Yelp IncFind Ratings Reports
YELP INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. YELP INC is extremely liquid. Currently, the Quick Ratio is 7.30 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 6.70% 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||Q1 FY16||Q1 FY15|
|Net Sales ($mil)||158.61||118.51|
|Net Income ($mil)||-15.45||-1.28|
|Balance Sheet||Q1 FY16||Q1 FY15|
|Cash & Equiv. ($mil)||375.46||331.23|
|Total Assets ($mil)||772.97||715.89|
|Total Debt ($mil)||0.0||0.0|
|Profitability||Q1 FY16||Q1 FY15|
|Gross Profit Margin||90.5||92.58|
|Return on Assets||-6.08||5.28|
|Return on Equity||-6.71||5.76|
|Debt||Q1 FY16||Q1 FY15|
|Share Data||Q1 FY16||Q1 FY15|
|Shares outstanding (mil)||76.43||74.65|
|Div / share||0.0||0.0|
|Book value / share||9.17||8.8|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2509772.0||2576805.0|
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 3.15 indicates a premium versus the S&P 500 average of 2.80 and a significant discount versus the industry average of 5.37. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, YELP INC proves to trade at a discount to investment alternatives within the industry.
|YELP NM||Peers 38.46||YELP 39.85||Peers 25.70|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
YELP's P/E is negative making this valuation measure meaningless.
Premium. 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 significant premium to its peers.
|YELP 1923.33||Peers 20.35||YELP NA||Peers 0.25|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
YELP's ratio is negative making this valuation measure meaningless.
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.
Ratio not available.
|YELP 3.15||Peers 5.37||YELP -226.53||Peers 47.28|
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.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, YELP is expected to significantly trail its peers on the basis of its earnings growth rate.
|YELP 3.74||Peers 8.70||YELP 40.55||Peers 25.94|
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.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
YELP has a sales growth rate that significantly exceeds its peers.