YELP INC (YELP) Stock Fundamental Analysis
USA - NYSE:YELP - US9858171054 - Common Stock
28.31 USD
-0.78 (-2.68%)
28.31 USD
0 (0%)
Overall YELP gets a fundamental rating of 7 out of 10. We evaluated YELP 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. YELP scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make YELP suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year YELP was profitable.
In the past year YELP had a positive cash flow from operations.
YELP had positive earnings in 4 of the past 5 years.
Each year in the past 5 years YELP had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 15.22%, YELP belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
YELP has a better Return On Equity (19.98%) than 88.57% of its industry peers.
YELP has a better Return On Invested Capital (19.82%) than 87.14% of its industry peers.
YELP had an Average Return On Invested Capital over the past 3 years of 11.39%. This is below the industry average of 13.59%.
The last Return On Invested Capital (19.82%) for YELP is above the 3 year average (11.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.22% | ||
| ROE | 19.98% | ||
| ROIC | 19.82% |
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
YELP's Profit Margin of 10.28% is fine compared to the rest of the industry. YELP outperforms 77.14% of its industry peers.
In the last couple of years the Profit Margin of YELP has grown nicely.
YELP has a better Operating Margin (13.49%) than 78.57% of its industry peers.
In the last couple of years the Operating Margin of YELP has grown nicely.
YELP has a Gross Margin of 90.63%. This is amongst the best in the industry. YELP outperforms 91.43% of its industry peers.
YELP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.49% | ||
| PM (TTM) | 10.28% | ||
| GM | 90.63% |
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.
YELP has less shares outstanding than it did 1 year ago.
YELP has less shares outstanding than it did 5 years ago.
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
YELP has an Altman-Z score of 5.56. This indicates that YELP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.56, YELP belongs to the best of the industry, outperforming 84.29% of the companies in the same industry.
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 | 5.56 |
ROIC/WACC2
WACC9.93%
2.3 Liquidity
YELP has a Current Ratio of 3.27. This indicates that YELP is financially healthy and has no problem in meeting its short term obligations.
YELP has a better Current ratio (3.27) than 75.71% of its industry peers.
A Quick Ratio of 3.27 indicates that YELP has no problem at all paying its short term obligations.
The Quick ratio of YELP (3.27) is better than 75.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.27 | ||
| Quick Ratio | 3.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.92% over the past year.
YELP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.97% yearly.
YELP shows a small growth in Revenue. In the last year, the Revenue has grown by 5.35%.
The Revenue has been growing slightly by 6.84% on average over the past years.
EPS 1Y (TTM)38.92%
EPS 3Y56.59%
EPS 5Y24.97%
EPS Q2Q%8.93%
Revenue 1Y (TTM)5.35%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%4.36%
3.2 Future
The Earnings Per Share is expected to grow by 26.70% on average over the next years. This is a very strong growth
YELP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.11% yearly.
EPS Next Y15.02%
EPS Next 2Y19.96%
EPS Next 3Y18.07%
EPS Next 5Y26.7%
Revenue Next Year4.97%
Revenue Next 2Y4.39%
Revenue Next 3Y4.14%
Revenue Next 5Y3.11%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.20 indicates a correct valuation of YELP.
74.29% of the companies in the same industry are more expensive than YELP, based on the Price/Earnings ratio.
YELP is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.25, the valuation of YELP can be described as very reasonable.
Based on the Price/Forward Earnings ratio, YELP is valued a bit cheaper than 78.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, YELP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 10.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YELP is valued cheaper than 87.14% of the companies in the same industry.
95.71% of the companies in the same industry are more expensive than YELP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.26 | ||
| EV/EBITDA | 6.12 |
4.3 Compensation for Growth
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.
A more expensive valuation may be justified as YELP's earnings are expected to grow with 18.07% in the coming years.
