Yelp (WBAG:YELP) - Share price, News & Analysis

YELP fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	1/6
Financial Health	6/6
Dividends	0/6

YELP Stock Overview

Yelp Inc. operates a platform that connects consumers with local businesses in the United States and internationally.

Rewards

Trading at 69.2% below our estimate of its fair value

Earnings are forecast to grow 30.29% per year

Became profitable this year

Risk Analysis

Large one-off items impacting financial results

Yelp Competitors

Apple

NasdaqGS:AAPL

US$2.4t

Alphabet

NasdaqGS:GOOGL

US$1.5t

Amazon.com

NasdaqGS:AMZN

US$1.1t

Meta Platforms

NasdaqGS:FB

US$541.4b

Price History & Performance

Summary of all time highs, changes and price drops for Yelp
Historical stock prices
Current Share Price	US$28.60
52 Week High	US$35.00
52 Week Low	US$27.20
Beta	1.66
1 Month Change	-12.27%
3 Month Change	-9.72%
1 Year Change	-7.08%
3 Year Change	-1.41%
5 Year Change	n/a
Change since IPO	-17.93%

Shareholder Returns

	YELP	AT Interactive Media and Services	AT Market
7D	2.1%	0%	0%
1Y	-7.1%	0%	0%

Return vs Industry: YELP exceeded the Austrian Interactive Media and Services industry which returned -35.9% over the past year.

Return vs Market: YELP underperformed the Austrian Market which returned -4.2% over the past year.

Price Volatility

Is YELP's price volatile compared to industry and market?
YELP volatility
YELP Average Weekly Movement	4.5%
Interactive Media and Services Industry Average Movement	0%
Market Average Movement	0%
10% most volatile stocks in AT Market	0%
10% least volatile stocks in AT Market	0%

Stable Share Price: YELP is not significantly more volatile than the rest of Austrian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: YELP's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2004	4,400	Jeremy Stoppelman	https://www.yelp.com

Yelp Inc. operates a platform that connects consumers with local businesses in the United States and internationally. The company’s platform covers various local business categories, including restaurants, shopping, beauty and fitness, health, and other categories, as well as home, local, auto, professional, pets, events, real estate, and financial services. It provides free and paid advertising products to businesses, which include cost-per-click search advertising and multi-location Ad products, as well as enables businesses to deliver targeted search advertising to local audiences; and business listing page products.

Yelp Fundamentals Summary

How do Yelp's earnings and revenue compare to its market cap?
YELP fundamental statistics
Market Cap	US$2.08b
Earnings (TTM)	US$44.55m
Revenue (TTM)	US$1.08b

48.3x

P/E Ratio

2.0x

P/S Ratio

Is YELP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
YELP income statement (TTM)
Revenue	US$1.08b
Cost of Revenue	US$86.65m
Gross Profit	US$989.72m
Other Expenses	US$945.17m
Earnings	US$44.55m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.63
Gross Margin	91.95%
Net Profit Margin	4.14%
Debt/Equity Ratio	0%

How did YELP perform over the long term?

See historical performance and comparison

Valuation

Is Yelp undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: YELP (€28.6) is trading below our estimate of fair value (€92.95)

Significantly Below Fair Value: YELP is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: YELP is poor value based on its PE Ratio (48.3x) compared to the European Interactive Media and Services industry average (31x).

PE vs Market: YELP is poor value based on its PE Ratio (48.3x) compared to the Austrian market (12.6x).

Price to Earnings Growth Ratio

PEG Ratio: YELP is poor value based on its PEG Ratio (1.6x)

Price to Book Ratio

PB vs Industry: YELP is overvalued based on its PB Ratio (3x) compared to the XE Interactive Media and Services industry average (2.1x).

Future Growth

How is Yelp forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

30.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: YELP's forecast earnings growth (30.3% per year) is above the savings rate (0.2%).

Earnings vs Market: YELP's earnings (30.3% per year) are forecast to grow faster than the Austrian market (6.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: YELP's revenue (7.2% per year) is forecast to grow faster than the Austrian market (2.1% per year).

High Growth Revenue: YELP's revenue (7.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: YELP's Return on Equity is forecast to be high in 3 years time (21.6%)

Past Performance

How has Yelp performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-29.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: YELP has a large one-off loss of $11.2M impacting its March 31 2022 financial results.

Growing Profit Margin: YELP became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: YELP's earnings have declined by 29% per year over the past 5 years.

Accelerating Growth: YELP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: YELP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (36.5%).

Return on Equity

High ROE: YELP's Return on Equity (6.2%) is considered low.

Financial Health

How is Yelp's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: YELP's short term assets ($637.3M) exceed its short term liabilities ($195.6M).

Long Term Liabilities: YELP's short term assets ($637.3M) exceed its long term liabilities ($124.9M).

Debt to Equity History and Analysis

Debt Level: YELP is debt free.

Reducing Debt: YELP has not had any debt for past 5 years.

Debt Coverage: YELP has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: YELP has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Yelp current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate YELP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate YELP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if YELP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if YELP's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as YELP has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure

CEO

Jeremy Stoppelman (44 yo)

17.83yrs

Tenure

US$10,044,676

Compensation

Mr. Jeremy Stoppelman founded Yelp Inc. in July 2004 and serves as its Chief Executive Officer since inception in July 2004. Prior to Yelp, he completed his first year of Harvard Business School, but dropp...

CEO Compensation Analysis

Compensation vs Market: Jeremy's total compensation ($USD10.04M) is above average for companies of similar size in the Austrian market ($USD1.83M).

Compensation vs Earnings: Jeremy's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: YELP's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: YELP's board of directors are considered experienced (3.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31