NYSE:YELP

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Yelp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: YELP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.2%

YELP

4.4%

US Interactive Media and Services

1.0%

US Market


1 Year Return

-33.8%

YELP

21.0%

US Interactive Media and Services

4.1%

US Market

Return vs Industry: YELP underperformed the US Interactive Media and Services industry which returned 21.2% over the past year.

Return vs Market: YELP underperformed the US Market which returned 3.7% over the past year.


Shareholder returns

YELPIndustryMarket
7 Day-0.2%4.4%1.0%
30 Day2.3%14.4%5.4%
90 Day-36.8%6.5%-5.7%
1 Year-33.8%-33.8%21.1%21.0%6.5%4.1%
3 Year-24.9%-24.9%38.0%37.8%28.3%19.8%
5 Year-57.1%-57.1%127.5%126.8%52.2%35.0%

Price Volatility Vs. Market

How volatile is Yelp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

27.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: YELP ($20.83) is trading below our estimate of fair value ($28.54)

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 (62.5x) compared to the Interactive Media and Services industry average (29.6x).

PE vs Market: YELP is poor value based on its PE Ratio (62.5x) compared to the US market (15x).


Price to Earnings Growth Ratio

PEG Ratio: YELP is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: YELP is good value based on its PB Ratio (2x) compared to the US Interactive Media and Services industry average (2.3x).


Next Steps

Future Growth

How is Yelp forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

88.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: YELP's forecast earnings growth (88.4% per year) is above the savings rate (2.2%).

Earnings vs Market: YELP's earnings (88.4% per year) are forecast to grow faster than the US market (21.2% per year).

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

Revenue vs Market: YELP's revenue (6% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: YELP's revenue (6% 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 low in 3 years time (5.9%).


Next Steps

Past Performance

How has Yelp performed over the past 5 years?

33.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: YELP has high quality earnings.

Growing Profit Margin: YELP's current net profit margins (2.3%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: YELP's earnings have grown significantly by 33% per year over the past 5 years.

Accelerating Growth: YELP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: YELP had negative earnings growth (-59.3%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (-16.7%).


Return on Equity

High ROE: YELP's Return on Equity (3.1%) is considered low.


Next Steps

Financial Health

How is Yelp's financial position?


Financial Position Analysis

Short Term Liabilities: YELP's short term assets ($594.9M) exceed its short term liabilities ($140.7M).

Long Term Liabilities: YELP's short term assets ($594.9M) exceed its long term liabilities ($182.1M).


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


Next Steps

Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of YELP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Jeremy Stoppelman (42yo)

15.83yrs

Tenure

US$6,310,987

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Jeremy's total compensation ($USD6.31M) is about average for companies of similar size in the US market ($USD4.92M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeremy Stoppelman
Co-Founder15.83yrsUS$6.31m3.13% $46.9m
Joseph Nachman
Chief Operating Officer3.75yrsUS$3.25m0.16% $2.5m
Laurence Wilson
Chief Administrative Officer2.58yrsUS$2.28m0.18% $2.7m
Vivek Patel
Chief Product Officerno dataUS$2.77m0.068% $1.0m
James Miln
Vice President of Financial Planning & Analysisno dataUS$1.70m0.0066% $98.7k
David Schwarzbach
Chief Financial Officer0.25yrno datano data
Ronald Clark
Investor Relationsno datano datano data
Vince Sollitto
Senior Vice President of Communications & Public Affairsno datano datano data
Chad Richard
Senior Vice President of Business & Corporate Development4.25yrsno datano data
Daniel Kimball
Senior Vice President of Marketingno datano datano data

3.8yrs

Average Tenure

45.5yo

Average Age

Experienced Management: YELP's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeremy Stoppelman
Co-Founder15.83yrsUS$6.31m3.13% $46.9m
Fred Anderson
Independent Director9.25yrsUS$39.47k0.0062% $92.2k
Sharon Rothstein
Independent Non-Executive Director1.17yrsUS$350.59k0.0017% $25.5k
Diane Irvine
Independent Chairperson of the Board4.67yrsUS$65.76k0.023% $339.8k
Brian Sharples
Independent Director1.17yrsUS$354.70kno data
George Hu
Independent Director1.17yrsUS$353.33k0.00097% $14.5k
Robert Gibbs
Independent Director8yrsUS$36.94k0.0054% $80.6k
Christine Barone
Independent Director0.17yrno datano data

2.9yrs

Average Tenure

53.5yo

Average Age

Experienced Board: YELP's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: YELP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Yelp Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yelp Inc.
  • Ticker: YELP
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$1.497b
  • Shares outstanding: 71.89m
  • Website: https://www.yelp.com

Number of Employees


Location

  • Yelp Inc.
  • 140 New Montgomery Street
  • 9th Floor
  • San Francisco
  • California
  • 94105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
YELPNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2012
Y9LDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2012
YELPSWX (SIX Swiss Exchange)YesCommon StockCHCHFMar 2012
YELPWBAG (Wiener Boerse AG)YesCommon StockATEURMar 2012
YELPBASE (Buenos Aires Stock Exchange)CEDEAR EACH 2 REP 1 COM USD0.000001ARARSApr 2019

Biography

Yelp Inc. operates a platform that connects consumers with local businesses in the United States, Canada, and internationally. The company’s platform covers various local business categories, including restaurants, shopping, home and local services, beauty and fitness, health, and other categories. It provides free and paid advertising products to businesses, as well as enables businesses to deliver targeted search advertising to local audiences through its Website and mobile application; and business listing products. The company’s Yelp platform enables consumers to order flowers, purchase event tickets, and book spa and salon appointments. In addition, it offers Yelp Deals that allow local business owners to create promotional discounted deals for their products and services; and Gift Certificates. Further, the company provides other services comprising Yelp Reservations that provide restaurants, nightlife, and other venues with the ability to offer online reservations directly from their Yelp business listing pages; Yelp Waitlist, a subscription-based waitlist management solution that allows consumers to check wait times and join waitlists remotely, as well as businesses to manage seating and server rotation; and Yelp Knowledge program that offers business owners local analytics and insights through access to its historical data and other proprietary content. Additionally, it provides content licensing, as well as allows third-party data providers to update and manage business listing information on behalf of businesses. The company offers its products directly through its sales force; indirectly through partners; and online through its Website, as well as non-advertising partner arrangements. It has strategic partnership with Grubhub for providing consumers with a selection of restaurants and delivery options. Yelp Inc. was founded in 2004 and is headquartered in San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 01:47
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.