YELP INC (YELP) Stock Fundamental Analysis
USA - NYSE:YELP - US9858171054 - Common Stock
32.98 USD
+0.79 (+2.45%)
32.98 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to YELP. YELP was compared to 70 industry peers in the Interactive Media & Services industry. YELP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on YELP. These ratings could make YELP a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
In the past year YELP was profitable.
YELP had a positive operating cash flow in the past year.
Of the past 5 years YELP 4 years were profitable.
Each year in the past 5 years YELP had a positive operating cash flow.
1.2 Ratios
YELP has a better Return On Assets (15.22%) than 85.71% of its industry peers.
YELP has a Return On Equity of 19.98%. This is amongst the best in the industry. YELP outperforms 88.57% of its industry peers.
YELP has a Return On Invested Capital of 19.82%. This is amongst the best in the industry. YELP outperforms 87.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for YELP is in line with the industry average of 13.32%.
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
Looking at the Profit Margin, with a value of 10.28%, YELP is in the better half of the industry, outperforming 75.71% of the companies in the same industry.
YELP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.49%, YELP is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
In the last couple of years the Operating Margin of YELP has grown nicely.
Looking at the Gross Margin, with a value of 90.63%, YELP belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), YELP is creating value.
Compared to 1 year ago, YELP has less shares outstanding
Compared to 5 years ago, YELP has less shares outstanding
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
An Altman-Z score of 6.19 indicates that YELP is not in any danger for bankruptcy at the moment.
YELP has a better Altman-Z score (6.19) than 85.71% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.19 |
ROIC/WACC1.92
WACC10.31%
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.
With a decent Current ratio value of 3.27, YELP is doing good in the industry, outperforming 75.71% of the companies in the same industry.
YELP has a Quick Ratio of 3.27. This indicates that YELP is financially healthy and has no problem in meeting 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 nice 19.47% over the past year.
The Earnings Per Share has been growing by 24.97% on average over the past years. This is a very strong growth
Looking at the last year, YELP shows a small growth in Revenue. The Revenue has grown by 5.37% in the last year.
The Revenue has been growing slightly by 6.84% on average over the past years.
EPS 1Y (TTM)19.47%
EPS 3Y56.59%
EPS 5Y24.97%
EPS Q2Q%24.07%
Revenue 1Y (TTM)5.37%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%3.75%
3.2 Future
The Earnings Per Share is expected to grow by 18.17% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y15.08%
EPS Next 2Y20.01%
EPS Next 3Y18.09%
EPS Next 5Y18.17%
Revenue Next Year4.97%
Revenue Next 2Y4.39%
Revenue Next 3Y4.14%
Revenue Next 5Y3.74%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.53, the valuation of YELP can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of YELP indicates a somewhat cheap valuation: YELP is cheaper than 71.43% of the companies listed in the same industry.
YELP is valuated rather cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
YELP is valuated reasonably with a Price/Forward Earnings ratio of 11.93.
Based on the Price/Forward Earnings ratio, YELP is valued a bit cheaper than the industry average as 72.86% of the companies are valued more expensively.
YELP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.53 | ||
| Fwd PE | 11.93 |
4.2 Price Multiples
87.14% of the companies in the same industry are more expensive than YELP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, YELP is valued cheaper than 91.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.3 | ||
| EV/EBITDA | 6.56 |
4.3 Compensation for Growth
The 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 18.09% in the coming years.
PEG (NY)0.96
PEG (5Y)0.58
EPS Next 2Y20.01%
EPS Next 3Y18.09%
5. Dividend
5.1 Amount
YELP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.98
+0.79 (+2.45%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.46%
Inst Owner Change-0.31%
Ins Owners5.03%
Ins Owner Change-5.31%
Market Cap2.08B
Revenue(TTM)1.45B
Net Income(TTM)149.14M
Analysts52.94
Price Target36.12 (9.52%)
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)-24.2%
EPS NY rev (1m)0%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.53 | ||
| Fwd PE | 11.93 | ||
| P/S | 1.43 | ||
| P/FCF | 7.3 | ||
| P/OCF | 6.32 | ||
| P/B | 2.79 | ||
| P/tB | 3.74 | ||
| EV/EBITDA | 6.56 |
EPS(TTM)2.27
EY6.88%
EPS(NY)2.77
Fwd EY8.39%
FCF(TTM)4.52
FCFY13.7%
OCF(TTM)5.22
OCFY15.83%
SpS23.01
BVpS11.84
TBVpS8.82
PEG (NY)0.96
PEG (5Y)0.58
Graham Number24.59
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 | 74.18% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 128.89% | ||
| Profit Quality | 191.08% | ||
| Current Ratio | 3.27 | ||
| Quick Ratio | 3.27 | ||
| Altman-Z | 6.19 |
F-Score7
WACC10.31%
ROIC/WACC1.92
Cap/Depr(3y)58.92%
Cap/Depr(5y)60.57%
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)19.47%
EPS 3Y56.59%
EPS 5Y24.97%
EPS Q2Q%24.07%
EPS Next Y15.08%
EPS Next 2Y20.01%
EPS Next 3Y18.09%
EPS Next 5Y18.17%
Revenue 1Y (TTM)5.37%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%3.75%
Revenue Next Year4.97%
Revenue Next 2Y4.39%
Revenue Next 3Y4.14%
Revenue Next 5Y3.74%
EBIT growth 1Y41.95%
EBIT growth 3Y71.26%
EBIT growth 5Y34.84%
EBIT Next Year154.73%
EBIT Next 3Y39.18%
EBIT Next 5Y24.31%
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 7 / 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 15.08% in the next year.