YEXTYext, Inc.
Is the business good?
The checks split: earnings fully cash-backed (1.6×) and margins widening, but returns that lean on debt.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 69% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is YEXT?
Yext, Inc. earns 30% 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% · 21 points above what the capital costs: growth creates value
- Operating margin
- 8.3%
Operating margin · Software - Infrastructure median 5.8% · 12 months to Q2 2027
- Cash conversion
- 1.61×
Cash conversion · 8.40× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −21%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | −27% |
| FY2022 | −23% |
| FY2023 | −16% |
| FY2024 | −1.5% |
| FY2025 | −7.7% |
| FY2026 | 10.0% |
Details›
- Gross margin12 months to Q2 2027
- 74%
- Operating margin12 months to Q2 2027
- 8.3%
- Net margin12 months to Q2 2027
- 5.9%
- Free cash flow margin
- 12%
- R&D as % of revenue
- 19%
- Revenue, trailing twelve months
- $443M
- Free cash flow, trailing twelve months
- $53M
- Net income, trailing twelve months
- $26M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 30%
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, Infrastructure
Ranks #30 of 80 by RyuScore