YELP INC (YELP)
US9858171054 - Common Stock
We assign a fundamental rating of 7 out of 10 to YELP. YELP was compared to 71 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 could make YELP a good candidate 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.
Of the past 5 years YELP 4 years were profitable.
In the past 5 years YELP always reported a positive cash flow from operatings.
1.2 Ratios
YELP's Return On Assets of 12.04% is amongst the best of the industry. YELP outperforms 90.91% of its industry peers.
The Return On Equity of YELP (15.96%) is better than 92.42% of its industry peers.
With an excellent Return On Invested Capital value of 13.65%, YELP belongs to the best of the industry, outperforming 89.39% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for YELP is significantly below the industry average of 11.31%.
The 3 year average ROIC (6.29%) for YELP is below the current ROIC(13.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.04% | ||
| ROE | 15.96% | ||
| ROIC | 13.65% |
ROA(3y)5.71%
ROA(5y)3.85%
ROE(3y)7.88%
ROE(5y)5.35%
ROIC(3y)6.29%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of YELP (8.48%) is better than 80.30% of its industry peers.
In the last couple of years the Profit Margin of YELP has grown nicely.
Looking at the Operating Margin, with a value of 10.67%, YELP is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
In the last couple of years the Operating Margin of YELP has grown nicely.
The Gross Margin of YELP (91.38%) is better than 92.42% 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 | 10.67% | ||
| PM (TTM) | 8.48% | ||
| GM | 91.38% |
OM growth 3YN/A
OM growth 5Y25.34%
PM growth 3YN/A
PM growth 5Y4.77%
GM growth 3Y-0.72%
GM growth 5Y-0.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), YELP is creating some 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 7.40. This indicates that YELP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.40, YELP belongs to the best of the industry, outperforming 81.82% 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 | 7.4 |
ROIC/WACC1.48
WACC9.24%
2.3 Liquidity
YELP has a Current Ratio of 3.46. 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 3.46, YELP is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
A Quick Ratio of 3.46 indicates that YELP has no problem at all paying its short term obligations.
YELP has a Quick ratio of 3.46. This is in the better half of the industry: YELP outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.46 | ||
| Quick Ratio | 3.46 |
3. Growth
3.1 Past
YELP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.54%, which is quite impressive.
The Earnings Per Share has been growing by 16.47% on average over the past years. This is quite good.
Looking at the last year, YELP shows a small growth in Revenue. The Revenue has grown by 6.81% in the last year.
The Revenue has been growing slightly by 7.24% on average over the past years.
EPS 1Y (TTM)32.54%
EPS 3YN/A
EPS 5Y16.47%
EPS Q2Q%-29.11%
Revenue 1Y (TTM)6.81%
Revenue growth 3Y15.27%
Revenue growth 5Y7.24%
Sales Q2Q%4.41%
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 22.63% on average per year.
The Revenue is expected to grow by 3.95% on average over the next years.
EPS Next Y37.13%
EPS Next 2Y34.77%
EPS Next 3Y30.55%
EPS Next 5Y22.63%
Revenue Next Year4.77%
Revenue Next 2Y5.08%
Revenue Next 3Y5.22%
Revenue Next 5Y3.95%
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 accelerating.
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
Based on the Price/Earnings ratio of 23.55, the valuation of YELP can be described as rather expensive.
Based on the Price/Earnings ratio, YELP is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.40. YELP is around the same levels.
