YELP : NYSE : Technology
$29.74 | %
Today's Range: 28.77 - 29.80
Avg. Daily Volume: 2,511,400
07/22/16 - 4:02 PM ET

Financial Analysis


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 ($mil)158.61118.51
EBITDA ($mil)-6.072.75
EBIT ($mil)-14.27-4.05
Net Income ($mil)-15.45-1.28


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)375.46331.23
Total Assets ($mil)772.97715.89
Total Debt ($mil)0.00.0
Equity ($mil)700.69656.66


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin90.592.58
EBITDA Margin-3.822.32
Operating Margin-9.0-3.42
Sales Turnover0.760.59
Return on Assets-6.085.28
Return on Equity-6.715.76
Debt Q1 FY16 Q1 FY15
Current Ratio7.598.29
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)76.4374.65
Div / share0.00.0
EPS-0.2-0.02
Book value / share9.178.8
Institutional Own % n/a n/a
Avg Daily Volume2509772.02576805.0

Valuation


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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
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.

 

 

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