Yeti (YETI 0.78%) has established itself as a premium brand in the outdoor recreation and lifestyle products industry. Let's take a closer look at how this cooler and drinkware maker stacks up according to Motley Fool's AI-powered Moneyball analysis.
The Power of AI-Generated Investment Scores
The Motley Fool's Moneyball database leverages artificial intelligence to evaluate companies across multiple dimensions, providing investors with comprehensive, data-driven insights to inform investing research and decision-making.
How Moneyball's Scoring Works
Motley Fool Moneyball is a proprietary system that combines AI analysis with expert human oversight to generate scores that reflect a company's strength across key performance metrics, from financial health to technological capabilities. The higher the score, the better a company is inside that category relative to the universe of stocks in the Moneyball database.
Breaking Down Yeti's Scores
The Superscore represents the unification of all Moneyball scores into a single score for public companies. Yeti's Superscore of 72/100 is a strong overall score. The standout metric is its Financial score of 91/100, indicating exceptional financial health.
Yeti's Moneyball Scorecard:
- Superscore: 72/100
- Financial: 91/100
- Technology: 51/100
- Product: 76/100
- Leadership: 62/100
- GARP: 87/100
- Surge: 41/100
- ROUNTA: 36%
- AI Implementation: 27/100
NYSE: YETI
Key Data Points
Standout Metrics and Areas for Growth
Return on unleveraged net tangible assets (ROUNTA) is a metric Warren Buffett favors for measuring efficiency in generating returns from physical assets. Yeti's ROUNTA of 36% demonstrates solid operational efficiency -- and helps explain why the company has such a high Financial score.
Yeti's Product score of 76/100 reflects its strong market position, while the weaker Tech and AI scores could suggest the company is at risk of falling behind technologically.
Looking to the Future
Yeti's high GARP (growth at a reasonable price) score of 87/100 indicates the stock may be attractively valued given its performance and growth prospects. I tend to agree as I look at Yeti's numbers.
The stock trades at a free cash flow yield of 5.2% and 18 times trailing earnings, both reasonable numbers bolstered by Yeti's continued revenue growth, a healthy balance sheet with $280 million in net cash, and strong margins on the top and bottom lines.
What These Scores Mean for Investors
Yeti's strong financial metrics and product scores paint a picture of a well-run company with solid market positioning, with an attractive GARP score suggesting compelling risk-reward prospects. However, lower technology and AI scores indicate the company's tech and automation capabilities will be key areas to watch to ensure it maintains its competitive edge.
