YELP INC (YELP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YELP - US9858171054 - Common Stock
31.3 USD
+0.24 (+0.77%)
31.3 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. Both the health and profitability get an excellent rating, making YELP a very profitable company, without any liquidiy or solvency issues. YELP scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, YELP could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
YELP had positive earnings in the past year.
YELP had a positive operating cash flow in the past year.
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.
With an excellent Return On Invested Capital value of 20.29%, YELP belongs to the best 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 14.04%.
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 has a better Profit Margin (10.23%) than 78.57% of its industry peers.
In the last couple of years the Profit Margin of YELP has grown nicely.
The Operating Margin of YELP (13.35%) is better than 78.57% of its industry peers.
In the last couple of years the Operating Margin of YELP has grown nicely.
With an excellent Gross Margin value of 90.47%, YELP belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
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
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 5.33. This indicates that YELP is financially healthy and has little risk of bankruptcy at the moment.
YELP's Altman-Z score of 5.33 is amongst the best of the industry. YELP outperforms 84.29% 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 | 5.33 |
ROIC/WACC1.96
WACC10.34%
2.3 Liquidity
A Current Ratio of 2.99 indicates that YELP has no problem at all paying its short term obligations.
YELP has a Current ratio of 2.99. This is in the better half of the industry: YELP outperforms 72.86% of its industry peers.
A Quick Ratio of 2.99 indicates that YELP has no problem at all paying its short term obligations.
The Quick ratio of YELP (2.99) is better than 72.86% of its industry peers.
| 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.
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 5.35% 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.
YELP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.80% yearly.
EPS Next Y15.21%
EPS Next 2Y18.99%
EPS Next 3Y16.02%
EPS Next 5Y26.76%
Revenue Next Year4.69%
Revenue Next 2Y3.81%
Revenue Next 3Y3.6%
Revenue Next 5Y2.8%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 13.49 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.
YELP is valuated rather cheaply when we compare the Price/Earnings ratio to 26.38, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.51, the valuation of YELP can be described as reasonable.
YELP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. YELP is cheaper than 77.14% of the companies in the same industry.
YELP is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 11.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YELP is valued cheaper than 82.86% of the companies in the same industry.
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 | 6.18 | ||
| EV/EBITDA | 6.38 |
4.3 Compensation for Growth
YELP's 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.
A more expensive valuation may be justified as YELP's earnings are expected to grow with 16.02% in the coming years.
PEG (NY)0.89
PEG (5Y)0.54
EPS Next 2Y18.99%
EPS Next 3Y16.02%
5. Dividend
5.1 Amount
No dividends for YELP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
31.3
+0.24 (+0.77%)
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-6.62%
Market Cap1.92B
Revenue(TTM)1.47B
Net Income(TTM)150.02M
Analysts54.12
Price Target34.37 (9.81%)
Short Float %9.03%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-4.83%
PT rev (3m)-3.82%
EPS NQ rev (1m)2.7%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.17%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)-1.26%
Revenue NQ rev (3m)-3.26%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 11.51 | ||
| P/S | 1.31 | ||
| P/FCF | 6.18 | ||
| P/OCF | 5.37 | ||
| P/B | 2.63 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | 6.38 |
EPS(TTM)2.32
EY7.41%
EPS(NY)2.72
Fwd EY8.68%
FCF(TTM)5.06
FCFY16.18%
OCF(TTM)5.83
OCFY18.63%
SpS23.86
BVpS11.92
TBVpS8.88
PEG (NY)0.89
PEG (5Y)0.54
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 | 5.33 |
F-Score7
WACC10.34%
ROIC/WACC1.96
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 Y15.21%
EPS Next 2Y18.99%
EPS Next 3Y16.02%
EPS Next 5Y26.76%
Revenue 1Y (TTM)5.35%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%4.36%
Revenue Next Year4.69%
Revenue Next 2Y3.81%
Revenue Next 3Y3.6%
Revenue Next 5Y2.8%
EBIT growth 1Y31.82%
EBIT growth 3Y71.26%
EBIT growth 5Y34.84%
EBIT Next Year158.77%
EBIT Next 3Y38.84%
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 15.21% in the next year.