YETI Holdings, Inc. (NYSE: YETI)

Sector: Consumer Cyclical Industry: Leisure CIK: 0001670592
Market Cap 3.97 Bn
P/B 5.65
P/E 24.75
P/S 2.17
ROIC (Qtr) 17.18
Div Yield % 0.00
Rev 1y % (Qtr) 1.95
Total Debt (Qtr) 222.53 Mn
Debt/Equity (Qtr) 0.32
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About

YETI Holdings, Inc., known on the market as YETI, is a company that operates within the outdoor and recreation industry. Its business model is centered on the design, manufacturing, and sale of high-performance, premium-priced products intended for both outdoor enthusiasts and everyday consumers. YETI's offerings are designed to provide superior functionality across various environments, from professional to recreational and outdoor to indoor. YETI's revenue is generated through three primary product categories: Coolers & Equipment, Drinkware,...

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Investment thesis

Bull case

  • Strong operating cash flow of 307.42M provides robust 1.38x coverage of total debt 222.53M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 164.48M provide 7.53x coverage of short-term debt 21.86M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 974.01M provides 4.38x coverage of total debt 222.53M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 265.16M exceeds capital expenditure of 42.26M by 6.27x, indicating strong organic growth funding capability.
  • Retained earnings of 721.28M provide full 3.59x coverage of long-term debt 200.67M, indicating strong internal capital position.

Bear case

  • Operating cash flow of 307.42M barely covers its investment activities of (125.64M), with a coverage ratio of -2.45, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of 265.16M represents just -13.53x of debt issuance (19.59M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 307.42M is outpaced by equity issuance of (272.90M) (-1.13 ratio), indicating concerning reliance on equity markets for funding operations.
  • Cash position of 164.48M provides only -403.14x coverage of interest expenses of (408000), indicating potential refinancing risks in a rising rate environment.
  • Tax assets of 0 provide limited offset against tax liabilities of 14.99M, which is 0x, indicating potential future cash flow pressure from tax obligations.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Leisure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AS Amer Sports, Inc. 22.38 Bn 71.89 3.67 1.87 Bn
2 HAS Hasbro, Inc. 13.30 Bn 46.47 3.26 3.32 Bn
3 PLNT Planet Fitness, Inc. 7.78 Bn 37.79 6.04 2.58 Bn
4 GOLF Acushnet Holdings Corp. 7.40 Bn 80.24 4.75 0.90 Bn
5 LTH Life Time Group Holdings, Inc. 6.29 Bn 21.85 2.16 4.13 Bn
6 MAT Mattel Inc /De/ 5.43 Bn 12.57 1.04 2.59 Bn
7 YETI YETI Holdings, Inc. 3.97 Bn 24.75 2.17 0.22 Bn
8 MSGE Madison Square Garden Entertainment Corp. 2.95 Bn 56.80 2.91 1.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.07 1.19
EV to Cash from Ops. EV/CFO 12.60 -6.09
EV to Debt EV to Debt 17.41 14.49
EV to EBIT EV/EBIT 18.17 -159.90
EV to EBITDA EV/EBITDA 14.19 -4.06
EV to Free Cash Flow [EV/FCF] EV/FCF 14.61 0.74
EV to Market Cap EV to Market Cap 0.98 -0.64
EV to Revenue EV/Rev 2.12 4.65
Price to Book Value [P/B] P/B 5.65 4.75
Price to Earnings [P/E] P/E 24.75 12.00
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -0.51
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.11
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.13
Interest Coverage Int. cover (Qtr) -522.73 -30.68
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 1.78 -13.50
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -41.35 1,190.33
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 13.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -20.29 -111.75
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -11.53 -165.31
EBIT Growth (1y) % EBIT 1y % (Qtr) -19.90 -1,562.20
EBT Growth (1y) % EBT 1y % (Qtr) -19.90 -1,555.34
EPS Growth (1y) % EPS 1y % (Qtr) -17.09 -377.44
FCF Growth (1y) % FCF 1y % (Qtr) 61.73 10.93
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.59 17.65
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.45 0.73
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 0.51 3.31
Current Ratio Curr Ratio (Qtr) 2.16 4.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.32 2.35
Interest Cover Ratio Int Coverage (Qtr) -522.73 -30.68
Times Interest Earned Times Interest Earned (Qtr) -522.73 -30.68
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 14.50 -57.55
EBIT Margin % EBIT Margin % (Qtr) 11.65 -65.38
EBT Margin % EBT Margin % (Qtr) 11.67 -69.55
Gross Margin % Gross Margin % (Qtr) 57.80 46.51
Net Profit Margin % Net Margin % (Qtr) 8.80 -74.45