YELP INC (YELP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:YELP - US9858171054 - Common Stock
30.37 USD
+0.17 (+0.56%)
30.37 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. Both the health and profitability get an excellent rating, making YELP a very profitable company, without any liquidiy or solvency issues. YELP is valued quite cheap, while showing a decent growth score. This is a good 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.
In the past year YELP had a positive cash flow from operations.
YELP had positive earnings in 4 of the past 5 years.
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.
YELP had an Average Return On Invested Capital over the past 3 years of 11.39%. This is below the industry average of 13.70%.
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
Looking at the Profit Margin, with a value of 10.23%, YELP is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
YELP's Profit Margin has improved in the last couple of years.
YELP has a Operating Margin of 13.35%. This is in the better half of the industry: YELP outperforms 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
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.
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 5.17 indicates that YELP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.17, YELP belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
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 | 5.17 |
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.
YELP has a Current ratio of 2.99. This is in the better half of the industry: YELP outperforms 75.71% 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.
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.
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%.
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.
Based on estimates for the next years, YELP will show a small growth in Revenue. The Revenue will grow by 2.80% on average per year.
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
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 13.09 indicates a correct valuation of YELP.
Based on the Price/Earnings ratio, YELP is valued a bit cheaper than the industry average as 75.71% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of YELP to the average of the S&P500 Index (26.87), we can say YELP is valued rather cheaply.
The Price/Forward Earnings ratio is 10.26, which indicates a very decent valuation of YELP.
81.43% of the companies in the same industry are more expensive than YELP, based on the Price/Forward Earnings ratio.
YELP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 10.26 |
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 82.86% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, YELP is valued cheaply inside the industry as 95.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6 | ||
| EV/EBITDA | 6.09 |
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 20.96% in the coming years.
PEG (NY)0.83
PEG (5Y)0.52
EPS Next 2Y24.15%
EPS Next 3Y20.96%
5. Dividend
5.1 Amount
No dividends for YELP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
30.37
+0.17 (+0.56%)
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 Cap1.87B
Revenue(TTM)1.47B
Net Income(TTM)150.02M
Analysts54.12
Price Target34.48 (13.53%)
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 | 13.09 | ||
| Fwd PE | 10.26 | ||
| P/S | 1.27 | ||
| P/FCF | 6 | ||
| P/OCF | 5.21 | ||
| P/B | 2.55 | ||
| P/tB | 3.42 | ||
| EV/EBITDA | 6.09 |
EPS(TTM)2.32
EY7.64%
EPS(NY)2.96
Fwd EY9.74%
FCF(TTM)5.06
FCFY16.67%
OCF(TTM)5.83
OCFY19.2%
SpS23.86
BVpS11.92
TBVpS8.88
PEG (NY)0.83
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 | 5.17 |
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 13.09 and the Price/Book (PB) ratio is 2.55.