Is Yelp Stock a Good Investment?
Yelp Investment Advice | YELP |
- Examine Yelp's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Yelp's leadership team and their track record. Good management can help Yelp navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Interactive Media & Services space and any emerging trends that could impact Yelp's business and its evolving consumer preferences.
- Compare Yelp's performance and market position to its competitors. Analyze how Yelp is positioned in terms of product offerings, innovation, and market share.
- Check if Yelp pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Yelp's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Yelp Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Yelp Inc is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Yelp Stock
Researching Yelp's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 97.0% of the company outstanding shares are owned by institutional investors. The book value of Yelp was at this time reported as 11.11. The company has Price/Earnings To Growth (PEG) ratio of 0.4. Yelp Inc had not issued any dividends in recent years.
To determine if Yelp is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Yelp's research are outlined below:
| Yelp Inc has a strong financial position based on the latest SEC filings | |
| Over 97.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from aol.com: The most popular pasta dish in every state, according to Yelp reviews |
Yelp Quarterly Accounts Payable |
|
Yelp uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Yelp Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Yelp's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 8th of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 8th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Yelp's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Yelp's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2019-05-09 | 2019-03-31 | 0.01 | 0.02 | 0.01 | 100 | ||
2016-02-08 | 2015-12-31 | -0.03 | -0.02 | 0.01 | 33 | ||
2015-02-05 | 2014-12-31 | 0.07 | 0.08 | 0.01 | 14 | ||
2014-02-05 | 2013-12-31 | -0.02 | -0.03 | -0.01 | 50 | ||
2013-05-01 | 2013-03-31 | -0.05 | -0.06 | -0.01 | 20 | ||
2013-02-06 | 2012-12-31 | -0.05 | -0.06 | -0.01 | 20 | ||
2012-11-01 | 2012-09-30 | -0.04 | -0.03 | 0.01 | 25 | ||
2019-11-07 | 2019-09-30 | 0.19 | 0.21 | 0.02 | 10 |
Know Yelp's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Yelp is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Yelp Inc backward and forwards among themselves. Yelp's institutional investor refers to the entity that pools money to purchase Yelp's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Charles Schwab Investment Management Inc | 2024-06-30 | 1.1 M | Fisher Asset Management, Llc | 2024-06-30 | 1.1 M | Prescott General Partners Llc | 2024-06-30 | 796.4 K | Prescott Investors Inc | 2024-06-30 | 796.4 K | Renaissance Technologies Corp | 2024-06-30 | 777.2 K | D. E. Shaw & Co Lp | 2024-06-30 | 760.7 K | Point72 Asset Management, L.p. | 2024-06-30 | 716 K | Nuveen Asset Management, Llc | 2024-06-30 | 713.8 K | Northern Trust Corp | 2024-06-30 | 709.2 K | Blackrock Inc | 2024-06-30 | 11.5 M | Vanguard Group Inc | 2024-06-30 | 9.1 M |
Yelp's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 2.37 B.Market Cap |
|
Yelp's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.11 | 0.12 | |
| Return On Capital Employed | 0.14 | 0.14 | |
| Return On Assets | 0.10 | 0.10 | |
| Return On Equity | 0.13 | 0.14 |
Determining Yelp's profitability involves analyzing its financial statements and using various financial metrics to determine if Yelp is a good buy. For example, gross profit margin measures Yelp's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Yelp's profitability and make more informed investment decisions.
Yelp's Earnings Breakdown by Geography
Evaluate Yelp's management efficiency
Yelp Inc has return on total asset (ROA) of 0.0925 % which means that it generated a profit of $0.0925 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1596 %, meaning that it created $0.1596 on every $100 dollars invested by stockholders. Yelp's management efficiency ratios could be used to measure how well Yelp manages its routine affairs as well as how well it operates its assets and liabilities. As of 11/17/2024, Return On Tangible Assets is likely to grow to 0.12. Also, Return On Capital Employed is likely to grow to 0.14. At this time, Yelp's Total Current Liabilities is relatively stable compared to the past year. As of 11/17/2024, Non Current Liabilities Other is likely to grow to about 43.3 M, while Liabilities And Stockholders Equity is likely to drop slightly above 845.2 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 10.83 | 6.62 | |
| Tangible Book Value Per Share | 9.22 | 5.52 | |
| Enterprise Value Over EBITDA | 16.48 | 15.65 | |
| Price Book Value Ratio | 4.37 | 6.38 | |
| Enterprise Value Multiple | 16.48 | 15.65 | |
| Price Fair Value | 4.37 | 6.38 | |
| Enterprise Value | 3.7 B | 3.9 B |
The decision-making processes within Yelp are key to its success in a competitive market. By evaluating these processes, we assess the stock's potential for future gains.
Beta 1.332 |
Basic technical analysis of Yelp Stock
As of the 17th of November 2024, Yelp maintains the Downside Deviation of 1.5, mean deviation of 1.24, and Market Risk Adjusted Performance of 0.0847. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Yelp Inc, as well as the relationship between them.Yelp's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Yelp insiders, such as employees or executives, is commonly permitted as long as it does not rely on Yelp's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Yelp insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Carmen Orr over a month ago Disposition of 14984 shares by Carmen Orr of Yelp at 38.0007 subject to Rule 16b-3 | ||
David Schwarzbach over two months ago Disposition of 2750 shares by David Schwarzbach of Yelp at 43.63 subject to Rule 16b-3 | ||
Sam Eaton over two months ago Disposition of 10776 shares by Sam Eaton of Yelp at 35.0 subject to Rule 16b-3 | ||
Sam Eaton over three months ago Disposition of 425 shares by Sam Eaton of Yelp at 36.73 subject to Rule 16b-3 | ||
Dan Jedda over six months ago Insider Trading | ||
Jeremy Stoppelman over six months ago Acquisition by Jeremy Stoppelman of 93885 shares of Yelp subject to Rule 16b-3 | ||
Joseph Nachman over six months ago Disposition of 6000 shares by Joseph Nachman of Yelp at 36.0112 subject to Rule 16b-3 |
Yelp's Outstanding Corporate Bonds
Yelp issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Yelp Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Yelp bonds can be classified according to their maturity, which is the date when Yelp Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Volcan Compania Minera Corp BondUSP98047AC08 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 4875 Corp BondUS55336VAG59 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| International Game Technology Corp BondUS460599AD57 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View |
Understand Yelp's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Yelp's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0479 | |||
| Market Risk Adjusted Performance | 0.0847 | |||
| Mean Deviation | 1.24 | |||
| Semi Deviation | 1.38 | |||
| Downside Deviation | 1.5 | |||
| Coefficient Of Variation | 1775.14 | |||
| Standard Deviation | 1.65 | |||
| Variance | 2.72 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | (0.02) | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.0747 | |||
| Maximum Drawdown | 8.65 | |||
| Value At Risk | (2.34) | |||
| Potential Upside | 2.91 | |||
| Downside Variance | 2.25 | |||
| Semi Variance | 1.9 | |||
| Expected Short fall | (1.37) | |||
| Skewness | 0.4199 | |||
| Kurtosis | 1.29 |
| Risk Adjusted Performance | 0.0479 | |||
| Market Risk Adjusted Performance | 0.0847 | |||
| Mean Deviation | 1.24 | |||
| Semi Deviation | 1.38 | |||
| Downside Deviation | 1.5 | |||
| Coefficient Of Variation | 1775.14 | |||
| Standard Deviation | 1.65 | |||
| Variance | 2.72 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | (0.02) | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.0747 | |||
| Maximum Drawdown | 8.65 | |||
| Value At Risk | (2.34) | |||
| Potential Upside | 2.91 | |||
| Downside Variance | 2.25 | |||
| Semi Variance | 1.9 | |||
| Expected Short fall | (1.37) | |||
| Skewness | 0.4199 | |||
| Kurtosis | 1.29 |
Consider Yelp's intraday indicators
Yelp intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Yelp stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Yelp Corporate Filings
F4 | 13th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 8th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
8K | 20th of June 2024 An amendment to a previously filed Form 8-K | ViewVerify |
Yelp Stock media impact
Far too much social signal, news, headlines, and media speculation about Yelp that are available to investors today. That information is available publicly through Yelp media outlets and privately through word of mouth or via Yelp internal channels. However, regardless of the origin, that massive amount of Yelp data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Yelp news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Yelp relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Yelp's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Yelp alpha.
Yelp Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Yelp can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Yelp Inc Historical Investor Sentiment
Investor biases related to Yelp's public news can be used to forecast risks associated with an investment in Yelp. The trend in average sentiment can be used to explain how an investor holding Yelp can time the market purely based on public headlines and social activities around Yelp Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Yelp's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Yelp and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Yelp news discussions. The higher the estimate score, the more favorable the investor's outlook on Yelp.
Yelp Corporate Directors
| Robert Gibbs | Independent Director | Profile | |
| Sharon Rothstein | Independent Director | Profile | |
| Frederick Anderson | Independent Director | Profile | |
| Tony Wells | Independent Director | Profile |
Already Invested in Yelp Inc?
The danger of trading Yelp Inc is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Yelp is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Yelp. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Yelp Inc is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional 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.