The Price/Forward Earnings ratio is 16.04, which indicates a correct valuation of YELP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of YELP indicates a somewhat cheap valuation: YELP is cheaper than 69.70% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.67, YELP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.55 | ||
| Fwd PE | 16.04 |
4.2 Price Multiples
77.27% 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 cheaper than 84.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.89 | ||
| EV/EBITDA | 11.21 |
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 30.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.63
PEG (5Y)1.43
EPS Next 2Y34.77%
EPS Next 3Y30.55%
5. Dividend
5.1 Amount
YELP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
YELP INC
NYSE:YELP (1/7/2025, 3:07:43 PM)
39.33
-0.71 (-1.77%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners94.81%
Inst Owner Change-0.01%
Ins Owners4.63%
Ins Owner Change-6.3%
Market Cap2.59B
Analysts52.94
Price Target38.12 (-3.08%)
Short Float %7.3%
Short Ratio6.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)64.64%
Min EPS beat(2)31.11%
Max EPS beat(2)98.18%
EPS beat(4)3
Avg EPS beat(4)94.16%
Min EPS beat(4)-1.96%
Max EPS beat(4)249.33%
EPS beat(8)6
Avg EPS beat(8)71.62%
EPS beat(12)9
Avg EPS beat(12)142.25%
EPS beat(16)13
Avg EPS beat(16)1212.26%
Revenue beat(2)0
Avg Revenue beat(2)-1.41%
Min Revenue beat(2)-1.97%
Max Revenue beat(2)-0.85%
Revenue beat(4)0
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)-0.85%
Revenue beat(8)2
Avg Revenue beat(8)-0.88%
Revenue beat(12)4
Avg Revenue beat(12)-0.51%
Revenue beat(16)7
Avg Revenue beat(16)-0.18%
PT rev (1m)0%
PT rev (3m)-5.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.47%
EPS NY rev (1m)0%
EPS NY rev (3m)6.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.55 | ||
| Fwd PE | 16.04 | ||
| P/S | 1.86 | ||
| P/FCF | 9.89 | ||
| P/OCF | 8.8 | ||
| P/B | 3.5 | ||
| P/tB | 4.12 | ||
| EV/EBITDA | 11.21 |
EPS(TTM)1.67
EY4.25%
EPS(NY)2.45
Fwd EY6.23%
FCF(TTM)3.98
FCFY10.11%
OCF(TTM)4.47
OCFY11.36%
SpS21.16
BVpS11.24
TBVpS9.55
PEG (NY)0.63
PEG (5Y)1.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.04% | ||
| ROE | 15.96% | ||
| ROCE | 18.34% | ||
| ROIC | 13.65% | ||
| ROICexc | 26.78% | ||
| ROICexgc | 36.64% | ||
| OM | 10.67% | ||
| PM (TTM) | 8.48% | ||
| GM | 91.38% | ||
| FCFM | 18.8% |
ROA(3y)5.71%
ROA(5y)3.85%
ROE(3y)7.88%
ROE(5y)5.35%
ROIC(3y)6.29%
ROIC(5y)N/A
ROICexc(3y)12.97%
ROICexc(5y)N/A
ROICexgc(3y)17.87%
ROICexgc(5y)N/A
ROCE(3y)8.46%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y29.32%
ROICexc growth 3YN/A
ROICexc growth 5Y31.39%
OM growth 3YN/A
OM growth 5Y25.34%
PM growth 3YN/A
PM growth 5Y4.77%
GM growth 3Y-0.72%
GM growth 5Y-0.52%
F-Score9
Asset Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 82.52% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 156.66% | ||
| Profit Quality | 221.74% | ||
| Current Ratio | 3.46 | ||
| Quick Ratio | 3.46 | ||
| Altman-Z | 7.4 |
F-Score9
WACC9.24%
ROIC/WACC1.48
Cap/Depr(3y)61.91%
Cap/Depr(5y)67.39%
Cap/Sales(3y)2.48%
Cap/Sales(5y)3.1%
Profit Quality(3y)395.95%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.54%
EPS 3YN/A
EPS 5Y16.47%
EPS Q2Q%-29.11%
EPS Next Y37.13%
EPS Next 2Y34.77%
EPS Next 3Y30.55%
EPS Next 5Y22.63%
Revenue 1Y (TTM)6.81%
Revenue growth 3Y15.27%
Revenue growth 5Y7.24%
Sales Q2Q%4.41%
Revenue Next Year4.77%
Revenue Next 2Y5.08%
Revenue Next 3Y5.22%
Revenue Next 5Y3.95%
EBIT growth 1Y45.64%
EBIT growth 3YN/A
EBIT growth 5Y34.41%
EBIT Next Year283.46%
EBIT Next 3Y62.97%
EBIT Next 5Y30.07%
FCF growth 1Y57.67%
FCF growth 3Y26.33%
FCF growth 5Y19.39%
OCF growth 1Y52.5%
OCF growth 3Y20.12%
OCF growth 5Y13.84%