YELP INC (YELP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YELP - US9858171054 - Common Stock
29.68 USD
-0.29 (-0.97%)
29.68 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 gets an excellent profitability rating and is at the same time showing great financial health properties. 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
YELP had positive earnings in the past year.
In the past year YELP had a positive cash flow from operations.
YELP had positive earnings in 4 of the past 5 years.
In the past 5 years YELP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.16%, YELP belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
YELP's Return On Equity of 20.46% is amongst the best of the industry. YELP outperforms 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.
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
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.
YELP's Operating Margin of 13.35% is fine compared to the rest of the industry. YELP outperforms 78.57% of its industry peers.
YELP's Operating Margin has improved in the last couple of years.
YELP's Gross Margin of 90.47% is amongst the best of the industry. YELP outperforms 91.43% of its industry peers.
YELP's Gross Margin has been stable in the last couple of years.
| 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.
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
YELP has an Altman-Z score of 5.13. This indicates that YELP is financially healthy and has little risk of bankruptcy at the moment.
YELP's Altman-Z score of 5.13 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 | 5.13 |
ROIC/WACC1.94
WACC10.47%
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.
YELP has a better Current ratio (2.99) than 74.29% of its industry peers.
YELP has a Quick Ratio of 2.99. This indicates that YELP is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.99, YELP is doing good in the industry, outperforming 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.92% 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
YELP shows a small growth in Revenue. In the last year, the Revenue has grown by 5.35%.
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
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.
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
With a Price/Earnings ratio of 12.79, YELP is valued correctly.
Based on the Price/Earnings ratio, YELP is valued a bit cheaper than the industry average as 74.29% of the companies are valued more expensively.
YELP is valuated cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.74, the valuation of YELP can be described as reasonable.
78.57% 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 36.10. YELP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 10.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YELP is valued cheaply inside the industry as 84.29% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, YELP is valued cheaply inside the industry as 94.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.86 | ||
| EV/EBITDA | 6.03 |
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.
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
YELP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.68
-0.29 (-0.97%)
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-4.81%
Market Cap1.83B
Revenue(TTM)1.47B
Net Income(TTM)150.02M
Analysts54.12
Price Target34.37 (15.8%)
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 | 12.79 | ||
| Fwd PE | 10.74 | ||
| P/S | 1.24 | ||
| P/FCF | 5.86 | ||
| P/OCF | 5.09 | ||
| P/B | 2.49 | ||
| P/tB | 3.34 | ||
| EV/EBITDA | 6.03 |
EPS(TTM)2.32
EY7.82%
EPS(NY)2.76
Fwd EY9.31%
FCF(TTM)5.06
FCFY17.06%
OCF(TTM)5.83
OCFY19.64%
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 | 5.13 |
F-Score7
WACC10.47%
ROIC/WACC1.94
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.