YALAYalla Group Limited
Is the business good?
A genuinely good business: earnings fully cash-backed (1.2×) and elite returns on assets.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 18% = margin × turnover × leverage.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is YALA?
Yalla Group Limited earns 68% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 59 points above what the capital costs: growth creates value
- Operating margin
- 36%
Operating margin · Software - Application median 6.4% · fiscal year to FY2025
- Cash conversion
- 1.16×
Cash conversion · 1.57× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.7%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 2.8% |
| FY2021 | 30% |
| FY2022 | 26% |
| FY2023 | 30% |
| FY2024 | 36% |
| FY2025 | 36% |
Details›
- Gross marginfiscal year to FY2025
- 67%
- Operating marginfiscal year to FY2025
- 36%
- Net marginfiscal year to FY2025
- 43%
- Free cash flow margin
- 40%
- R&D as % of revenue
- 10%
- Revenue, trailing twelve months
- $342M
- Free cash flow, trailing twelve months
- $136M
- Net income, trailing twelve months
- $148M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 68%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Application
Ranks #4 of 96 by RyuScore