YELP INC (YELP) Stock Fundamental Analysis
NYSE:YELP - New York Stock Exchange, Inc. - US9858171054 - Common Stock - Currency: USD
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. YELP gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on YELP. 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.
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 14.52% is amongst the best of the industry. YELP outperforms 90.00% of its industry peers.
YELP has a Return On Equity of 19.65%. This is amongst the best in the industry. YELP outperforms 91.43% of its industry peers.
The Return On Invested Capital of YELP (18.94%) is better than 90.00% of its industry peers.
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 12.03%.
The 3 year average ROIC (11.39%) for YELP is below the current ROIC(18.94%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 9.95%, YELP is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of YELP has grown nicely.
YELP's Operating Margin of 12.67% is fine compared to the rest of the industry. YELP outperforms 75.71% of its industry peers.
In the last couple of years the Operating Margin of YELP has grown nicely.
With an excellent Gross Margin value of 90.88%, YELP belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
YELP's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for YELP has been reduced compared to 1 year ago.
Compared to 5 years ago, YELP has less shares outstanding
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 5.97 indicates that YELP is not in any danger for bankruptcy at the moment.
YELP has a better Altman-Z score (5.97) than 81.43% 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 | 5.97 |
ROIC/WACC2.03
WACC9.34%
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.
The Current ratio of YELP (2.89) is better than 70.00% of its industry peers.
A Quick Ratio of 2.89 indicates that YELP has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.89, YELP is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.89 |
3. Growth
3.1 Past
YELP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.31%, which is quite impressive.
YELP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.97% yearly.
Looking at the last year, YELP shows a small growth in Revenue. The Revenue has grown by 5.93% in the last year.
Measured over the past years, YELP shows a small growth in Revenue. The Revenue has been growing by 6.84% on average per year.
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.
YELP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.74% yearly.
EPS Next Y14.63%
EPS Next 2Y23.13%
EPS Next 3Y16.89%
EPS Next 5Y18.17%
Revenue Next Year5.46%
Revenue Next 2Y4.92%
Revenue Next 3Y4.72%
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.
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
A Price/Earnings ratio of 16.10 indicates a correct valuation of YELP.
YELP's Price/Earnings ratio is a bit cheaper when compared to the industry. YELP is cheaper than 72.86% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, YELP is valued a bit cheaper.
YELP is valuated reasonably with a Price/Forward Earnings ratio of 11.84.
Based on the Price/Forward Earnings ratio, YELP is valued cheaply inside the industry as 81.43% of the companies are valued more expensively.
YELP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 11.84 |
4.2 Price Multiples
YELP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. YELP is cheaper than 87.14% 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 91.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.15 | ||
| EV/EBITDA | 7.44 |
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.
YELP's earnings are expected to grow with 16.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)0.64
EPS Next 2Y23.13%
EPS Next 3Y16.89%
5. Dividend
5.1 Amount
No dividends for YELP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.46
-0.17 (-0.49%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.32%
Inst Owner Change0%
Ins Owners5.08%
Ins Owner Change2.92%
Market Cap2.20B
Analysts54.12
Price Target39.05 (13.32%)
Short Float %8.05%
Short Ratio5.85
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%
PT rev (3m)-3.4%
EPS NQ rev (1m)-1.7%
EPS NQ rev (3m)-5.98%
EPS NY rev (1m)-11.67%
EPS NY rev (3m)-13.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 11.84 | ||
| P/S | 1.53 | ||
| P/FCF | 8.15 | ||
| P/OCF | 7.07 | ||
| P/B | 3.02 | ||
| P/tB | 4.09 | ||
| EV/EBITDA | 7.44 |
EPS(TTM)2.14
EY6.21%
EPS(NY)2.91
Fwd EY8.45%
FCF(TTM)4.23
FCFY12.28%
OCF(TTM)4.87
OCFY14.13%
SpS22.52
BVpS11.4
TBVpS8.42
PEG (NY)1.1
PEG (5Y)0.64
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 | 5.97 |
F-Score7
WACC9.34%
ROIC/WACC2.03
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 Y14.63%
EPS Next 2Y23.13%
EPS Next 3Y16.89%
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 2Y4.92%
Revenue Next 3Y4.72%
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%