YELP : NYSE : Technology Services
$44.23 | %
Today's Range: 43.45 - 44.25
Avg. Daily Volume: 1452500.0
02/23/18 - 4:01 PM ET

Financial Analysis


YELP INC's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. YELP INC is extremely liquid. Currently, the Quick Ratio is 10.41 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 36.22% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)218.25194.8
EBITDA ($mil)16.2321.41
EBIT ($mil)6.511.98
Net Income ($mil)142.18.26


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)821.22479.53
Total Assets ($mil)1216.51885.21
Total Debt ($mil)0.00.0
Equity ($mil)1099.61807.19


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin92.5691.99
EBITDA Margin7.4310.99
Operating Margin2.986.15
Sales Turnover0.70.81
Return on Assets12.56-0.52
Return on Equity13.89-0.57
Debt Q4 FY17 Q4 FY16
Current Ratio10.69.29
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)82.7479.43
Div / share0.00.0
EPS1.60.1
Book value / share13.2910.16
Institutional Own % n/a n/a
Avg Daily Volume1470046.01485592.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 54.38 for the Internet Software & Services industry and a value on par with the S&P 500 average of 25.51. To use another comparison, its price-to-book ratio of 3.16 indicates valuation on par with the S&P 500 average of 3.26 and a significant discount versus the industry average of 7.78. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, YELP INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
YELP 24.40 Peers 54.38   YELP 20.71 Peers 25.71

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

YELP is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

YELP is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
YELP 76.31 Peers 21.24   YELP NM Peers 0.32

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

YELP is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

YELP's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
YELP 3.16 Peers 7.78   YELP 2557.14 Peers 22.11

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

YELP is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

YELP is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
YELP 4.10 Peers 9.46   YELP 18.75 Peers 35.76

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

YELP is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

YELP significantly trails its peers on the basis of sales growth

 

 

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