tiprankstipranks
Trending News
More News >
Yellow Pages (TSE:Y)
TSX:Y

Yellow Pages (Y) AI Stock Analysis

Compare
173 Followers

Top Page

TS

Yellow Pages

(TSX:Y)

Rating:71Outperform
Price Target:
C$12.50
▲(10.42%Upside)
Yellow Pages' stock score reflects a blend of sound financial management and strategic corporate actions, offset by revenue declines and financial pressures. The low valuation and high dividend yield provide a strong investment case, while bullish technical indicators suggest positive short-term momentum. The earnings call and corporate events depict a company proactively managing challenges and positioning for future stability.

Yellow Pages (Y) vs. iShares MSCI Canada ETF (EWC)

Yellow Pages Business Overview & Revenue Model

Company DescriptionYellow Pages (Y) is a comprehensive directory service company that connects consumers with local businesses. Operating primarily in the digital marketing and advertising sectors, Yellow Pages offers a range of products and services, including online business listings, search optimization, and digital advertising solutions. The company serves various industries by helping businesses enhance their online presence and reach potential customers effectively.
How the Company Makes MoneyYellow Pages makes money by offering a suite of digital marketing and advertising services. Its primary revenue streams include selling online directory listings and advertising space to businesses looking to increase their visibility. Yellow Pages charges businesses for premium listings, which enhance their discoverability through better placement and additional information. The company also provides search engine marketing and optimization services, helping businesses improve their ranking on search engines, which is another significant revenue source. Additionally, Yellow Pages may earn revenue through partnerships with other digital platforms and companies that expand their advertising reach and service offerings.

Yellow Pages Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q1-2025)
|
% Change Since: 3.08%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with improvements in revenue trends and sales force expansion, alongside continued challenges in revenue decline, particularly in digital and print segments. Despite a strong cash position and dividend announcement, significant decreases in adjusted EBITDA and net income highlight ongoing financial pressures.
Q1-2025 Updates
Positive Updates
Positive Revenue Trend
For the fifth consecutive quarter, Yellow Pages reported a favorable bending of the revenue curve with the rate of change in revenue better than the previous quarter.
Strong Cash Position
Despite regular seasonal disbursements, cash stood at approximately $49 million as of April 2025.
Dividend Declaration
The Board declared a dividend of $0.25 per common share, payable on June 16, 2025.
Improvement in Revenue Decline Rate
The decline rate of revenues improved compared to the same period last year, attributed to increased new customer acquisitions and stable renewal rates.
Sales Force Expansion
Sales force headcount increased by 9 compared to the previous year, supporting revenue initiatives.
Negative Updates
Revenue Decline
Total revenues decreased by $4.2 million or 7.6% year-over-year, amounting to $50.8 million for the first quarter.
Digital Revenue Decline
Digital revenues decreased 6.8% year-over-year, attributed to a decrease in digital customer count.
Print Revenue Decline
Print revenues decreased 10.5% year-over-year, mainly due to a decrease in the number of print customers.
Adjusted EBITDA Decrease
Adjusted EBITDA decreased by $3.4 million or 22.3% to $11.9 million for the first quarter, with a margin decrease to 23.4% from 27.8% the previous year.
Net Income Decrease
Net income decreased to $5 million from $8.4 million in the previous year due to lower adjusted EBITDA and increased restructuring charges.
Company Guidance
During the Yellow Pages First Quarter 2025 Earnings Release Call, the company reported a positive shift in their revenue trajectory for the fifth consecutive quarter, with adjusted EBITDA comprising 23.4% of revenue despite ongoing investments in revenue initiatives. Total revenues for the quarter were $50.8 million, reflecting a 7.6% year-over-year decrease, an improvement from the previous quarter's 8.1% decline. Digital revenues dropped by 6.8% to $40.7 million, and print revenues decreased by 10.5% to $10.1 million, both showing betterment over prior declines. Adjusted EBITDA decreased by 22.3% to $11.9 million, with the margin dropping from 27.8% to 23.4%. Net income fell to $5 million from $8.4 million the previous year, impacted by lower adjusted EBITDA and increased restructuring charges. Notably, the sales force expanded by 9 employees, while overall workforce reduced by 6.7%. The company maintained a strong cash position of approximately $49 million and announced a dividend of $0.25 per common share, payable on June 16, 2025.

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
72
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
68
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
75
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue210.67M214.83M239.43M268.28M287.65M333.54M
Gross Profit47.42M50.84M76.86M96.57M102.00M129.44M
EBITDA45.54M50.34M75.57M93.08M85.95M119.71M
Net Income21.55M24.98M47.40M73.43M70.64M60.30M
Balance Sheet
Total Assets154.91M163.87M167.51M207.30M305.23M367.91M
Cash, Cash Equivalents and Short-Term Investments45.47M46.46M23.23M45.61M125.04M154.70M
Total Debt38.94M39.94M43.91M47.13M49.88M153.99M
Total Liabilities101.25M110.07M125.26M141.52M189.10M338.61M
Stockholders Equity53.66M53.80M42.26M65.78M116.13M29.30M
Cash Flow
Free Cash Flow34.88M36.54M42.81M44.50M99.50M121.42M
Operating Cash Flow36.85M39.02M46.77M49.50M104.58M127.00M
Investing Cash Flow206.00K-513.00K-2.50M-3.67M-4.48M-3.01M
Financing Cash Flow-17.58M-17.54M-64.94M-125.49M-130.03M-14.91M

