the past year.
Measured over the past years, YELP shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.97% on average per year.
YELP shows a small growth in Revenue. In the last year, the Revenue has grown by 5.37%.
YELP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.84% yearly.
EPS 1Y (TTM)19.47%
EPS 3Y56.59%
EPS 5Y24.97%
EPS Q2Q%24.07%
Revenue 1Y (TTM)5.37%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%3.75%
3.2 Future
YELP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.17% yearly.
YELP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.74% yearly.
EPS Next Y15.08%
EPS Next 2Y20.01%
EPS Next 3Y18.09%
EPS Next 5Y18.17%
Revenue Next Year4.97%
Revenue Next 2Y4.39%
Revenue Next 3Y4.14%
Revenue Next 5Y3.74%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
YELP is valuated correctly with a Price/Earnings ratio of 14.31.
Based on the Price/Earnings ratio, YELP is valued a bit cheaper than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.00, YELP is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.75, the valuation of YELP can be described as very reasonable.
Based on the Price/Forward Earnings ratio, YELP is valued a bit cheaper than the industry average as 77.14% of the companies are valued more expensively.
YELP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.31 | ||
| Fwd PE | 11.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YELP is valued cheaply inside the industry as 88.57% of the companies are valued more expensively.
YELP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. YELP is cheaper than 91.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.19 | ||
| EV/EBITDA | 6.44 |
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.
YELP has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as YELP's earnings are expected to grow with 18.09% in the coming years.
PEG (NY)0.95
PEG (5Y)0.57
EPS Next 2Y20.01%
EPS Next 3Y18.09%
5. Dividend
5.1 Amount
YELP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.49
-0.5 (-1.52%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.46%
Inst Owner Change-0.13%
Ins Owners5.03%
Ins Owner Change-5.27%
Market Cap2.05B
Revenue(TTM)1.45B
Net Income(TTM)149.14M
Analysts52.94
Price Target35.73 (9.97%)
Short Float %9.12%
Short Ratio6.56
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)10.4%
Min EPS beat(2)7.11%
Max EPS beat(2)13.69%
EPS beat(4)4
Avg EPS beat(4)16.85%
Min EPS beat(4)7.11%
Max EPS beat(4)31.11%
EPS beat(8)7
Avg EPS beat(8)66.65%
EPS beat(12)9
Avg EPS beat(12)47.23%
EPS beat(16)13
Avg EPS beat(16)657.25%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-1%
Max Revenue beat(2)-0.52%
Revenue beat(4)1
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)1.39%
Revenue beat(8)1
Avg Revenue beat(8)-0.96%
Revenue beat(12)3
Avg Revenue beat(12)-0.74%
Revenue beat(16)6
Avg Revenue beat(16)-0.34%
PT rev (1m)0%
PT rev (3m)-8.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.2%
EPS NY rev (1m)0%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.31 | ||
| Fwd PE | 11.75 | ||
| P/S | 1.41 | ||
| P/FCF | 7.19 | ||
| P/OCF | 6.22 | ||
| P/B | 2.74 | ||
| P/tB | 3.69 | ||
| EV/EBITDA | 6.44 |
EPS(TTM)2.27
EY6.99%
EPS(NY)2.77
Fwd EY8.51%
FCF(TTM)4.52
FCFY13.91%
OCF(TTM)5.22
OCFY16.07%
SpS23.01
BVpS11.84
TBVpS8.82
PEG (NY)0.95
PEG (5Y)0.57
Graham Number24.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.22% | ||
| ROE | 19.98% | ||
| ROCE | 23.74% | ||
| ROIC | 19.82% | ||
| ROICexc | 31.23% | ||
| ROICexgc | 49.1% | ||
| OM | 13.49% | ||
| PM (TTM) | 10.28% | ||
| GM | 90.63% | ||
| FCFM | 19.64% |
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
ROICexgc growth 3Y65.74%
ROICexgc 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 Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 74.18% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 128.89% | ||
| Profit Quality | 191.08% | ||
| Current Ratio | 3.27 | ||
| Quick Ratio | 3.27 | ||
| Altman-Z | 6.11 |
F-Score7
WACC10.21%
ROIC/WACC1.94
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)19.47%
EPS 3Y56.59%
EPS 5Y24.97%
EPS Q2Q%24.07%
EPS Next Y15.08%
EPS Next 2Y20.01%
EPS Next 3Y18.09%
EPS Next 5Y18.17%
Revenue 1Y (TTM)5.37%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%3.75%
Revenue Next Year4.97%
Revenue Next 2Y4.39%
Revenue Next 3Y4.14%
Revenue Next 5Y3.74%
EBIT growth 1Y41.95%
EBIT growth 3Y71.26%
EBIT growth 5Y34.84%
EBIT Next Year154.73%
EBIT Next 3Y39.18%
EBIT Next 5Y24.31%
FCF growth 1Y39.9%
FCF growth 3Y10.45%
FCF growth 5Y8.23%
OCF growth 1Y39.3%
OCF growth 3Y10.35%
OCF growth 5Y6.89%
YELP INC / YELP FAQ
Can you provide the ChartMill fundamental rating for YELP INC?
ChartMill assigns a fundamental rating of 7 / 10 to YELP.
What is the valuation status of YELP INC (YELP) stock?
ChartMill assigns a valuation rating of 7 / 10 to YELP INC (YELP). This can be considered as Undervalued.
How profitable is YELP INC (YELP) stock?
YELP INC (YELP) has a profitability rating of 8 / 10.
What is the financial health of YELP INC (YELP) stock?
The financial health rating of YELP INC (YELP) is 9 / 10.
Can you provide the expected EPS growth for YELP stock?
The Earnings per Share (EPS) of YELP INC (YELP) is expected to grow by 15.08% in the next year.