In the world of growth stocks, NYSE:YOU shines as a value proposition.

Last update: Nov 1, 2024

CLEAR SECURE INC -CLASS A (NYSE:YOU) was identified as an affordable growth stock by our stock screener. NYSE:YOU is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Growth Examination for NYSE:YOU

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:YOU, the assigned 7 reflects its growth potential:

YOU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 150.00%, which is quite impressive.
YOU shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.41%.
The Revenue has been growing by 38.53% on average over the past years. This is a very strong growth!
The Earnings Per Share is expected to grow by 44.43% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 16.90% on average over the next years. This is quite good.

Deciphering NYSE:YOU's Valuation Rating

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:YOU has achieved a 6 out of 10:

Based on the Price/Earnings ratio, YOU is valued a bit cheaper than 65.71% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, YOU is valued a bit cheaper than 74.29% of the companies in the same industry.
66.79% of the companies in the same industry are more expensive than YOU, based on the Enterprise Value to EBITDA ratio.
84.64% of the companies in the same industry are more expensive than YOU, based on the Price/Free Cash Flow ratio.
YOU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of YOU may justify a higher PE ratio.
YOU's earnings are expected to grow with 44.43% in the coming years. This may justify a more expensive valuation.

Evaluating Health: NYSE:YOU

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:YOU has earned a 7 out of 10:

YOU has an Altman-Z score of 4.77. This indicates that YOU is financially healthy and has little risk of bankruptcy at the moment.
YOU's Altman-Z score of 4.77 is fine compared to the rest of the industry. YOU outperforms 63.93% of its industry peers.
YOU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

How do we evaluate the Profitability 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 6 is noteworthy for profitability:

With an excellent Return On Assets value of 7.35%, YOU belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
YOU has a Return On Equity of 47.02%. This is amongst the best in the industry. YOU outperforms 96.43% of its industry peers.
YOU has a Return On Invested Capital of 20.15%. This is amongst the best in the industry. YOU outperforms 94.64% of its industry peers.
With a decent Profit Margin value of 10.36%, YOU is doing good in the industry, outperforming 77.14% of the companies in the same industry.
Looking at the Operating Margin, with a value of 12.77%, YOU belongs to the top of the industry, outperforming 83.21% of the companies in the same industry.
YOU has a Gross Margin of 85.61%. This is amongst the best in the industry. YOU outperforms 92.86% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.