Yeti (NYSE: YETI) 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 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.
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.
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:
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.
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.
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.
