YELP : NYSE : Technology
$41.87 0.0 | 0.0%
Today's Range: 41.53 - 42.34
Avg. Daily Volume: 2819100.0
08/23/17 - 12:10 PM ET

Financial Analysis


YELP INC's gross profit margin for the second 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 8.91 which clearly shows the ability to cover any short-term cash needs. YELP managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 21.60% 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 FY17 Q2 FY16
Net Sales ($mil)208.86173.43
EBITDA ($mil)17.537.38
EBIT ($mil)6.87-1.19
Net Income ($mil)7.590.45


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)511.8398.1
Total Assets ($mil)970.12799.8
Total Debt ($mil)0.00.0
Equity ($mil)886.67729.11


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin91.3691.3
EBITDA Margin8.394.25
Operating Margin3.29-0.68
Sales Turnover0.810.79
Return on Assets1.35-5.66
Return on Equity1.48-6.21
Debt Q2 FY17 Q2 FY16
Current Ratio9.138.43
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)81.877.25
Div / share0.00.0
EPS0.090.01
Book value / share10.849.44
Institutional Own % n/a n/a
Avg Daily Volume2848446.03344290.0

Valuation


HOLD. YELP INC's P/E ratio indicates a significant premium compared to an average of 40.84 for the Internet Software & Services industry and a significant premium compared to the S&P 500 average of 24.23. Conducting a second comparison, its price-to-book ratio of 3.82 indicates a premium versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 9.93. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
YELP 276.20 Peers 40.84   YELP 21.48 Peers 36.36

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

YELP is trading at a significant premium 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 significant 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 159.35 Peers 21.21   YELP NM Peers 0.33

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 3.82 Peers 9.93   YELP 125.42 Peers 33.86

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 4.30 Peers 10.14   YELP 25.08 Peers 32.57

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 trails its peers on the basis of sales growth

 

 

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