Yellow Pages Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.32
Price Trends
50DMA
11.01
Positive
100DMA
10.65
Positive
200DMA
10.45
Positive
Market Momentum
MACD
0.09
Positive
RSI
53.34
Neutral
STOCH
51.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:Y, the sentiment is Positive. The current price of 11.32 is above the 20-day moving average (MA) of 11.28, above the 50-day MA of 11.01, and above the 200-day MA of 10.45, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 53.34 is Neutral, neither overbought nor oversold. The STOCH value of 51.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
TSY
71
Outperform
$155.75M7.1440.32%8.84%-9.07%-39.56%
58
Neutral
C$3.35B8.07-7.37%5.78%-2.71%-16.54%
54
Neutral
C$86.16M62.54-1.93%11.40%-13.80%
54
Neutral
C$86.16M62.54-1.93%11.40%-13.80%
53
Neutral
C$105.29M566.670.19%15.82%
53
Neutral
C$105.29M566.670.19%15.82%
TSGVC
47
Neutral
C$22.29M-58.96%-7.18%75.46%
TSGVC
47
Neutral
C$22.29M-58.96%-7.18%75.46%
46
Neutral
$153.51M18.33%0.15%10.95%
46
Neutral
$153.51M18.33%0.15%10.95%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:Y
Yellow Pages
11.30
2.67
30.88%
TSE:PNC.B
Postmedia Network Canada
1.46
0.24
19.26%
TSE:PNC.B
Postmedia Network Canada
1.46
0.24
19.26%
TSE:GVC
Glacier Media
0.17
0.08
88.89%
TSE:GVC
Glacier Media
0.17
0.08
88.89%
TSE:ILLM
illumin Holdings
2.02
0.48
31.17%
TSE:ILLM
illumin Holdings
2.02
0.48
31.17%
TSE:FORA
VerticalScope Holdings
4.02
-5.06
-55.73%
TSE:FORA
VerticalScope Holdings
4.02
-5.06
-55.73%

Yellow Pages Corporate Events

Business Operations and Strategy
Yellow Pages Limited De-Risks Pension Plan with Annuity Purchase
Positive
May 21, 2025

Yellow Pages Limited has announced the purchase of group annuity contracts from BMO Life Assurance Company to transfer approximately $210 million of its defined benefit pension plan obligations. This strategic move is intended to de-risk the company’s pension plan by reducing its obligations by about 50%, while ensuring pensioners continue to receive equivalent benefits. The transaction is expected to strengthen Yellow Pages’ balance sheet and allow the company to focus on revenue-enhancing activities. Despite a non-cash net settlement loss anticipated in Q2 2025, the company plans to contribute an additional $4 million to the pension plan by June 2026.

The most recent analyst rating on (TSE:Y) stock is a Hold with a C$10.00 price target. To see the full list of analyst forecasts on Yellow Pages stock, see the TSE:Y Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Yellow Pages Limited Successfully Passes All AGM Resolutions
Positive
May 14, 2025

Yellow Pages Limited announced the successful passage of all resolutions at its Annual General Meeting of Shareholders, including the election of directors and the reappointment of Deloitte LLP as auditors. This outcome reflects strong shareholder support and is likely to reinforce the company’s strategic direction and governance stability.

The most recent analyst rating on (TSE:Y) stock is a Hold with a C$10.00 price target. To see the full list of analyst forecasts on Yellow Pages stock, see the TSE:Y Stock Forecast page.

DividendsFinancial Disclosures
Yellow Pages Limited Reports Q1 2025 Results and Declares Dividend
Neutral
May 14, 2025

Yellow Pages Limited reported its financial and operating results for the first quarter of 2025, highlighting a continued trend toward revenue stability despite a 7.6% year-over-year decrease in total revenues. The company achieved an adjusted EBITDA margin of 23.4% and maintained a strong cash balance of approximately $49 million. The decline in revenues was primarily due to a decrease in digital and print customer counts, although this was partially offset by increased average spend per customer. The company also declared a dividend of $0.25 per common share, reflecting confidence in its medium- and long-term prospects.

The most recent analyst rating on (TSE:Y) stock is a Hold with a C$10.00 price target. To see the full list of analyst forecasts on Yellow Pages stock, see the TSE:Y Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Yellow Pages Announces Leadership Changes with CEO Retirement
Positive
Apr 11, 2025

Yellow Pages Limited announced the retirement of CEO David A. Eckert, effective July 15, 2025, with Sherilyn King named as his successor. Under Eckert’s leadership, the company achieved significant financial milestones, including debt repayment and shareholder returns. King’s promotion is expected to continue the company’s progress towards revenue stability. Additionally, Assunta Tortis has been appointed as Corporate Vice President of Finance, while CFO Franco Sciannamblo will also depart following a transition period.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: May 22, 2025