YELP INC (YELP) Stock Fundamental Analysis
NYSE:YELP - US9858171054 - Common Stock
31.62 USD
+0.33 (+1.05%)
32.5 USD
+0.88 (+2.78%)
Overall YELP gets a fundamental rating of 7 out of 10. We evaluated YELP against 69 industry peers in the Interactive Media & Services industry. YELP gets an excellent profitability rating and is at the same time showing great financial health properties. YELP may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, YELP could be worth investigating further 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.
Of the past 5 years YELP 4 years were profitable.
In the past 5 years YELP always reported a positive cash flow from operatings.
1.2 Ratios
YELP's Return On Assets of 15.22% is amongst the best of the industry. YELP outperforms 86.96% of its industry peers.
With an excellent Return On Equity value of 19.98%, YELP belongs to the best of the industry, outperforming 88.41% 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 88.41% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for YELP is in line with the industry average of 12.98%.
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's Profit Margin of 10.28% is fine compared to the rest of the industry. YELP outperforms 75.36% 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 78.26% of its industry peers.
In the last couple of years the Operating Margin of YELP has grown nicely.
YELP's Gross Margin of 90.63% is amongst the best of the industry. YELP outperforms 91.30% of its industry peers.
YELP's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, YELP has less shares outstanding
Compared to 5 years ago, YELP has less shares outstanding
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
An Altman-Z score of 5.97 indicates that YELP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.97, YELP belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
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 | 5.97 |
ROIC/WACC2.1
WACC9.42%
2.3 Liquidity
YELP has a Current Ratio of 3.27. This indicates that YELP is financially healthy and has no problem in meeting its short term obligations.
YELP's Current ratio of 3.27 is fine compared to the rest of the industry. YELP outperforms 75.36% of its industry peers.
YELP has a Quick Ratio of 3.27. This indicates that YELP is financially healthy and has no problem in meeting its short term obligations.
YELP has a better Quick ratio (3.27) than 75.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.27 | ||
| Quick Ratio | 3.27 |
3. Growth
3.1 Past
YELP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.47%, which is quite good.
The Earnings Per Share has been growing by 24.97% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 5.37% in the past year.
The Revenue has been growing slightly by 6.84% on average over the past years.
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
The Earnings Per Share is expected to grow by 18.17% on average over the next years. This is quite good.
Based on estimates for the next years, YELP will show a small growth in Revenue. The Revenue will grow by 3.74% on average per year.
EPS Next Y13.95%
EPS Next 2Y20.4%
EPS Next 3Y19.19%
EPS Next 5Y18.17%
Revenue Next Year5.11%
Revenue Next 2Y4.65%
Revenue Next 3Y4.27%
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.
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
A Price/Earnings ratio of 13.93 indicates a correct valuation of YELP.
Based on the Price/Earnings ratio, YELP is valued a bit cheaper than the industry average as 72.46% of the companies are valued more expensively.
YELP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.36, the valuation of YELP can be described as very reasonable.
Based on the Price/Forward Earnings ratio, YELP is valued a bit cheaper than 78.26% of the companies in the same industry.
YELP is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 11.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YELP is valued cheaper than 91.30% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of YELP indicates a rather cheap valuation: YELP is cheaper than 89.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7 | ||
| EV/EBITDA | 6.22 |
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 19.19% in the coming years.
PEG (NY)1
PEG (5Y)0.56
EPS Next 2Y20.4%
EPS Next 3Y19.19%
5. Dividend
5.1 Amount
No dividends for YELP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.62
+0.33 (+1.05%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.55%
Inst Owner Change2.04%
Ins Owners5.1%
Ins Owner Change-2.41%
Market Cap1.99B
Analysts52.94
Price Target35.73 (13%)
Short Float %8.11%
Short Ratio5.61
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)-8.49%
PT rev (3m)-8.44%
EPS NQ rev (1m)-17.23%
EPS NQ rev (3m)-23.08%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)-12.2%
Revenue NQ rev (1m)-1.27%
Revenue NQ rev (3m)-1.73%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 11.36 | ||
| P/S | 1.37 | ||
| P/FCF | 7 | ||
| P/OCF | 6.06 | ||
| P/B | 2.67 | ||
| P/tB | 3.59 | ||
| EV/EBITDA | 6.22 |
EPS(TTM)2.27
EY7.18%
EPS(NY)2.78
Fwd EY8.8%
FCF(TTM)4.52
FCFY14.29%
OCF(TTM)5.22
OCFY16.51%
SpS23.01
BVpS11.84
TBVpS8.82
PEG (NY)1
PEG (5Y)0.56
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
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 Turnover1.48
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 | 5.97 |
F-Score7
WACC9.42%
ROIC/WACC2.1
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 Y13.95%
EPS Next 2Y20.4%
EPS Next 3Y19.19%
EPS Next 5Y18.17%
Revenue 1Y (TTM)5.37%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%3.75%
Revenue Next Year5.11%
Revenue Next 2Y4.65%
Revenue Next 3Y4.27%
Revenue Next 5Y3.74%
EBIT growth 1Y41.95%
EBIT growth 3Y71.26%
EBIT growth 5Y34.84%
EBIT Next Year149.9%
EBIT Next 3Y39.28%
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%