Yellow Pages (Y) AI Stock Analysis

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Yellow Pages

(OTC:Y)

69Neutral

The stock score of 69 reflects Yellow Pages' strong valuation metrics and sound financial management, offset by a challenging revenue environment and mixed technical indicators. While the low P/E ratio and high dividend yield make the stock attractive, ongoing revenue declines and EBITDA reduction pose risks. The company's ability to stabilize revenues and improve profitability will be crucial for future performance.

Yellow Pages (Y) vs. S&P 500 (SPY)

Market Cap

C$138.63M

Dividend Yield9.88%

Average Volume (3M)2.59K

Price to Earnings (P/E)5.5

Beta (1Y)0.19

Revenue Growth-10.28%

EPS Growth-31.94%

CountryCA

Employees565

SectorCommunication Services

Sector Strength73

IndustryPublishing

Share Statistics

EPS (TTM)1.84

Shares Outstanding13,752,770

10 Day Avg. Volume2,976

30 Day Avg. Volume2,587

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.67

Price to Cash Flow (P/CF)4.30

P/FCF Ratio4.20

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$10.47

Price Target Upside3.88% Upside

Rating ConsensusHold

Number of Analyst Covering0

Yellow Pages Business Overview & Revenue Model

Company DescriptionYellow Pages (Y) is a well-established directory service company that connects consumers with local businesses. Operating across multiple sectors, Yellow Pages offers both print and digital directories, helping businesses to reach potential customers through targeted advertising. Their core services include online business listings, printed directories, and digital marketing solutions.

How the Company Makes MoneyYellow Pages generates revenue primarily through the sale of advertising space in its print and online directories. Businesses pay to have their listings featured prominently, ensuring greater visibility to potential customers. Additionally, Yellow Pages offers digital marketing services such as website development, search engine optimization (SEO), and social media management, which provide added revenue streams. The company also forms partnerships with various technology and data analytics firms to enhance its service offerings, further contributing to its earnings.

Yellow Pages Financial Statement Overview

Summary

Yellow Pages demonstrates sound profitability and cash management despite revenue declines. The consistent reduction in leverage strengthens its financial position, yet the overall shrinking scale of operations and declining free cash flow warrant careful monitoring.

Income Statement

Positive

The company has experienced a consistent decline in revenue over the past few years, with a significant drop from 2023 to 2024. Gross and net profit margins have been relatively stable, indicating efficient cost management. However, declining revenues remain a concern.

Balance Sheet

Positive

The company has improved its debt-to-equity ratio, reflecting reduced leverage. Return on Equity (ROE) remains strong, driven by profitability. However, the shrinking asset base and stockholders' equity suggest potential risks in long-term financial stability.

Cash Flow

Positive

The company exhibits strong operating cash flow relative to net income, highlighting effective cash management. Free cash flow has been positive but shows a declining trend, which could impact future growth investments.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
214.83M	239.43M	268.28M	287.65M	333.54M
	Gross Profit
50.84M	76.86M	96.57M	102.00M	129.44M
	EBIT
35.37M	61.00M	77.94M	77.02M	93.65M
	EBITDA
50.34M	75.57M	93.08M	85.95M	119.71M
	Net Income Common Stockholders
24.98M	47.40M	73.43M	70.64M	60.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
46.46M	23.23M	45.61M	125.04M	154.70M
	Total Assets
163.87M	167.51M	207.30M	305.23M	367.91M
	Total Debt
39.94M	43.91M	47.13M	49.88M	153.99M
	Net Debt
-4.27M	20.68M	3.22M	-73.68M	497.00K
	Total Liabilities
110.07M	125.26M	141.52M	189.10M	338.61M
	Stockholders Equity
53.80M	42.26M	65.78M	116.13M	29.30M
Cash Flow		Free Cash Flow
36.54M	42.81M	44.50M	99.50M	121.42M
	Operating Cash Flow
39.02M	46.77M	49.50M	104.58M	127.00M
	Investing Cash Flow
-513.00K	-2.50M	-3.67M	-4.48M	-3.01M
	Financing Cash Flow
-17.54M	-64.94M	-125.49M	-130.03M	-14.91M

Yellow Pages Technical Analysis

Technical Analysis Sentiment

Negative

Last Price10.08

Price Trends

50DMA

10.75

Negative

100DMA

10.88

Negative

200DMA

10.02

Positive

Market Momentum

MACD

-0.04

Negative

RSI

52.71

Neutral

STOCH

59.62

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:Y, the sentiment is Negative. The current price of 10.08 is below the 20-day moving average (MA) of 10.48, below the 50-day MA of 10.75, and above the 200-day MA of 10.02, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 59.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:Y.

