Don't Judge YETI on Technicals Alone - Check Its Fundamentals!

YETI logged a -8.4% change during today's afternoon session, and is now trading at a price of $41.41 per share. The S&P 500 index moved -0.7% and the Nasdaq posted a -0.6% change. YETI's trading volume is 1,681,647 compared to the stock's average volume of 1,242,980.

YETI shares moved -34.9% over the last 52 weeks, with a high of $71.33 and a low of $27.86. During this time, the stock lagged the S&P 500 index by -23.0%. As of January 2022, the company's 50-day average price is $41.7054. YETI Holdings, Inc. designs, markets, retails, and distributes products for the outdoor and recreation market under the YETI brand. The mid-cap Consumer Cyclical company has 823 full time employees and is based in Austin, TX. YETI has not offered any dividends in the last year.

Snapshot of the Company's Decent Operating Margins with a Positive Growth Rate:

2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $914 $1,092 $1,411
Revenue Growth n/a 19.48% 29.24%
Gross Margins 52.0% 57.6% 57.8%
Gross Margins Growth n/a 10.77% 0.35%
Operating Margins 9.8% 19.6% 19.5%
Operating Margins Growth n/a 100.0% -0.51%
Earnings Per Share $0.58 $1.77 $2.4
EPS Growth n/a 205.17% 35.59%
Free Cash Flow (MM) $38 $343 $81
FCF Growth n/a 799.12% -76.49%
Capital Expenditures (MM) -$49 -$23 -$66
Net Debt / EBITDA 1.97 -0.45 -0.6

YETI Is Reasonably Valued:

Compared to the Consumer Cyclical sector's average of 24.11, YETI has a trailing twelve month P/E ratio of 18.2 and, according to its EPS guidance of 2.83, an expected P/E ratio of 14.6.

YETI's P/B ratio is 6.5 compared to its sector average of 3.11. The company is likely overvalued in terms of its equity. The company's shares are currently trading 174.9% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 1.58 * 6.385) = $15.07

The company's strong cash flows and low debt levels attenuate the company's excessive valuation in terms of its equity.

YETI Is the Subject of Mixed Market Indicators:

15 analysts are following YETI and have set target prices ranging from $40 to $75 per share. On average, they have given the company a rating of buy. At the current price of $41.41, YETI is trading -22.25% away from its average analyst target price of $53.27 per share, implying an analyst consensus of strong upside potential for the stock.

The company has an above average percentage of its shares sold short since 8.8% of the company's shares are tied to short positions. Institutions own 98.8% of YETI's shares, while the insider ownership rate stands at 0.33%. The biggest shareholder is Capital Research Global Investors with a 9% stake in the company worth approximately $324,936,719.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.