September 26, 2024
Top 10 Stock YETI Holdings Hold Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View YETI Holdings Hold

360 METRICS	September 26, 2024
VALUE
VALUE	13
GROWTH
GROWTH	37
SAFETY
SAFETY	69
SENTIMENT
SENTIMENT	81
360° VIEW
360° VIEW	43

ANALYSIS: With an Obermatt 360° View of 43 (better than 43% compared with alternatives), overall professional sentiment and financial characteristics for the stock YETI Holdings are below the industry average. The 360° View is based on consolidating four consolidated indicators, with half below and half above average for YETI Holdings. The consolidated Sentiment Rank has a good rank of 81, which means that professional investors are more optimistic about the stock than for 81% of alternative investment opportunities. It also rates well regarding its financing structure, with the consolidated Safety Rank at 69 or better than 69% of its peers when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. But the stock is expensive and expects low growth. The consolidated Value Rank is only 13, meaning that the share price of YETI Holdings is on the high side, compared with indicators such as revenues, profits, and invested capital. The company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, invested capital growth,and stock returns, with its Growth Rank at 37. ...read more

RECOMMENDATION: With a consolidated 360° View of 43, YETI Holdings is worse than 57% of all alternative stock investment opportunities based on the Obermatt Method. As only half of the consolidated Obermatt Ranks exhibit excellent performance, namely the positive professional market sentiment (Sentiment Rank of 81) and safe financing practices (Safety Rank of 69), the case for investing in this stock needs further thought. The Value and the Safety Ranks are below average. The Safety Rank is the least critical of the four consolidated ranks, because it only reflects financing practices. So the question is: How to assess below-average value against above-average sentiment? This may be a case where growth is in the future, not yet reflected in current performance. Companies that might fall into this category are those with intellectual property, such as technology and pharmaceutical companies. In early phases, they are expensive relative to their size and have a lot of capital on their books, as is the case here. Investors expect a better future and are willing to pay a higher price than is warranted by the current company size. These higher prices drive stock price value down in the short term. In this case, future growth may be the strongest driver of the investment case, reflected by institutional investors' opinions. With a weak Value Rank, the question is how much to sacrifice value at the cost of positive sentiment. Sometimes market sentiment is just hype, but sometimes it is right. You pay more than market-average for this stock, but it may be worth it, if the future of YETI Holdingṣ is bright. Prudent investors may only want to invest a smaller portion of their wealth in such situations. Young investors can carry more risk but should still thrive for sufficient diversification. ...read more

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Sentiment Strategy: Professional Market Sentiment for YETI Holdings very positive

SENTIMENT METRICS	September 26, 2024
ANALYST OPINION
ANALYST OPINION	49
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	89
MARKET PULSE
MARKET PULSE	90
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	81

ANALYSIS: With an Obermatt Sentiment Rank of 81 (better than 81% compared with alternatives) for 2024, overall professional sentiment and engagement for the stock YETI Holdings is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for YETI Holdings. Analyst Opinions are at a rank of 49 (worse than 51% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 50, which indicates a shift in stock research experts opinions for the better. In other words, they are getting more optimistic about stock investments in YETI Holdings. Even better, the Professional Investors rank is 89, meaning that professional investors hold more stock in this company than in 89% of alternative investment opportunities. Pros tend to favor investing in this company. Furthermore, Market Pulse has a rank of 90, which means that the current professional news and professional social networks are upbeat when discussing this company (more positive news than for 90% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 81 (more positive than 81% compared with investment alternatives), YETI Holdings has a reputation among professional investors that is significantly higher than that of its competitors. While analysts are still critical of the company, some are changing their minds. In addition, the professional news channels are optimistic, and many institutional investors have already bought stock in the company. These are encouraging signals, despite the still lower level of analyst recommendations. They may be due to a problematic past, and about to change. The positive sentiment signals are stronger than the negative. ...read more

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Value Strategy: YETI Holdings Stock Price Value low

VALUE METRICS	September 26, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	17
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	58
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	34
DIVIDEND YIELD
DIVIDEND YIELD	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	13

ANALYSIS: With an Obermatt Value Rank of 13 (worse than 87% compared with alternatives), YETI Holdings shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for YETI Holdings. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 58, which means that the stock price compared with what market professionals expect for future profits is lower than for 58% of comparable companies, indicating a good value concerning YETI Holdings's profit levels. But Price-to-Sales is 17 which means that the stock price compared with what market professionals expect for future profits is higher than for 83% of comparable companies, indicating a low value concerning YETI Holdings's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 34 and for dividend yield, which is lower than for 99% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 13, is a sell recommendation based on YETI Holdings's stock price compared with the company's operational size and dividend yields. Can we rely on only one good value indicator? Only if we know the company well. In this case, a high Price-to-Profit Rank, while Price-to-Sales and Price-to-Book are both below the market typical levels, means that the company can charge higher prices for its products and needs less capital to produce them. If this is sustainable, then YETI Holdings is a good investment because profits count most in enterprise valuations. The low dividend yield indicates that the company is confident it can do something with the generated cash that is more valuable than paying the profits out to the shareholders in the form of dividends. ...read more

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Growth Strategy: YETI Holdings Growth Momentum low

GROWTH METRICS	September 26, 2024
REVENUE GROWTH
REVENUE GROWTH	77
PROFIT GROWTH
PROFIT GROWTH	69
CAPITAL GROWTH
CAPITAL GROWTH	7
STOCK RETURNS
STOCK RETURNS	23
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	37

ANALYSIS: With an Obermatt Growth Rank of 37 (better than 37% compared with alternatives), YETI Holdings shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for YETI Holdings. Sales Growth has a rank of 77, which means that, currently, professionals expect the company to grow more than 77% of its competitors. Profit Growth with a rank of 69 is also above average. But Capital Growth has only a rank of 7, and Stock Returns with 23 are also below-average. Stock returns for YETI Holdings have recently been below 77% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 37, is a hold recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for YETI Holdings. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. ...read more

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Safety Strategy: YETI Holdings Debt Financing Safety above-average

SAFETY METRICS	September 26, 2024
LEVERAGE
LEVERAGE	62
REFINANCING
REFINANCING	31
LIQUIDITY
LIQUIDITY	92
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	69

ANALYSIS: With an Obermatt Safety Rank of 69 (better than 69% compared with alternatives), the company YETI Holdings has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of YETI Holdings is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for YETI Holdings. Leverage is at a rank of 62, meaning the company has a below-average debt-to-equity ratio. It has less debt than 62% of its competitors. Liquidity is also good at a rank of 92, meaning the company generates more profit to service its debt than 92% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 31, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 69% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 69 (better than 69% compared with alternatives), YETI Holdings has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for YETI Holdings. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. ...read more

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Combined financial peformance: YETI Holdings Lowest Financial Performance

COMBINED PERFORMANCE	September 26, 2024
VALUE
VALUE	13
GROWTH
GROWTH	37
SAFETY
SAFETY	92
COMBINED
COMBINED	22

ANALYSIS: With an Obermatt Combined Rank of 22 (worse than 78% compared with investment alternatives), YETI Holdings (Leisure Products, USA) shares have lower financial characteristics compared with similar stocks. Shares of YETI Holdings are low in value (priced high) with a consolidated Value Rank of 13 (worse than 87% of alternatives) and show below-average growth (Growth Rank of 37) but are safely financed (Safety Rank of 69), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 22, is a sell recommendation based on YETI Holdings's financial characteristics. As the company YETI Holdings's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 13) and low growth (Obermatt Growth Rank of 37), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 69) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. ...read more

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