YELPYelp Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (2.9×) and margins widening.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 21% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is YELP?
Yelp Inc. earns 25% 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% · 16 points above what the capital costs: growth creates value
- Operating margin
- 12%
Operating margin · Internet Content & Information median 4.9% · 12 months to Q2 2026
- Cash conversion
- 2.94×
Cash conversion · 2.51× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −15%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −4.4% |
| FY2021 | 3.0% |
| FY2022 | 4.9% |
| FY2023 | 5.9% |
| FY2024 | 11% |
| FY2025 | 13% |
Details›
- Gross margin12 months to Q2 2026
- 90%
- Operating margin12 months to Q2 2026
- 12%
- Net margin12 months to Q2 2026
- 8.6%
- Free cash flow margin
- 20%
- Revenue, trailing twelve months
- $1.47B
- Free cash flow, trailing twelve months
- $297M
- Net income, trailing twelve months
- $127M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 25%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Internet Content & Information
Ranks #1 of 31 by RyuScore