YELP INC (YELP) Stock Fundamental Analysis
NYSE:YELP - New York Stock Exchange, Inc. - US9858171054 - Common Stock - Currency: USD
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. YELP may be a bit undervalued, certainly considering the very reasonable score on growth 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.
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
YELP has a Return On Assets of 14.52%. This is amongst the best in the industry. YELP outperforms 90.00% of its industry peers.
With an excellent Return On Equity value of 19.65%, YELP belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
With an excellent Return On Invested Capital value of 18.94%, YELP belongs to the best of the industry, outperforming 90.00% 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 in line with the industry average of 12.03%.
The 3 year average ROIC (11.39%) for YELP is below the current ROIC(18.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.52% | ||
| ROE | 19.65% | ||
| ROIC | 18.94% |
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 9.95%, YELP is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
YELP's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.67%, YELP is doing good in the industry, outperforming 75.71% of the companies in the same industry.
YELP's Operating Margin has improved in the last couple of years.
The Gross Margin of YELP (90.88%) is better than 91.43% of its industry peers.
YELP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.67% | ||
| PM (TTM) | 9.95% | ||
| GM | 90.88% |
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.
Compared to 1 year ago, YELP has less shares outstanding
Compared to 5 years ago, YELP has less shares outstanding
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
YELP has an Altman-Z score of 5.90. This indicates that YELP is financially healthy and has little risk of bankruptcy at the moment.
YELP has a Altman-Z score of 5.90. This is in the better half of the industry: YELP outperforms 80.00% 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 | 5.9 |
ROIC/WACC2.01
WACC9.44%
2.3 Liquidity
A Current Ratio of 2.89 indicates that YELP has no problem at all paying its short term obligations.
The Current ratio of YELP (2.89) is better than 70.00% of its industry peers.
A Quick Ratio of 2.89 indicates that YELP has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.89, YELP is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.89 |
3. Growth
3.1 Past
YELP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.31%, 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 5.93% in the past year.
The Revenue has been growing slightly by 6.84% on average over the past years.
EPS 1Y (TTM)36.31%
EPS 3Y56.59%
EPS 5Y24.97%
EPS Q2Q%110%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%7.75%
3.2 Future
Based on estimates for the next years, YELP will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.17% on average per year.
The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y14.63%
EPS Next 2Y23.13%
EPS Next 3Y16.89%
EPS Next 5Y18.17%
Revenue Next Year5.46%
Revenue Next 2Y4.92%
Revenue Next 3Y4.72%
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.
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
YELP is valuated correctly with a Price/Earnings ratio of 15.96.
74.29% of the companies in the same industry are more expensive than YELP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of YELP to the average of the S&P500 Index (27.30), we can say YELP is valued slightly cheaper.
YELP is valuated reasonably with a Price/Forward Earnings ratio of 11.73.
Based on the Price/Forward Earnings ratio, YELP is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, YELP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 11.73 |
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.
YELP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. YELP is cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.08 | ||
| EV/EBITDA | 7.32 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
YELP has an outstanding profitability rating, which may justify a higher PE ratio.
YELP's earnings are expected to grow with 16.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)0.64
EPS Next 2Y23.13%
EPS Next 3Y16.89%
5. Dividend
5.1 Amount
No dividends for YELP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.16
-0.95 (-2.71%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.32%
Inst Owner Change0%
Ins Owners5.08%
Ins Owner Change2.92%
Market Cap2.18B
Analysts54.12
Price Target39.41 (15.37%)
Short Float %7.44%
Short Ratio5.63
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)11.31%
Min EPS beat(2)7.11%
Max EPS beat(2)15.5%
EPS beat(4)4
Avg EPS beat(4)37.97%
Min EPS beat(4)7.11%
Max EPS beat(4)98.18%
EPS beat(8)7
Avg EPS beat(8)69.28%
EPS beat(12)9
Avg EPS beat(12)127.62%
EPS beat(16)13
Avg EPS beat(16)665.94%
Revenue beat(2)1
Avg Revenue beat(2)0.43%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)1.39%
Revenue beat(4)1
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)1.39%
Revenue beat(8)2
Avg Revenue beat(8)-0.64%
Revenue beat(12)4
Avg Revenue beat(12)-0.45%
Revenue beat(16)7
Avg Revenue beat(16)-0.11%
PT rev (1m)0%
PT rev (3m)-3.4%
EPS NQ rev (1m)-1.7%
EPS NQ rev (3m)-5.98%
EPS NY rev (1m)-11.67%
EPS NY rev (3m)-13.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 11.73 | ||
| P/S | 1.52 | ||
| P/FCF | 8.08 | ||
| P/OCF | 7.01 | ||
| P/B | 3 | ||
| P/tB | 4.05 | ||
| EV/EBITDA | 7.32 |
EPS(TTM)2.14
EY6.26%
EPS(NY)2.91
Fwd EY8.52%
FCF(TTM)4.23
FCFY12.38%
OCF(TTM)4.87
OCFY14.26%
SpS22.52
BVpS11.4
TBVpS8.42
PEG (NY)1.09
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.52% | ||
| ROE | 19.65% | ||
| ROCE | 22.69% | ||
| ROIC | 18.94% | ||
| ROICexc | 31.79% | ||
| ROICexgc | 52.77% | ||
| OM | 12.67% | ||
| PM (TTM) | 9.95% | ||
| GM | 90.88% | ||
| FCFM | 18.78% |
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
ROICexcg growth 3Y65.74%
ROICexcg 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 Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 71.11% | ||
| Cap/Sales | 2.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 129.76% | ||
| Profit Quality | 188.74% | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.89 | ||
| Altman-Z | 5.9 |
F-Score7
WACC9.44%
ROIC/WACC2.01
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)36.31%
EPS 3Y56.59%
EPS 5Y24.97%
EPS Q2Q%110%
EPS Next Y14.63%
EPS Next 2Y23.13%
EPS Next 3Y16.89%
EPS Next 5Y18.17%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%7.75%
Revenue Next Year5.46%
Revenue Next 2Y4.92%
Revenue Next 3Y4.72%
Revenue Next 5Y3.74%
EBIT growth 1Y42.47%
EBIT growth 3Y71.26%
EBIT growth 5Y34.84%
EBIT Next Year145.96%
EBIT Next 3Y38.13%
EBIT Next 5Y24.31%
FCF growth 1Y55.48%
FCF growth 3Y10.45%
FCF growth 5Y8.23%
OCF growth 1Y50.51%
OCF growth 3Y10.35%
OCF growth 5Y6.89%