NYSE:YELP

Stock Analysis Report

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 with reasonable growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.5%

YELP

2.8%

US Interactive Media and Services

2.0%

US Market


1 Year Return

0.7%

YELP

33.7%

US Interactive Media and Services

23.6%

US Market

Return vs Industry: YELP underperformed the US Interactive Media and Services industry which returned 33.3% over the past year.

Return vs Market: YELP underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

YELPIndustryMarket
7 Day3.5%2.8%2.0%
30 Day7.3%8.7%3.9%
90 Day9.1%18.1%12.0%
1 Year0.7%0.7%33.8%33.7%26.2%23.6%
3 Year-11.1%-11.1%66.1%65.9%53.2%43.3%
5 Year-33.8%-33.8%137.1%136.4%75.7%56.3%

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?

41.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: YELP ($36.59) is trading below our estimate of fair value ($62.35)

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 (51x) compared to the Interactive Media and Services industry average (30.4x).

PE vs Market: YELP is poor value based on its PE Ratio (51x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: YELP is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: YELP is overvalued based on its PB Ratio (3.7x) compared to the US Interactive Media and Services industry average (2.7x).


Next Steps

Future Growth

How is Yelp forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

21.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: YELP's forecast earnings growth (21% per year) is above the savings rate (1.7%).

Earnings vs Market: YELP's earnings (21% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: YELP's revenue (8.5% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: YELP's revenue (8.5% 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 (13.8%).


Next Steps

Past Performance

How has Yelp performed over the past 5 years?

40.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: YELP has high quality earnings.

Growing Profit Margin: YELP's current net profit margins (5.6%) are lower than last year (17.9%).


Past Earnings Growth Analysis

Earnings Trend: YELP's earnings have grown significantly by 40.3% 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 (-66.2%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (15.9%).


Return on Equity

High ROE: YELP's Return on Equity (7.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Yelp's financial position?


Financial Position Analysis

Short Term Liabilities: YELP's short term assets ($499.3M) exceed its short term liabilities ($136.1M).

Long Term Liabilities: YELP's short term assets ($499.3M) exceed its long term liabilities ($190.1M).


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

Inventory Level: YELP has a high level of physical assets or inventory.

Debt Coverage by Assets: YELP's debt is not covered by short term assets (assets are -1.7567521799582E+16x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.4%forecastin3Years0%

Current dividend yield vs market & industry

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

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

What is the CEO of Yelp's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Jeremy Stoppelman (42yo)

15.5yrs

Tenure

US$5,457,886

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 ($USD5.46M) is about average for companies of similar size in the US market ($USD4.99M).

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


Management Age and Tenure

2.8yrs

Average Tenure

45.5yo

Average Age

Experienced Management: YELP's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

53.5yo

Average Age

Experienced Board: YELP's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$154,62522 Feb 19
Alan Ramsay
EntityIndividual
Shares4,040
Max PriceUS$38.27

Ownership Breakdown

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


Management Team

  • Jeremy Stoppelman (42yo)

    Co-Founder

    • Tenure: 15.5yrs
    • Compensation: US$5.46m
  • Chad Richard

    Senior Vice President of Business & Corporate Development

    • Tenure: 3.9yrs
  • Laurence Wilson (47yo)

    Chief Administrative Officer

    • Tenure: 2.3yrs
    • Compensation: US$2.05m
  • Dan Kimball (44yo)

    Senior Vice President of Marketing

    • Andrea Rubin

      Senior Vice President of Community

      • Vince Sollitto

        Senior Vice President of Communications & Public Affairs

        • Jed Nachman (47yo)

          Chief Operating Officer

          • Tenure: 3.4yrs
          • Compensation: US$3.52m
        • Carolyn Patterson

          Senior Vice President of People Operations

          • Tenure: 2.2yrs
        • Ron Clark Clark

          Investor Relations

          • James Miln

            Interim CFO and VP of Financial Planning & Analysis

            • Tenure: 0.3yrs

          Board Members

          • Mariam Naficy (48yo)

            Independent Director

            • Tenure: 6yrs
            • Compensation: US$22.49k
          • Fred Anderson (75yo)

            Independent Director

            • Tenure: 8.9yrs
            • Compensation: US$33.98k
          • Sharon Rothstein (61yo)

            Director

            • Tenure: 0.8yrs
          • Diane Irvine (60yo)

            Chairperson of the Board

            • Tenure: 4.3yrs
            • Compensation: US$59.96k
          • Brian Sharples (59yo)

            Director

            • Tenure: 0.8yrs
          • Jeremy Stoppelman (42yo)

            Co-Founder

            • Tenure: 15.5yrs
            • Compensation: US$5.46m
          • George Hu (44yo)

            Director

            • Tenure: 0.8yrs
          • Robert Gibbs (48yo)

            Independent Director

            • Tenure: 7.7yrs
            • Compensation: US$28.99k

          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$2.563b
          • Shares outstanding: 70.20m
          • 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

          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, beauty and fitness, arts, entertainment and events, home and local services, health, nightlife, travel and hotel, auto, and others. 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 products for local business owners to sell full-price gift certificates directly to customers through their business listing pages. 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; and 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. Its other services also include Yelp WiFi Marketing product for businesses to create on-premises WiFi access for customers and advertise products on the WiFi log-in page, as well as collect contact and social media information from customers. 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. 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 Analysis2020/01/19 00:25
          End of Day Share Price2020/01/17 00:00
          Earnings2019/09/30
          Annual Earnings2018/12/31


          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.