Yellow Pages Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QBR.A	79 Outperform	C$8.44B	11.58	38.49%	3.55%	3.76%	14.27%
POW	75 Outperform	C$31.32B	11.73	12.45%	4.71%	-7.62%	25.47%
Y	69 Neutral	C$138.63M	5.47	52.74%	9.88%	-10.28%	-31.94%
RAY.A	64 Neutral	C$520.67M	―	-6.14%	3.94%	9.94%	-147.16%
Sector *	58 Neutral	$25.04B	3.23	-10.53%	4.39%	2.30%	-43.13%
CJR.B	51 Neutral	$24.93M	―	175.81%	―	-15.32%	-85.65%
TGO	42 Neutral	C$21.00M	―	-119.27%	―	0.50%	0.06%

* Communication Services Sector Average

Performance Comparison

TSE:Y

Yellow Pages

10.18

1.31

14.77%

TSE:CJR.B

Corus Entertainment

0.12

-0.58

-82.86%

TSE:QBR.A

Quebecor Inc Cl A MV

37.36

8.72

30.45%

TSE:RAY.A

Stingray Digit SV

7.75

0.05

0.65%

TSE:TGO

TeraGo Inc.

1.01

-0.94

-48.21%

TSE:POW

Power Corp of Canada

48.90

14.21

40.96%

Yellow Pages Earnings Call Summary

Earnings Call Date: Feb 13, 2025 | % Change Since: -7.96% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted improvements in revenue decrease rates and new customer acquisitions, alongside the completion of pension plan payments and a share price increase. However, significant revenue declines in digital and print products, a drastic reduction in adjusted EBITDA, and net income decreases indicate financial challenges. Workforce reductions add to the concerns, resulting in a mixed but cautiously optimistic outlook.

Highlights

Improvement in Revenue Decrease Rate

Revenue decreased by 8.1% year-over-year, amounting to $51.4 million for Q4 2024, an improvement from a 9.4% decrease in the previous quarter.

Increase in New Customer Acquisitions

New customer acquisitions were 6% higher than the same quarter last year and 28% higher for the year overall.

Completion of Pension Plan Payments

Completed voluntary payments into the pension plan, reaching a wind-up ratio of over 95%, and the Board approved a plan to de-risk the pension plan.

Dividend Declaration

Declared a dividend of $0.25 per common share to be paid on March 17, 2025.

Share Price Increase

The company's share price increased by 23% during the fourth quarter.

Lowlights

Revenue Decline in Digital and Print Products

Digital revenues decreased by 7.2% year-over-year, and print revenues decreased by 11.5% year-over-year for Q4 2024.

Significant Decrease in Adjusted EBITDA

Adjusted EBITDA decreased by $8 million or 49.3% year-over-year to $8.2 million for Q4 2024. Adjusted EBITDA margin decreased to 16% from 29.1% in the same period last year.

Net Income Decline

Net income decreased to $2.7 million for Q4 2024 compared to $12.2 million for the same period last year.

Workforce Reduction

Workforce decreased by 10% to 565 employees compared to 627 at the same date last year.

Company Guidance

During the Yellow Pages Fourth Quarter 2024 earnings call, the company provided detailed guidance on its financial performance and strategic initiatives. Revenue for the fourth quarter was reported at $51.4 million, reflecting an 8.1% year-over-year decrease, with digital revenues down by 7.2% and print revenues by 11.5%. Despite these declines, the company noted a favorable trend in revenue changes compared to the previous quarter, with new customer acquisitions rising by 6% for the quarter and 28% for the year. Adjusted EBITDA for the quarter stood at 16.0% of revenue, impacted by stock-based compensation adjustments due to a 23% increase in share price, and for the full year, it was 23.7%. The company's cash balance was healthy at approximately $49 million, and it completed $6 million in voluntary pension contributions for the year, achieving a wind-up ratio of over 95%. The board declared a dividend of $0.25 per common share, underscoring their confidence in the company's financial health.

Yellow Pages Corporate Events

DividendsBusiness Operations and StrategyFinancial Disclosures

Yellow Pages Limited Reports 2024 Financial Results, Declares Dividend

Positive

Feb 13, 2025

Yellow Pages Limited announced its financial results for the fourth quarter and full year 2024, highlighting progress toward revenue stability and profitability. The company reported a favorable shift in its revenue curve, with an increase in new customer acquisitions and a solid cash balance of $49 million. Despite a non-cash charge affecting reported earnings due to stock-based compensation, Adjusted EBITDA margins remained healthy, supported by significant investments in revenue initiatives. Additionally, the company completed its voluntary pension plan payments and declared a quarterly dividend, reflecting its commitment to shareholders and financial stability.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.