YELP : NYSE : Technology
$34.07 up 0.61 | 1.82%
Today's Range: 33.46 - 34.54
Avg. Daily Volume: 2309200.0
02/27/17 - 4:02 PM ET

Financial Analysis


YELP INC's gross profit margin for the fourth 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 9.08 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 16.37% 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 FY16 Q4 FY15
Net Sales ($mil)194.8153.73
EBITDA ($mil)0.01.59
EBIT ($mil)11.98-6.41
Net Income ($mil)8.26-22.23


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)479.53370.83
Total Assets ($mil)885.21755.43
Total Debt ($mil)0.00.0
Equity ($mil)807.19693.62


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin87.1590.26
EBITDA Margin0.01.03
Operating Margin6.15-4.17
Sales Turnover0.810.73
Return on Assets-0.52-4.35
Return on Equity-0.57-4.74
Debt Q4 FY16 Q4 FY15
Current Ratio9.298.91
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)78.3175.98
Div / share0.00.0
EPS0.1-0.29
Book value / share10.319.13
Institutional Own % n/a n/a
Avg Daily Volume2277630.02294707.0

Valuation


HOLD. 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. To use another comparison, its price-to-book ratio of 3.25 indicates valuation on par with the S&P 500 average of 2.96 and a significant discount versus the industry average of 5.30. 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 34.84   YELP 20.66 Peers 26.30

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.

 

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 92.97 Peers 17.04   YELP NA Peers 0.31

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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
YELP 3.25 Peers 5.30   YELP 84.10 Peers 60.12

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 3.68 Peers 9.31   YELP 29.71 Peers 29.77

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

YELP is keeping pace with its peers on the basis of sales growth.

 

 

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