Yelp Inc. Common Stock (YELP)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business I can understand, bought at a sensible price, with a durable competitive advantage and honest accounting. Yelp is a local reviews and advertising platform. It connects consumers with businesses and sells ads, an asset-light model that can produce good cash if the network stays relevant. At $18.92 on 2026-10-13, the market values the whole company at about $1.0 billion. The stock trades at a FairStock P/E of 9.14, P/B of 1.68 and EV/EBITDA of 4.37. FairStock’s Graham Number is $23.36, giving a 19.01% margin of safety. Free cash flow is $297.4 million trailing twelve months, a 29.0% FCF yield, and debt is low with D/E of 0.19. Return on equity is 18.19% and ROCE is 11.43%. Those are attractive numbers. Yet the latest filed quarter, fiscal Q2 2026, the quarter ended 2026-06-30, showed revenue of $375.5 million, net income of $31.7 million and diluted EPS of $0.57. A year earlier, fiscal Q2 2025, the quarter ended 2025-06-30, had revenue of $370.4 million, net income of $44.1 million and EPS of $0.67. Revenue grew about 1.4%, but profit fell roughly 28%. For fiscal year 2025, the year ended 2025-12-31, revenue was $1.5 billion, net income $145.6 million and EPS $2.24, so the longer record has been good. FairStock categorizes it as a STALWART, with profit growing 38.4% a year over four years and revenue 9.2%. The Piotroski F-Score is 8/9, but the Altman Z-Score is 0.46. The price is undemanding if profits stabilize; if the recent decline is structural, cheap can become a trap. I want evidence of revenue and profit recovery before treating it as a true bargain.

In plain English: Yelp runs a website and app that help people find and review local businesses, and it sells advertising to those businesses. The company is still profitable and has little debt, but its latest quarterly profit fell from a year earlier and sales barely grew. At the recent price, the shares look inexpensive relative to the company’s profits and the cash it generates, though the slowdown makes it hard to call them a clear bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer