Yellow Pages (Y) AI Stock Analysis

• Market Cap: C$187.81M
• Dividend Yield: 8.77%
• Average Volume (3M): 3.58K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.31
• Revenue Growth: -7.80%
• EPS Growth: -58.83%
• Country: CA
• Employees: 565
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): 0.55
• Shares Outstanding: 13,758,660
• 10 Day Avg. Volume: 2,050
• 30 Day Avg. Volume: 3,576
• PEG Ratio: -0.30
• Price to Book (P/B): 2.90
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 4.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.34
• Revenue Forecast (FY): C$184.99M

• Rating: 67 Neutral
• Price Target: C$13.50 ▲(19.68% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid cash-flow strength but offset by persistent revenue/profit declines and higher leverage risk. Valuation is a notable positive (low P/E and high yield), while technicals are supportive but appear overextended (RSI ~81). The latest earnings commentary reinforced the core risk: ongoing top-line and EBITDA pressure despite strong cash and dividend maintenance.

Positive Factors

Free cash flow strength

Consistent and growing free cash flow (~$33.5M in 2025) with conversion near 96% of net income provides durable funding for dividends, pension contributions, debt reduction or targeted reinvestment. High FCF cushions operating volatility and strengthens long-term flexibility.

Strong liquidity and dividend

A healthy cash balance (~$59M) combined with management maintaining a $0.25 dividend reflects disciplined liquidity management and a commitment to shareholder returns. This buffer supports operations during cyclical weakness and gives optionality for restructuring or strategic moves over the medium term.

Sustainable margins

Despite revenue contraction, a ~22% EBITDA margin and positive net margin indicate structural cost control and pricing power in core services. Durable margins support cash generation, enable continued dividend payments, and provide time to execute strategic initiatives to stabilize top-line performance.

Negative Factors

Persistent revenue contraction

Revenue has declined across periods (quarterly -8.1% YoY; multi-year shrinkage noted), reducing scale and pressuring growth potential. Ongoing top-line erosion undermines long-term operating leverage, forces reliance on cost cuts, and raises execution risk for stabilizing the business model.

Rising leverage

Higher debt (≈$68M) and a debt-to-equity of ~1.3x weaken the balance sheet, limiting financial flexibility. Increased leverage elevates interest and refinancing risk, constrains capital allocation for growth or acquisitions, and magnifies pressure if cash flows deteriorate further.

Digital revenue erosion

Digital revenue—a core growth driver—fell 6.2% in the quarter, signaling competitive pressure or product-market fit issues. Sustained weakness in digital undermines future revenue recovery and customer acquisition economics, jeopardizing long-term repositioning toward higher-growth digital services.

Yellow Pages Business Overview & Revenue Model

Company Description

Yellow Pages Limited operates as a digital media and marketing solutions company in Canada. The company provides digital and traditional marketing solutions, including online and mobile priority placement on Yellow Pages digital media properties, content syndication, search engine solutions, website fulfillment, social media campaign management, digital display advertising, video production, e-commerce, and print advertising to small and medium-sized enterprises. Its online properties include YP.ca that allows users to discover and transact within their local neighborhoods through merchant profiles, editorial content, reviews, and booking functionalities; Canada411 for personal and local business information; and 411.ca, a digital directory service. The company also operates as a directory publisher for Bell, Telus, Bell Aliant, MTS Allstream, and other telephone companies; and holds the YP, Canada411, and 411 mobile applications. Yellow Pages Limited was founded in 1908 and is headquartered in Montreal, Canada.

How the Company Makes Money

Yellow Pages generates revenue through multiple streams, primarily from advertising services. Businesses pay for enhanced listings, display ads, and online marketing solutions that help them gain visibility on the Yellow Pages platform and other affiliated networks. The company may also earn revenue from partnerships with search engines and social media platforms, offering bundled advertising packages. Additionally, Yellow Pages may provide premium services such as website design and hosting, contributing further to its income. The effectiveness of its advertising solutions and the growing demand for digital marketing services are significant factors driving the company's earnings.

Yellow Pages Financial Statement Overview

Summary

Strong cash generation (2025 free cash flow ~$33.5M with high conversion vs. net income) supports resilience, but the business shows ongoing contraction with multi-year revenue and profitability decline, and rising leverage (debt-to-equity ~1.3x) reduces flexibility.

Income Statement

Profitability remains solid, with 2025 net margin around 9% and EBITDA margin ~22%, but earnings power has stepped down materially from 2022–2023 (when margins were significantly higher). The key issue is trajectory: revenue has been shrinking each year (2025 revenue down ~1.7% vs. 2024), and profits have followed that downward trend, indicating ongoing top-line pressure despite still-positive margins.

Balance Sheet

Leverage has become a more notable constraint. Total debt rose to ~$68M in 2025 while equity is ~$52M, pushing debt-to-equity to ~1.3x (weaker than 2024 and higher than most of the prior period). Assets are relatively stable, but the increasing leverage reduces balance-sheet flexibility and raises risk if operating results continue to soften.

Cash Flow

Cash generation is a clear strength: 2025 operating cash flow (~$35M) and free cash flow (~$33.5M) are strong relative to reported earnings, with free cash flow exceeding net income (about 96%+ conversion). Free cash flow also grew meaningfully in 2025 (~12%), supporting resilience; however, operating cash flow has trended down from earlier years, consistent with the broader earnings decline.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	198.88M	214.83M	239.43M	268.28M	287.65M
Gross Profit	186.56M	50.84M	76.86M	96.57M	102.00M
EBITDA	43.04M	50.34M	77.09M	95.23M	89.62M
Net Income	18.11M	24.98M	47.40M	73.43M	70.64M
Balance Sheet
Total Assets	162.59M	163.87M	167.51M	207.30M	305.23M
Cash, Cash Equivalents and Short-Term Investments	62.68M	46.46M	23.23M	45.61M	125.04M
Total Debt	68.33M	39.94M	43.91M	47.13M	49.88M
Total Liabilities	110.75M	110.07M	125.26M	141.52M	189.10M
Stockholders Equity	51.84M	53.80M	42.26M	65.78M	116.13M
Cash Flow
Free Cash Flow	33.54M	36.54M	42.81M	44.50M	99.50M
Operating Cash Flow	35.05M	39.02M	46.77M	49.50M	104.58M
Investing Cash Flow	713.00K	-513.00K	-2.50M	-3.67M	-4.48M
Financing Cash Flow	-17.28M	-17.54M	-64.94M	-125.49M	-130.03M

Yellow Pages Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 11.28 is below the 20-day moving average (MA) of 12.84, below the 50-day MA of 11.85, and above the 200-day MA of 10.97, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 80.30 is Negative, neither overbought nor oversold. The STOCH value of 89.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:Y.

Yellow Pages Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Y	67 Neutral	C$187.81M	8.29	23.61%	8.77%	-7.80%	-58.83%
ZOMD	67 Neutral	C$102.81M	10.57	81.28%	―	50.79%	213.45%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GVC	51 Neutral	C$41.31M	0.83	-47.89%	―	-3.78%	78.12%
FORA	49 Neutral	C$60.51M	-30.02	-6.82%	―	-4.04%	-297.93%
PNC.B	41 Neutral	C$94.60M	-1.22	―	―	8.98%	-55.35%

Yellow Pages Corporate Events

Yellow Pages Posts Solid Profit and Cash Despite Ongoing Revenue Declines

Yellow Pages Limited reported fourth quarter 2025 revenue of $48.0 million, down 6.5% year over year, as ongoing declines in higher‑margin digital media and print products continued to weigh on sales, though the pace of annual revenue erosion improved to 7.4% from 10.3% in 2024. Profitability remained solid, with adjusted EBITDA margins of 21.8% for the quarter and 21.6% for the year, net income rising to $7.6 million in the quarter, a strong cash balance of about $64 million at the end of January, and the board approving the final $2 million of a voluntary pension contribution and declaring a quarterly dividend of $0.25 per share, underscoring continued emphasis on balance sheet strength and shareholder returns.

The company’s cash generation stayed healthy, as adjusted EBITDA less CAPEX reached $10.1 million in the quarter and $41.5 million for 2025, despite lower full‑year revenue of $198.9 million versus $214.8 million in 2024. Management highlighted that the revenue trend benefited from improving decline rates, while the pension top‑up and sustained dividend signal confidence in financial resilience even as structural headwinds from the shrinking print and digital directory markets continue to shape Yellow Pages’ long‑term trajectory.

The most recent analyst rating on (TSE:Y) stock is a Hold with a C$11.50 price target. To see the full list of analyst forecasts on Yellow Pages stock, see the TSE:Y Stock Forecast page.