YELP shares have a strong debt-to-equity ratio but their quick ratio which reads 13.60 is strong and might cause problems for them later in the future.
Even though there was a rise of +8.42% in revenue, the company failed to succeed in outperforming the industry average of 10.78%. For the most recent quarter, the net income has jumped by +88.57%. This strength in their income has affected them and thus increased their earnings to $21.09 M. The 7.98% yoy growth of YELP’s revenue has gone up that of the industry average by -3.04%. For the past 12 months, Yelp Inc. revenue has gone up by 11.02%. The sustained growth in their revenue has helped boost their earnings per share.
Yelp Inc. (YELP) has seen their earnings per share increased to $0.17 during the last quarter in comparison to the same quarter last year. They have recorded a 39.89% growing earnings per share earnings. They have recorded a 39.89% growing earnings per share earnings. Analysts expect increase in earnings is also on the cards next quarter with an average estimate at $0.10.
The 12-month return on equity has significantly fallen to 16.11 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Technology sector, the industry average is 21.15 while 17.89 is of the sector.
YELP total operating cash flow had jumped to $55.18 billion compared to $22.64 billion in the same quarter last year. Also, looking at the price to cash flow of the company and the industry average, the 12.62 ratio of the stock is lower than the industry’s 19.76.
Yelp Inc. (NYSE:YELP) has a price-to-earnings ratio of 16.89 which is lower than the 25.67 industry average at the moment. In addition to their unfavorable P/E ratio, Yelp Inc. has maintained a gross margin of 93.47. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is 14.64 when compared to 11.68 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, Yelp Inc. ROE is above 17.89 that of both the sector average.
The operating profit margin for Yelp Inc. (YELP) is 20.11%, a figure which is considered to be weak. It has gone 23.57 from the 5.71 over the past 5 years. In addition to this, their operating margin is -3.46 lower than the industry average.
The net profit margin which stood at 5.21 on average in the past 5 years has jumped to 18.04 in the last 12 months. Added to that, this ratio has missed the industry net margin that stands at 25.00.
Analysts meanwhile rate Yelp Inc. (NYSE:YELP) as a buy. Still some above discussed indicators of the $2.85B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the YELP shares to either perform positively or negatively when compared to other stocks. The primary strengths of Yelp Inc. can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.