PEG (NY)0.81
PEG (5Y)0.49
EPS Next 2Y19.96%
EPS Next 3Y18.07%
5. Dividend
5.1 Amount
No dividends for YELP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.31
-0.78 (-2.68%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.46%
Inst Owner Change0.78%
Ins Owners5.03%
Ins Owner Change-5.35%
Market Cap1.79B
Revenue(TTM)1.47B
Net Income(TTM)149.14M
Analysts54.12
Price Target36.12 (27.59%)
Short Float %9.12%
Short Ratio6.56
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)10.4%
Min EPS beat(2)7.11%
Max EPS beat(2)13.69%
EPS beat(4)4
Avg EPS beat(4)16.85%
Min EPS beat(4)7.11%
Max EPS beat(4)31.11%
EPS beat(8)7
Avg EPS beat(8)66.65%
EPS beat(12)9
Avg EPS beat(12)47.23%
EPS beat(16)13
Avg EPS beat(16)657.25%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-1%
Max Revenue beat(2)-0.52%
Revenue beat(4)1
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)1.39%
Revenue beat(8)1
Avg Revenue beat(8)-0.96%
Revenue beat(12)3
Avg Revenue beat(12)-0.74%
Revenue beat(16)6
Avg Revenue beat(16)-0.34%
PT rev (1m)1.07%
PT rev (3m)-7.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.08%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 10.25 | ||
| P/S | 1.23 | ||
| P/FCF | 6.26 | ||
| P/OCF | 5.42 | ||
| P/B | 2.39 | ||
| P/tB | 3.21 | ||
| EV/EBITDA | 6.12 |
EPS(TTM)2.32
EY8.19%
EPS(NY)2.76
Fwd EY9.76%
FCF(TTM)4.52
FCFY15.96%
OCF(TTM)5.22
OCFY18.45%
SpS23.01
BVpS11.84
TBVpS8.82
PEG (NY)0.81
PEG (5Y)0.49
Graham Number24.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.22% | ||
| ROE | 19.98% | ||
| ROCE | 23.74% | ||
| ROIC | 19.82% | ||
| ROICexc | 31.23% | ||
| ROICexgc | 49.1% | ||
| OM | 13.49% | ||
| PM (TTM) | 10.28% | ||
| GM | 90.63% | ||
| FCFM | 19.64% |
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
ROICexgc growth 3Y65.74%
ROICexgc 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 Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 116.82% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 140.92% | ||
| Profit Quality | 191.08% | ||
| Current Ratio | 3.27 | ||
| Quick Ratio | 3.27 | ||
| Altman-Z | 5.56 |
F-Score7
WACC9.93%
ROIC/WACC2
Cap/Depr(3y)75.78%
Cap/Depr(5y)70.69%
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)38.92%
EPS 3Y56.59%
EPS 5Y24.97%
EPS Q2Q%8.93%
EPS Next Y15.02%
EPS Next 2Y19.96%
EPS Next 3Y18.07%
EPS Next 5Y26.7%
Revenue 1Y (TTM)5.35%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%4.36%
Revenue Next Year4.97%
Revenue Next 2Y4.39%
Revenue Next 3Y4.14%
Revenue Next 5Y3.11%
EBIT growth 1Y41.95%
EBIT growth 3Y71.26%
EBIT growth 5Y34.84%
EBIT Next Year154.73%
EBIT Next 3Y39.18%
EBIT Next 5Y29.16%
FCF growth 1Y39.9%
FCF growth 3Y10.45%
FCF growth 5Y8.23%
OCF growth 1Y39.3%
OCF growth 3Y10.35%
OCF growth 5Y6.89%
YELP INC / YELP FAQ
Can you provide the ChartMill fundamental rating for YELP INC?
ChartMill assigns a fundamental rating of 7 / 10 to YELP.
What is the valuation status of YELP INC (YELP) stock?
ChartMill assigns a valuation rating of 8 / 10 to YELP INC (YELP). This can be considered as Undervalued.
How profitable is YELP INC (YELP) stock?
YELP INC (YELP) has a profitability rating of 8 / 10.
What is the financial health of YELP INC (YELP) stock?
The financial health rating of YELP INC (YELP) is 9 / 10.
Can you provide the expected EPS growth for YELP stock?
The Earnings per Share (EPS) of YELP INC (YELP) is expected to grow by 15.02% in the next year.