YELP INC (YELP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YELP - US9858171054 - Common Stock
30.38 USD
-0.39 (-1.27%)
30.38 USD
0 (0%)
Taking everything into account, YELP scores 7 out of 10 in our fundamental rating. YELP was compared to 70 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making YELP a very profitable company, without any liquidiy or solvency issues. YELP may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make YELP suitable 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.
In the past 5 years YELP always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 15.16%, YELP belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Equity of YELP (20.46%) is better than 88.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.29%, YELP belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
YELP had an Average Return On Invested Capital over the past 3 years of 11.39%. This is below the industry average of 14.04%.
The last Return On Invested Capital (20.29%) for YELP is above the 3 year average (11.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.16% | ||
| ROE | 20.46% | ||
| ROIC | 20.29% |
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
With a decent Profit Margin value of 10.23%, YELP is doing good in the industry, outperforming 78.57% 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 13.35%, YELP is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
YELP's Operating Margin has improved in the last couple of years.
YELP has a better Gross Margin (90.47%) than 91.43% of its industry peers.
In the last couple of years the Gross Margin of YELP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.35% | ||
| PM (TTM) | 10.23% | ||
| GM | 90.47% |
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
YELP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for YELP has been reduced compared to 1 year ago.
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 5.25 indicates that YELP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.25, YELP belongs to the top of the industry, outperforming 84.29% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.25 |
ROIC/WACC1.93
WACC10.49%
2.3 Liquidity
YELP has a Current Ratio of 2.99. This indicates that YELP is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.99, YELP is in the better half of the industry, outperforming 72.86% of the companies in the same industry.
A Quick Ratio of 2.99 indicates that YELP has no problem at all paying its short term obligations.
The Quick ratio of YELP (2.99) is better than 72.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.99 |
3. Growth
3.1 Past
YELP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.92%, which is quite impressive.
Measured over the past years, YELP shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.97% on average per year.
The Revenue has been growing slightly by 5.35% in the past year.
Measured over the past years, YELP shows a small growth in Revenue. The Revenue has been growing by 6.84% on average per year.
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 26.76% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.80% on average over the next years.
EPS Next Y15.21%
EPS Next 2Y18.99%
EPS Next 3Y16.02%
EPS Next 5Y26.76%
Revenue Next Year4.69%
Revenue Next 2Y3.81%
Revenue Next 3Y3.6%
Revenue Next 5Y2.8%
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
YELP is valuated correctly with a Price/Earnings ratio of 13.09.
Based on the Price/Earnings ratio, YELP is valued a bit cheaper than 74.29% of the companies in the same industry.
YELP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.57.
With a Price/Forward Earnings ratio of 11.18, the valuation of YELP can be described as very reasonable.
YELP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. YELP is cheaper than 78.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, YELP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 11.18 |
4.2 Price Multiples
YELP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. YELP is cheaper than 82.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, YELP is valued cheaply inside the industry as 95.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6 | ||
| EV/EBITDA | 6.24 |
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.
YELP's earnings are expected to grow with 16.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.86
PEG (5Y)0.52
EPS Next 2Y18.99%
EPS Next 3Y16.02%
5. Dividend
5.1 Amount
No dividends for YELP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
30.38
-0.39 (-1.27%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners104.29%
Inst Owner Change-0.14%
Ins Owners5.02%
Ins Owner Change-6.66%
Market Cap1.87B
Revenue(TTM)1.47B
Net Income(TTM)150.02M
Analysts54.12
Price Target34.48 (13.5%)
Short Float %9.03%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)14.77%
Min EPS beat(2)13.69%
Max EPS beat(2)15.84%
EPS beat(4)4
Avg EPS beat(4)13.04%
Min EPS beat(4)7.11%
Max EPS beat(4)15.84%
EPS beat(8)7
Avg EPS beat(8)53.6%
EPS beat(12)10
Avg EPS beat(12)52.09%
EPS beat(16)13
Avg EPS beat(16)109.94%
Revenue beat(2)1
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-1%
Max Revenue beat(2)0.09%
Revenue beat(4)2
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-1%
Max Revenue beat(4)1.39%
Revenue beat(8)2
Avg Revenue beat(8)-0.85%
Revenue beat(12)4
Avg Revenue beat(12)-0.59%
Revenue beat(16)6
Avg Revenue beat(16)-0.39%
PT rev (1m)-4.83%
PT rev (3m)-3.82%
EPS NQ rev (1m)2.7%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.17%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)-1.26%
Revenue NQ rev (3m)-3.26%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 11.18 | ||
| P/S | 1.27 | ||
| P/FCF | 6 | ||
| P/OCF | 5.21 | ||
| P/B | 2.55 | ||
| P/tB | 3.42 | ||
| EV/EBITDA | 6.24 |
EPS(TTM)2.32
EY7.64%
EPS(NY)2.72
Fwd EY8.95%
FCF(TTM)5.06
FCFY16.67%
OCF(TTM)5.83
OCFY19.19%
SpS23.86
BVpS11.92
TBVpS8.88
PEG (NY)0.86
PEG (5Y)0.52
Graham Number24.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.16% | ||
| ROE | 20.46% | ||
| ROCE | 24.3% | ||
| ROIC | 20.29% | ||
| ROICexc | 34.62% | ||
| ROICexgc | 57.36% | ||
| OM | 13.35% | ||
| PM (TTM) | 10.23% | ||
| GM | 90.47% | ||
| FCFM | 21.23% |
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 | 125.91% | ||
| Cap/Sales | 3.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 153.69% | ||
| Profit Quality | 207.55% | ||
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.99 | ||
| Altman-Z | 5.25 |
F-Score7
WACC10.49%
ROIC/WACC1.93
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 Y15.21%
EPS Next 2Y18.99%
EPS Next 3Y16.02%
EPS Next 5Y26.76%
Revenue 1Y (TTM)5.35%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%4.36%
Revenue Next Year4.69%
Revenue Next 2Y3.81%
Revenue Next 3Y3.6%
Revenue Next 5Y2.8%
EBIT growth 1Y31.82%
EBIT growth 3Y71.26%
EBIT growth 5Y34.84%
EBIT Next Year158.77%
EBIT Next 3Y38.84%
EBIT Next 5Y28.15%
FCF growth 1Y30.39%
FCF growth 3Y10.45%
FCF growth 5Y8.23%
OCF growth 1Y32%
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 15.21% in the next year.