Yelp Inc Stock Beneish M Score

YELP Stock  USD 34.09  0.11  0.32%   
This module uses fundamental data of Yelp to approximate the value of its Beneish M Score. Yelp M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Yelp Piotroski F Score and Yelp Altman Z Score analysis.
  
At this time, Yelp's Debt Equity Ratio is relatively stable compared to the past year. As of 02/28/2025, Debt Ratio is likely to grow to 0.17, while Net Debt To EBITDA is likely to drop (1.43). At this time, Yelp's Net Income Per Share is relatively stable compared to the past year. As of 02/28/2025, Sales General And Administrative To Revenue is likely to grow to 0.18, while Payables Turnover is likely to drop 7.60.
At this time, it appears that Yelp Inc is an unlikely manipulator. The earnings manipulation may begin if Yelp's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Yelp executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Yelp's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.07
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.99

Focus
Asset Quality

0.75

Focus
Expense Coverage

1.09

Focus
Gross Margin Strengs

1.12

Focus
Accruals Factor

1.09

Focus
Depreciation Resistance

0.97

Focus
Net Sales Growth

0.53

Focus
Financial Leverage Condition

1.55

Focus

Yelp Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Yelp's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables181.4 M172.8 M
Sufficiently Up
Slightly volatile
Total Revenue743.8 M1.4 B
Way Down
Slightly volatile
Total Assets790.4 M1.2 B
Way Down
Slightly volatile
Total Current Assets542.5 M717.8 M
Way Down
Slightly volatile
Non Current Assets Total302.7 M449.1 M
Way Down
Slightly volatile
Property Plant Equipment96.6 M88.8 M
Significantly Up
Slightly volatile
Depreciation And Amortization45.9 M40.4 M
Fairly Up
Slightly volatile
Selling General Administrative105.9 M185 M
Way Down
Slightly volatile
Total Current Liabilities212.4 M202.2 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total66.5 M102.7 M
Way Down
Slightly volatile
Short Term Debt73.3 M87.9 M
Fairly Down
Slightly volatile
Gross Profit Margin1.020.9124
Moderately Up
Pretty Stable

Yelp Inc Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Yelp's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Yelp in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Yelp's degree of accounting gimmicks and manipulations.

About Yelp Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

45.92 Million

29.6M35.3M41.2M42.8M49.4M108.8109.696.5M70.3M40.4M45.9M100%
At this time, Yelp's Depreciation And Amortization is relatively stable compared to the past year.

Yelp Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Yelp. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
202020212022202320242025 (projected)
Net Receivables88.4M107.4M163.2M150.3M172.8M181.4M
Total Revenue872.9M1.0B1.2B1.3B1.4B743.8M
Total Assets1.2B1.1B1.0B1.0B1.2B790.4M
Total Current Assets712.7M644.7M596.0M624.2M717.8M542.5M
Net Debt(395.8M)(311.6M)(180.0M)(226.6M)(204.0M)(214.1M)
Short Term Debt102.3M80.5M79.3M76.5M87.9M73.3M
Operating Income(31.1M)31.5M58.4M79.0M151.0M158.6M
Investments286.2M(27.7M)(126.1M)(61.3M)(70.5M)(67.0M)

Yelp ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Yelp's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Yelp's managers, analysts, and investors.
72.5%
Environmental
65.3%
Governance
71.4%
Social

About Yelp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Yelp Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Yelp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Yelp Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Pair Trading with Yelp

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Yelp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Yelp will appreciate offsetting losses from the drop in the long position's value.

Moving against Yelp Stock

  0.65ZH Zhihu Inc ADRPairCorr
  0.55GIFT RDE, Inc Symbol ChangePairCorr
  0.49FENG Phoenix New MediaPairCorr
  0.46CCG Cheche Group ClassPairCorr
  0.44IAC IAC IncPairCorr
The ability to find closely correlated positions to Yelp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Yelp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Yelp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Yelp Inc to buy it.
The correlation of Yelp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Yelp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Yelp Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Yelp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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.


 

Trending Assets

OB
Outbrain
5.26  -0.18  -3.31 
SNAP
Snap Inc
9.99  -0.17  -1.67 
GOOGL
Alphabet Class A
168.50  -4.23  -2.45 
ONFO
Onfolio Holdings
1.29  -0.09  -6.52 
News Freq…Investor S…