NYSE:YELP is probably undervalued for the fundamentals it is displaying.

Last update: Dec 3, 2024

Discover YELP INC (NYSE:YELP), an undervalued stock highlighted by our stock screener. NYSE:YELP showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Understanding NYSE:YELP's Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:YELP scores a 8 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of YELP indicates a somewhat cheap valuation: YELP is cheaper than 69.44% of the companies listed in the same industry.
YELP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.70.
Based on the Price/Forward Earnings ratio, YELP is valued a bit cheaper than 73.61% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of YELP to the average of the S&P500 Index (24.16), we can say YELP is valued slightly cheaper.
YELP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. YELP is cheaper than 81.94% of the companies in the same industry.
YELP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. YELP is cheaper than 87.50% of the companies in the same industry.
YELP's 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 30.55% in the coming years.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:YELP has earned a 8 out of 10:

YELP has a Return On Assets of 12.04%. This is amongst the best in the industry. YELP outperforms 91.67% of its industry peers.
Looking at the Return On Equity, with a value of 15.96%, YELP belongs to the top of the industry, outperforming 93.06% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.65%, YELP belongs to the best of the industry, outperforming 90.28% of the companies in the same industry.
The 3 year average ROIC (6.29%) for YELP is below the current ROIC(13.65%), indicating increased profibility in the last year.
YELP's Profit Margin of 8.48% is amongst the best of the industry. YELP outperforms 81.94% of its industry peers.
YELP's Profit Margin has improved in the last couple of years.
YELP's Operating Margin of 10.67% is fine compared to the rest of the industry. YELP outperforms 77.78% of its industry peers.
YELP's Operating Margin has improved in the last couple of years.
YELP has a better Gross Margin (91.38%) than 91.67% of its industry peers.

Health Analysis for NYSE:YELP

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:YELP has achieved a 9 out of 10:

YELP has an Altman-Z score of 7.16. This indicates that YELP is financially healthy and has little risk of bankruptcy at the moment.
YELP has a Altman-Z score of 7.16. This is amongst the best in the industry. YELP outperforms 81.94% 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.
YELP has a Current Ratio of 3.46. This indicates that YELP is financially healthy and has no problem in meeting its short term obligations.
YELP's Current ratio of 3.46 is fine compared to the rest of the industry. YELP outperforms 72.22% of its industry peers.
A Quick Ratio of 3.46 indicates that YELP has no problem at all paying its short term obligations.
YELP has a better Quick ratio (3.46) than 72.22% of its industry peers.

Assessing Growth Metrics for NYSE:YELP

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:YELP has received a 5 out of 10:

YELP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.54%, which is quite impressive.
YELP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.47% yearly.
Based on estimates for the next years, YELP will show a very strong growth in Earnings Per Share. The EPS will grow by 22.63% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of YELP

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.