YELP INC (YELP) Stock Fundamental Analysis
NYSE:YELP - New York Stock Exchange, Inc. - US9858171054 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to YELP. YELP was compared to 71 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on YELP. These ratings would make YELP suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
YELP had positive earnings in the past year.
In the past year YELP had a positive cash flow from operations.
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's Return On Assets of 12.04% is amongst the best of the industry. YELP outperforms 89.39% of its industry peers.
The Return On Equity of YELP (15.96%) is better than 90.91% of its industry peers.
YELP has a Return On Invested Capital of 15.32%. This is amongst the best in the industry. YELP outperforms 87.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.04% | ||
| ROE | 15.96% | ||
| ROIC | 15.32% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 8.48%, YELP is doing good in the industry, outperforming 78.79% of the companies in the same industry.
YELP's Profit Margin has improved in the last couple of years.
YELP has a better Operating Margin (10.67%) than 75.76% of its industry peers.
YELP's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 91.38%, YELP belongs to the top of the industry, outperforming 92.42% 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 | 10.67% | ||
| PM (TTM) | 8.48% | ||
| GM | 91.38% |
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 just above the Cost of Capital (WACC), so YELP is still creating some value.
YELP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 6.84 indicates that YELP is not in any danger for bankruptcy at the moment.
YELP's Altman-Z score of 6.84 is amongst the best of the industry. YELP outperforms 80.30% of its industry peers.
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 | 6.84 |
ROIC/WACC1.69
WACC9.06%
2.3 Liquidity
YELP has a Current Ratio of 3.46. This indicates that YELP is financially healthy and has no problem in meeting its short term obligations.
YELP has a Current ratio of 3.46. This is in the better half of the industry: YELP outperforms 72.73% of its industry peers.
A Quick Ratio of 3.46 indicates that YELP has no problem at all paying its short term obligations.
YELP has a Quick ratio of 3.46. This is in the better half of the industry: YELP outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.46 | ||
| Quick Ratio | 3.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.22% over the past year.
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.
Looking at the last year, YELP shows a small growth in Revenue. The Revenue has grown by 5.62% in the last year.
YELP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.84% yearly.
EPS 1Y (TTM)42.22%
EPS 3Y56.59%
EPS 5Y24.97%
EPS Q2Q%67.57%
Revenue 1Y (TTM)5.62%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%5.72%
3.2 Future
The Earnings Per Share is expected to grow by 18.17% on average over the next years. This is quite good.
YELP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.74% yearly.
EPS Next Y35.73%
EPS Next 2Y27.58%
EPS Next 3Y17.39%
EPS Next 5Y18.17%
Revenue Next Year5.95%
Revenue Next 2Y5.62%
Revenue Next 3Y4.87%
Revenue Next 5Y3.74%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
Based on the Price/Earnings ratio of 18.60, the valuation of YELP can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of YELP indicates a somewhat cheap valuation: YELP is cheaper than 74.24% of the companies listed in the same industry.
YELP is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
YELP is valuated correctly with a Price/Forward Earnings ratio of 13.71.
75.76% of the companies in the same industry are more expensive than YELP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.68. YELP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.6 | ||
| Fwd PE | 13.71 |
4.2 Price Multiples
81.82% of the companies in the same industry are more expensive than YELP, based on the Enterprise Value to EBITDA ratio.
YELP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. YELP is cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.98 | ||
| EV/EBITDA | 9.42 |
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 decent 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 17.39% in the coming years.
PEG (NY)0.52
PEG (5Y)0.75
EPS Next 2Y27.58%
EPS Next 3Y17.39%
5. Dividend
5.1 Amount
No dividends for YELP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
35.72
-0.87 (-2.38%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.17%
Inst Owner Change0.13%
Ins Owners5.26%
Ins Owner Change1.58%
Market Cap2.35B
Analysts52.5
Price Target41.18 (15.29%)
Short Float %7.09%
Short Ratio6.61
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)64.64%
Min EPS beat(2)31.11%
Max EPS beat(2)98.18%
EPS beat(4)3
Avg EPS beat(4)94.16%
Min EPS beat(4)-1.96%
Max EPS beat(4)249.33%
EPS beat(8)6
Avg EPS beat(8)71.62%
EPS beat(12)9
Avg EPS beat(12)142.25%
EPS beat(16)13
Avg EPS beat(16)1212.26%
Revenue beat(2)0
Avg Revenue beat(2)-1.41%
Min Revenue beat(2)-1.97%
Max Revenue beat(2)-0.85%
Revenue beat(4)0
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)-0.85%
Revenue beat(8)2
Avg Revenue beat(8)-0.88%
Revenue beat(12)4
Avg Revenue beat(12)-0.51%
Revenue beat(16)7
Avg Revenue beat(16)-0.18%
PT rev (1m)3.01%
PT rev (3m)0.56%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)-4.32%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)6.69%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-4.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.6 | ||
| Fwd PE | 13.71 | ||
| P/S | 1.69 | ||
| P/FCF | 8.98 | ||
| P/OCF | 8 | ||
| P/B | 3.18 | ||
| P/tB | 3.74 | ||
| EV/EBITDA | 9.42 |
EPS(TTM)1.92
EY5.38%
EPS(NY)2.61
Fwd EY7.3%
FCF(TTM)3.98
FCFY11.13%
OCF(TTM)4.47
OCFY12.51%
SpS21.16
BVpS11.24
TBVpS9.55
PEG (NY)0.52
PEG (5Y)0.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.04% | ||
| ROE | 15.96% | ||
| ROCE | 18.34% | ||
| ROIC | 15.32% | ||
| ROICexc | 30.04% | ||
| ROICexgc | 41.1% | ||
| OM | 10.67% | ||
| PM (TTM) | 8.48% | ||
| GM | 91.38% | ||
| FCFM | 18.8% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score8
Asset Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 63.94% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 147.72% | ||
| Profit Quality | 221.74% | ||
| Current Ratio | 3.46 | ||
| Quick Ratio | 3.46 | ||
| Altman-Z | 6.84 |
F-Score8
WACC9.06%
ROIC/WACC1.69
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)42.22%
EPS 3Y56.59%
EPS 5Y24.97%
EPS Q2Q%67.57%
EPS Next Y35.73%
EPS Next 2Y27.58%
EPS Next 3Y17.39%
EPS Next 5Y18.17%
Revenue 1Y (TTM)5.62%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%5.72%
Revenue Next Year5.95%
Revenue Next 2Y5.62%
Revenue Next 3Y4.87%
Revenue Next 5Y3.74%
EBIT growth 1Y45.64%
EBIT growth 3Y71.26%
EBIT growth 5Y34.84%
EBIT Next Year159.29%
EBIT Next 3Y43.42%
EBIT Next 5Y24.31%
FCF growth 1Y9.61%
FCF growth 3Y10.45%
FCF growth 5Y8.23%
OCF growth 1Y8.26%
OCF growth 3Y10.35%
OCF growth 5Y6.89%