NYSE:YELP, an undervalued stock with good fundamentals.

Last update: Jan 6, 2025

Take a closer look at YELP INC (NYSE:YELP), a remarkable value stock uncovered by our stock screener. NYSE:YELP excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Evaluating Valuation: NYSE:YELP

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:YELP boasts a 7 out of 10:

Based on the Price/Earnings ratio, YELP is valued a bit cheaper than 65.15% of the companies in the same industry.
71.21% of the companies in the same industry are more expensive than YELP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, YELP is valued a bit cheaper.
YELP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. YELP is cheaper than 77.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, YELP is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
YELP's 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 30.55% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: NYSE:YELP

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 better Return On Assets (12.04%) than 90.91% 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 92.42% of the companies in the same industry.
YELP's Return On Invested Capital of 13.65% is amongst the best of the industry. YELP outperforms 89.39% of its industry peers.
The last Return On Invested Capital (13.65%) for YELP is above the 3 year average (6.29%), which is a sign of increasing profitability.
The Profit Margin of YELP (8.48%) is better than 80.30% of its industry peers.
In the last couple of years the Profit Margin of YELP has grown nicely.
YELP has a Operating Margin of 10.67%. This is in the better half of the industry: YELP outperforms 75.76% 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 92.42% of its industry peers.

ChartMill's Evaluation of Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:YELP has earned a 9 out of 10:

YELP has an Altman-Z score of 7.32. This indicates that YELP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.32, YELP belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
YELP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
A Current Ratio of 3.46 indicates that YELP has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.46, YELP is doing good in the industry, outperforming 72.73% of the companies in the same industry.
A Quick Ratio of 3.46 indicates that YELP has no problem at all paying its short term obligations.
With a decent Quick ratio value of 3.46, YELP is doing good in the industry, outperforming 72.73% of the companies in the same industry.

Growth Assessment of NYSE:YELP

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:YELP boasts 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.
The Earnings Per Share has been growing by 16.47% on average over the past years. This is quite good.
The Earnings Per Share is expected to grow by 22.63% on average over the next years. This is a very strong growth
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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

Our latest full fundamental report of YELP contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.