YELP INC (YELP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YELP - US9858171054 - Common Stock
29.62 USD
+1 (+3.49%)
29.62 USD
0 (0%)
YELP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 70 industry peers in the Interactive Media & Services industry. YELP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on YELP. This makes YELP very considerable 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.
YELP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
YELP has a better Return On Assets (15.16%) than 85.71% of its industry peers.
With an excellent Return On Equity value of 20.46%, YELP belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
YELP has a Return On Invested Capital of 20.29%. This is amongst the best in the industry. YELP outperforms 85.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for YELP is below the industry average of 13.56%.
The 3 year average ROIC (11.39%) for YELP is below the current ROIC(20.29%), indicating increased profibility in the last year.
| 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
YELP's Profit Margin of 10.23% is fine compared to the rest of the industry. YELP outperforms 78.57% of its industry peers.
In the last couple of years the Profit Margin of YELP has grown nicely.
YELP has a better Operating Margin (13.35%) than 78.57% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so YELP is creating value.
The number of shares outstanding for YELP has been reduced compared to 1 year ago.
The number of shares outstanding for YELP has been reduced compared to 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
An Altman-Z score of 4.94 indicates that YELP is not in any danger for bankruptcy at the moment.
YELP's Altman-Z score of 4.94 is amongst the best of the industry. YELP outperforms 82.86% 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 | 4.94 |
ROIC/WACC1.95
WACC10.39%
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.
With a decent Current ratio value of 2.99, YELP is doing good in the industry, outperforming 74.29% 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.
YELP has a Quick ratio of 2.99. This is in the better half of the industry: YELP outperforms 74.29% 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.
The Earnings Per Share has been growing by 24.97% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 5.35% in the past year.
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
Based on estimates for the next years, YELP will show a very strong growth in Earnings Per Share. The EPS will grow by 26.76% on average per year.
The Revenue is expected to grow by 2.80% on average over the next years.
EPS Next Y15.02%
EPS Next 2Y19.96%
EPS Next 3Y18.07%
EPS Next 5Y26.76%
Revenue Next Year4.97%
Revenue Next 2Y4.39%
Revenue Next 3Y4.14%
Revenue Next 5Y2.8%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
The Price/Earnings ratio is 12.77, which indicates a correct valuation of YELP.
Based on the Price/Earnings ratio, YELP is valued a bit cheaper than 74.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of YELP to the average of the S&P500 Index (26.11), we can say YELP is valued rather cheaply.
A Price/Forward Earnings ratio of 10.72 indicates a reasonable valuation of YELP.
YELP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. YELP is cheaper than 80.00% of the companies in the same industry.
YELP is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 10.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of YELP indicates a rather cheap valuation: YELP is cheaper than 85.71% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of YELP indicates a rather cheap valuation: YELP is cheaper than 94.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.85 | ||
| EV/EBITDA | 5.68 |
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.
YELP has an outstanding profitability rating, which may justify a higher PE ratio.
YELP's earnings are expected to grow with 18.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)0.51
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 |
29.62
+1 (+3.49%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.46%
Inst Owner Change-0.14%
Ins Owners5.03%
Ins Owner Change-4.81%
Market Cap1.82B
Revenue(TTM)1.47B
Net Income(TTM)150.02M
Analysts54.12
Price Target34.37 (16.04%)
Short Float %8.09%
Short Ratio5.19
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)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)-3.82%
PT rev (3m)-3.82%
EPS NQ rev (1m)-3.85%
EPS NQ rev (3m)-6.13%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)-2.32%
Revenue NQ rev (3m)-2.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 10.72 | ||
| P/S | 1.24 | ||
| P/FCF | 5.85 | ||
| P/OCF | 5.08 | ||
| P/B | 2.48 | ||
| P/tB | 3.34 | ||
| EV/EBITDA | 5.68 |
EPS(TTM)2.32
EY7.83%
EPS(NY)2.76
Fwd EY9.33%
FCF(TTM)5.06
FCFY17.1%
OCF(TTM)5.83
OCFY19.68%
SpS23.86
BVpS11.92
TBVpS8.88
PEG (NY)0.85
PEG (5Y)0.51
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 | 4.94 |
F-Score7
WACC10.39%
ROIC/WACC1.95
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 5Y26.76%
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 5Y2.8%
EBIT growth 1Y31.82%
EBIT growth 3Y71.26%
EBIT growth 5Y34.84%
EBIT Next Year154.73%
EBIT Next 3Y39.18%
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 15.02% in the next year.