YELP INC (YELP) Stock Fundamental Analysis
USA - NYSE:YELP - US9858171054 - Common Stock
32.13 USD
+0.37 (+1.16%)
32.13 USD
0 (0%)
Taking everything into account, YELP scores 7 out of 10 in our fundamental rating. YELP was compared to 69 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. YELP may be a bit undervalued, certainly considering the very reasonable score on growth 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.
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 (15.22%) is better than 86.96% of its industry peers.
The Return On Equity of YELP (19.98%) is better than 88.41% of its industry peers.
With an excellent Return On Invested Capital value of 19.82%, YELP belongs to the best of the industry, outperforming 88.41% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for YELP is in line with the industry average of 12.98%.
The last Return On Invested Capital (19.82%) for YELP is above the 3 year average (11.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.22% | ||
| ROE | 19.98% | ||
| ROIC | 19.82% |
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 Profit Margin of 10.28%. This is in the better half of the industry: YELP outperforms 76.81% of its industry peers.
YELP's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 13.49%, YELP is doing good in the industry, outperforming 78.26% of the companies in the same industry.
In the last couple of years the Operating Margin of YELP has grown nicely.
YELP has a Gross Margin of 90.63%. This is amongst the best in the industry. YELP outperforms 91.30% of its industry peers.
YELP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.49% | ||
| PM (TTM) | 10.28% | ||
| GM | 90.63% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so YELP is creating value.
YELP has less shares outstanding than it did 1 year ago.
YELP has less shares outstanding than it did 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
YELP has an Altman-Z score of 5.99. This indicates that YELP is financially healthy and has little risk of bankruptcy at the moment.
YELP has a better Altman-Z score (5.99) than 81.16% 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 | 5.99 |
ROIC/WACC2.12
WACC9.34%
2.3 Liquidity
YELP has a Current Ratio of 3.27. This indicates that YELP is financially healthy and has no problem in meeting its short term obligations.
YELP's Current ratio of 3.27 is fine compared to the rest of the industry. YELP outperforms 75.36% of its industry peers.
YELP has a Quick Ratio of 3.27. This indicates that YELP is financially healthy and has no problem in meeting its short term obligations.
YELP has a Quick ratio of 3.27. This is in the better half of the industry: YELP outperforms 75.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.27 | ||
| Quick Ratio | 3.27 |
3. Growth
3.1 Past
YELP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.47%, which is quite good.
YELP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.97% yearly.
Looking at the last year, YELP shows a small growth in Revenue. The Revenue has grown by 5.37% in the last year.
YELP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.84% yearly.
EPS 1Y (TTM)19.47%
EPS 3Y56.59%
EPS 5Y24.97%
EPS Q2Q%24.07%
Revenue 1Y (TTM)5.37%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%3.75%
3.2 Future
The Earnings Per Share is expected to grow by 18.17% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y13.95%
EPS Next 2Y20.4%
EPS Next 3Y19.19%
EPS Next 5Y18.17%
Revenue Next Year4.97%
Revenue Next 2Y4.42%
Revenue Next 3Y4.17%
Revenue Next 5Y3.74%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.15 indicates a correct valuation of YELP.
73.91% of the companies in the same industry are more expensive than YELP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of YELP to the average of the S&P500 Index (27.41), we can say YELP is valued slightly cheaper.
YELP is valuated reasonably with a Price/Forward Earnings ratio of 11.54.
Based on the Price/Forward Earnings ratio, YELP is valued cheaper than 81.16% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.88. YELP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 11.54 |
4.2 Price Multiples
91.30% of the companies in the same industry are more expensive than YELP, based on the Enterprise Value to EBITDA ratio.
YELP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. YELP is cheaper than 89.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.11 | ||
| EV/EBITDA | 6.26 |
4.3 Compensation for Growth
YELP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 19.19% in the coming years.
PEG (NY)1.01
PEG (5Y)0.57
EPS Next 2Y20.4%
EPS Next 3Y19.19%
5. Dividend
5.1 Amount
No dividends for YELP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.13
+0.37 (+1.16%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.55%
Inst Owner Change2.04%
Ins Owners5.1%
Ins Owner Change-5.16%
Market Cap2.03B
Analysts52.94
Price Target35.73 (11.2%)
Short Float %8.24%
Short Ratio5.83
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)10.4%
Min EPS beat(2)7.11%
Max EPS beat(2)13.69%
EPS beat(4)4
Avg EPS beat(4)16.85%
Min EPS beat(4)7.11%
Max EPS beat(4)31.11%
EPS beat(8)7
Avg EPS beat(8)66.65%
EPS beat(12)9
Avg EPS beat(12)47.23%
EPS beat(16)13
Avg EPS beat(16)657.25%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-1%
Max Revenue beat(2)-0.52%
Revenue beat(4)1
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)1.39%
Revenue beat(8)1
Avg Revenue beat(8)-0.96%
Revenue beat(12)3
Avg Revenue beat(12)-0.74%
Revenue beat(16)6
Avg Revenue beat(16)-0.34%
PT rev (1m)-8.49%
PT rev (3m)-9.33%
EPS NQ rev (1m)-12.13%
EPS NQ rev (3m)-24.08%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)-12.2%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 11.54 | ||
| P/S | 1.4 | ||
| P/FCF | 7.11 | ||
| P/OCF | 6.15 | ||
| P/B | 2.71 | ||
| P/tB | 3.64 | ||
| EV/EBITDA | 6.26 |
EPS(TTM)2.27
EY7.07%
EPS(NY)2.78
Fwd EY8.66%
FCF(TTM)4.52
FCFY14.06%
OCF(TTM)5.22
OCFY16.25%
SpS23.01
BVpS11.84
TBVpS8.82
PEG (NY)1.01
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.22% | ||
| ROE | 19.98% | ||
| ROCE | 23.74% | ||
| ROIC | 19.82% | ||
| ROICexc | 31.23% | ||
| ROICexgc | 49.1% | ||
| OM | 13.49% | ||
| PM (TTM) | 10.28% | ||
| GM | 90.63% | ||
| FCFM | 19.64% |
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
ROICexcg growth 3Y65.74%
ROICexcg 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 | 74.18% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 128.89% | ||
| Profit Quality | 191.08% | ||
| Current Ratio | 3.27 | ||
| Quick Ratio | 3.27 | ||
| Altman-Z | 5.99 |
F-Score7
WACC9.34%
ROIC/WACC2.12
Cap/Depr(3y)58.92%
Cap/Depr(5y)60.57%
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)19.47%
EPS 3Y56.59%
EPS 5Y24.97%
EPS Q2Q%24.07%
EPS Next Y13.95%
EPS Next 2Y20.4%
EPS Next 3Y19.19%
EPS Next 5Y18.17%
Revenue 1Y (TTM)5.37%
Revenue growth 3Y11.02%
Revenue growth 5Y6.84%
Sales Q2Q%3.75%
Revenue Next Year4.97%
Revenue Next 2Y4.42%
Revenue Next 3Y4.17%
Revenue Next 5Y3.74%
EBIT growth 1Y41.95%
EBIT growth 3Y71.26%
EBIT growth 5Y34.84%
EBIT Next Year149.9%
EBIT Next 3Y39.28%
EBIT Next 5Y24.31%
FCF growth 1Y39.9%
FCF growth 3Y10.45%
FCF growth 5Y8.23%
OCF growth 1Y39.3%
OCF growth 3Y10.35%
OCF growth 5Y6.89%