YELP INC (YELP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YELP - US9858171054 - Common Stock
30.85 USD
+0.54 (+1.78%)
30.85 USD
0 (0%)
Taking everything into account, YELP scores 7 out of 10 in our fundamental rating. 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. These ratings would make YELP suitable 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.
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
The Return On Assets of YELP (15.16%) is better than 85.71% of its industry peers.
YELP has a Return On Equity of 20.46%. This is amongst the best in the industry. YELP outperforms 88.57% of its industry peers.
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 13.70%.
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 80.00% 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.
YELP has a Gross Margin of 90.47%. This is amongst the best in 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
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
YELP has less shares outstanding than it did 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 5.18. This indicates that YELP is financially healthy and has little risk of bankruptcy at the moment.
YELP has a Altman-Z score of 5.18. 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 | 5.18 |
ROIC/WACC2.3
WACC8.83%
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.
Looking at the Current ratio, with a value of 2.99, YELP is in the better half of the industry, outperforming 75.71% 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's Quick ratio of 2.99 is fine compared to the rest of the industry. YELP outperforms 75.71% 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
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
YELP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.76% yearly.
YELP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.80% yearly.
EPS Next Y15.74%
EPS Next 2Y24.15%
EPS Next 3Y20.96%
EPS Next 5Y26.76%
Revenue Next Year4.55%
Revenue Next 2Y3.68%
Revenue Next 3Y3.52%
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
The Price/Earnings ratio is 13.30, which indicates a correct valuation of YELP.
YELP's Price/Earnings ratio is a bit cheaper when compared to the industry. YELP is cheaper than 75.71% of the companies in the same industry.
YELP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
With a Price/Forward Earnings ratio of 10.42, the valuation of YELP can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of YELP indicates a rather cheap valuation: YELP is cheaper than 81.43% of the companies listed in the same industry.
YELP is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 10.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, YELP is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, YELP is valued cheaper than 95.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.09 | ||
| EV/EBITDA | 6.12 |
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.
YELP's earnings are expected to grow with 20.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)0.53
EPS Next 2Y24.15%
EPS Next 3Y20.96%
5. Dividend
5.1 Amount
YELP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
30.85
+0.54 (+1.78%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners104.58%
Inst Owner Change0%
Ins Owners4.98%
Ins Owner Change-6.71%
Market Cap1.90B
Revenue(TTM)1.47B
Net Income(TTM)150.02M
Analysts54.12
Price Target34.48 (11.77%)
Short Float %9.61%
Short Ratio6.08
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)0.33%
PT rev (3m)-3.5%
EPS NQ rev (1m)3.27%
EPS NQ rev (3m)-4.05%
EPS NY rev (1m)0.45%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)-0.91%
Revenue NQ rev (3m)-3.71%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 10.42 | ||
| P/S | 1.29 | ||
| P/FCF | 6.09 | ||
| P/OCF | 5.29 | ||
| P/B | 2.59 | ||
| P/tB | 3.47 | ||
| EV/EBITDA | 6.12 |
EPS(TTM)2.32
EY7.52%
EPS(NY)2.96
Fwd EY9.59%
FCF(TTM)5.06
FCFY16.41%
OCF(TTM)5.83
OCFY18.9%
SpS23.86
BVpS11.92
TBVpS8.88
PEG (NY)0.85
PEG (5Y)0.53
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 | 5.18 |
F-Score7
WACC8.83%
ROIC/WACC2.3
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 Y15.74%
EPS Next 2Y24.15%
EPS Next 3Y20.96%
EPS Next 5Y26.76%
Revenue 1Y (TTM)5.35%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%4.36%
Revenue Next Year4.55%
Revenue Next 2Y3.68%
Revenue Next 3Y3.52%
Revenue Next 5Y2.8%
EBIT growth 1Y31.82%
EBIT growth 3Y71.26%
EBIT growth 5Y34.84%
EBIT Next Year160.25%
EBIT Next 3Y38.71%
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.
Can you provide the valuation status for YELP INC?
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 valuation of YELP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for YELP INC (YELP) is 13.3 and the Price/Book (PB) ratio is 2.59.