YELP : NYSE : Technology
$41.70 up 0.72 | 1.76%
Today's Range: 40.93 - 41.94
Avg. Daily Volume: 2,404,300
09/30/16 - 4:02 PM ET

Financial Analysis


YELP INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. YELP INC is extremely liquid. Currently, the Quick Ratio is 8.15 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 6.25% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)173.43133.91
EBITDA ($mil)7.317.15
EBIT ($mil)-1.190.05
Net Income ($mil)0.45-1.31


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)398.1368.13
Total Assets ($mil)799.8741.39
Total Debt ($mil)0.00.0
Equity ($mil)729.11686.17


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin91.2690.2
EBITDA Margin4.215.33
Operating Margin-0.680.04
Sales Turnover0.790.63
Return on Assets-5.664.55
Return on Equity-6.214.92
Debt Q2 FY16 Q2 FY15
Current Ratio8.4310.3
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)77.2575.23
Div / share0.00.0
EPS0.01-0.02
Book value / share9.449.12
Institutional Own % n/a n/a
Avg Daily Volume2350435.02256743.0

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 4.07 indicates a premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 5.88. 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 38.68   YELP 49.52 Peers 25.47

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 512.80 Peers 24.75   YELP NA Peers 0.23

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 4.07 Peers 5.88   YELP -237.20 Peers 37.03

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 4.72 Peers 9.47   YELP 35.40 Peers 28.36

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 exceeds its peers.

 

 

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