NYSE:YOU, a growth stock which is not overvalued.

Last update: Jul 18, 2024

Discover CLEAR SECURE INC -CLASS A (NYSE:YOU), an undervalued growth gem identified by our stock screener. NYSE:YOU is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Assessing Growth for NYSE:YOU

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:YOU was assigned a score of 7 for growth:

YOU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 224.00%, which is quite impressive.
The Revenue has grown by 37.77% in the past year. This is a very strong growth!
YOU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.53% yearly.
The Earnings Per Share is expected to grow by 39.52% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 17.38% on average over the next years. This is quite good.

A Closer Look at Valuation for NYSE:YOU

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:YOU was assigned a score of 6 for valuation:

Based on the Price/Earnings ratio, YOU is valued a bit cheaper than 78.83% of the companies in the same industry.
YOU's Price/Forward Earnings ratio is rather cheap when compared to the industry. YOU is cheaper than 85.04% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.79. YOU is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, YOU is valued a bit cheaper than 72.26% of the companies in the same industry.
YOU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. YOU is cheaper than 89.42% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as YOU's earnings are expected to grow with 39.52% in the coming years.

Deciphering NYSE:YOU's Health Rating

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:YOU, the assigned 6 reflects its health status:

An Altman-Z score of 3.02 indicates that YOU is not in any danger for bankruptcy at the moment.
There is no outstanding debt for YOU. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

Profitability Analysis for NYSE:YOU

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:YOU, the assigned 5 is noteworthy for profitability:

Looking at the Return On Assets, with a value of 5.12%, YOU is in the better half of the industry, outperforming 78.83% of the companies in the same industry.
YOU's Return On Equity of 31.40% is amongst the best of the industry. YOU outperforms 94.89% of its industry peers.
YOU's Return On Invested Capital of 11.90% is amongst the best of the industry. YOU outperforms 89.42% of its industry peers.
YOU's Profit Margin of 7.89% is fine compared to the rest of the industry. YOU outperforms 75.91% of its industry peers.
With a decent Operating Margin value of 8.95%, YOU is doing good in the industry, outperforming 79.56% of the companies in the same industry.
YOU has a Gross Margin of 85.58%. This is amongst the best in the industry. YOU outperforms 93.43% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of YOU for a complete fundamental analysis.

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.