Yelp Profitability Analysis
YELP Stock | USD 37.95 0.43 1.15% |
Net Income | First Reported 2009-12-31 | Previous Quarter 58.2 M | Current Value 27.4 M | Quarterly Volatility 22.9 M |
Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
---|---|---|---|---|---|---|---|---|---|
Gross Profit Margin | 1.02 | 0.883 |
|
|
For Yelp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Yelp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Yelp Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Yelp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Yelp Inc over time as well as its relative position and ranking within its peers.
Yelp |
Is Yelp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Yelp. If investors know Yelp will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Yelp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.331 | Earnings Share 1.35 | Revenue Per Share 19.316 | Quarterly Revenue Growth 0.108 | Return On Assets 0.0699 |
The market value of Yelp Inc is measured differently than its book value, which is the value of Yelp that is recorded on the company's balance sheet. Investors also form their own opinion of Yelp's value that differs from its market value or its book value, called intrinsic value, which is Yelp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Yelp's market value can be influenced by many factors that don't directly affect Yelp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Yelp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Yelp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Yelp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Yelp Inc Price To Earning vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Yelp's current stock value. Our valuation model uses many indicators to compare Yelp value to that of its competitors to determine the firm's financial worth. Yelp Inc is rated first in return on equity category among related companies. It is rated fourth in price to earning category among related companies reporting about 402.43 of Price To Earning per Return On Equity. At this time, Yelp's Return On Equity is relatively stable compared to the past year.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Yelp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Yelp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Yelp's earnings, one of the primary drivers of an investment's value.Yelp Price To Earning vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Yelp |
| = | 0.14 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Yelp |
| = | 54.69 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Yelp Price To Earning Comparison
Yelp is currently under evaluation in price to earning category among related companies.
Yelp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Yelp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Yelp will eventually generate negative long term returns. The profitability progress is the general direction of Yelp's change in net profit over the period of time. It can combine multiple indicators of Yelp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last Reported | Projected for 2024 | ||
Accumulated Other Comprehensive Income | -12.2 M | -12.8 M | |
Operating Income | 114.9 M | 120.6 M | |
Income Before Tax | 105.1 M | 110.3 M | |
Total Other Income Expense Net | -9.8 M | -9.3 M | |
Net Income | 99.2 M | 104.1 M | |
Income Tax Expense | 5.9 M | 6.2 M | |
Net Income From Continuing Ops | 91.9 M | 96.5 M | |
Non Operating Income Net Other | 9.7 M | 10.2 M | |
Net Income Applicable To Common Shares | 41.8 M | 27.5 M | |
Interest Income | 2.6 M | 2.5 M | |
Net Interest Income | 17.1 M | 17.9 M | |
Change To Netincome | 156.4 M | 102.2 M | |
Net Income Per E B T | 0.94 | 1.29 |
Yelp Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Yelp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Yelp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Yelp's important profitability drivers and their relationship over time.
Yelp Profitability Trends
Yelp profitability trend refers to the progression of profit or loss within a business. An upward trend means that Yelp's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Yelp's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Yelp Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Yelp different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Yelp in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Yelp's future profitability.
Click cells to compare fundamentals
Use Yelp in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Yelp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Yelp will appreciate offsetting losses from the drop in the long position's value.Yelp Pair Trading
Yelp Inc Pair Trading Analysis
The ability to find closely correlated positions to Yelp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Yelp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Yelp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Yelp Inc to buy it.
The correlation of Yelp is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Yelp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Yelp Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Yelp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Yelp position
In addition to having Yelp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Preferred Stock ETFs Thematic Idea Now
Preferred Stock ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Preferred Stock ETFs theme has 15 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Preferred Stock ETFs Theme or any other thematic opportunities.
View All Next | Launch |
Check out Your Current Watchlist. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Complementary Tools for Yelp Stock analysis
When running Yelp's price analysis, check to measure Yelp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Yelp is operating at the current time. Most of Yelp's value examination focuses on studying past and present price action to predict the probability of Yelp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Yelp's price. Additionally, you may evaluate how the addition of Yelp to your portfolios can decrease your overall portfolio volatility.
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
CEOs Directory Screen CEOs from public companies around the world | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |
To fully project Yelp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Yelp Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Yelp's income statement, its balance sheet, and the statement of cash flows.