YELP INC (YELP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YELP - US9858171054 - Common Stock
29.97 USD
-0.16 (-0.53%)
29.97 USD
0 (0%)
Overall YELP gets a fundamental rating of 7 out of 10. We evaluated YELP 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
In the past year YELP was profitable.
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
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.
YELP has a better Return On Equity (20.46%) 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.
The Average Return On Invested Capital over the past 3 years for YELP is below the industry average of 13.56%.
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
YELP's Profit Margin of 10.23% is fine compared to the rest of the industry. YELP outperforms 78.57% of its industry peers.
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.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), YELP is creating value.
Compared to 1 year ago, YELP has less shares outstanding
The number of shares outstanding for YELP has been reduced compared to 5 years ago.
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 5.16. This indicates that YELP is financially healthy and has little risk of bankruptcy at the moment.
YELP has a Altman-Z score of 5.16. This is amongst the best in the industry. YELP outperforms 82.86% 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 | 5.16 |
ROIC/WACC1.95
WACC10.41%
2.3 Liquidity
A Current Ratio of 2.99 indicates that YELP has no problem at all paying its short term obligations.
YELP's Current ratio of 2.99 is fine compared to the rest of the industry. YELP outperforms 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
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.
YELP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.97% yearly.
YELP shows a small growth in Revenue. In the last year, the Revenue has grown by 5.35%.
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.
YELP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.80% yearly.
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
A Price/Earnings ratio of 12.92 indicates a correct valuation of YELP.
YELP's Price/Earnings ratio is a bit cheaper when compared to the industry. YELP is 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 (26.41), we can say YELP is valued rather cheaply.
YELP is valuated reasonably with a Price/Forward Earnings ratio of 10.85.
Based on the Price/Forward Earnings ratio, YELP is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.40, YELP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 10.85 |
4.2 Price Multiples
82.86% of the companies in the same industry are more expensive than YELP, based on the Enterprise Value to EBITDA ratio.
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 | 5.92 | ||
| EV/EBITDA | 6.07 |
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.
A more expensive valuation may be justified as YELP's earnings are expected to grow with 18.07% in the coming years.
PEG (NY)0.86
PEG (5Y)0.52
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 |
29.97
-0.16 (-0.53%)
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 Cap1.84B
Revenue(TTM)1.47B
Net Income(TTM)150.02M
Analysts54.12
Price Target34.37 (14.68%)
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 | 12.92 | ||
| Fwd PE | 10.85 | ||
| P/S | 1.26 | ||
| P/FCF | 5.92 | ||
| P/OCF | 5.14 | ||
| P/B | 2.51 | ||
| P/tB | 3.38 | ||
| EV/EBITDA | 6.07 |
EPS(TTM)2.32
EY7.74%
EPS(NY)2.76
Fwd EY9.22%
FCF(TTM)5.06
FCFY16.9%
OCF(TTM)5.83
OCFY19.45%
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 | 5.16 |
F-Score7
WACC10.41%
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.