Yellow Pages (Y) AI Stock Analysis

• Market Cap: C$186.29M
• Dividend Yield: 8.77%
• Average Volume (3M): 3.58K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.30
• 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: 72 Outperform
• Price Target: C$15.00 ▲(32.98% Upside)
• Action: Upgraded Date: 03/14/26
• Date: Action: Upgraded 03/14/26

The score is driven by strong cash generation and attractive valuation (low P/E and high dividend yield). Technicals are supportive with an uptrend and positive momentum. The main constraint is financial trajectory risk: ongoing revenue/profit decline and rising leverage increase sensitivity if contraction continues.

Positive Factors

High free cash flow generation

Consistent, high free cash flow that exceeded net income and grew ~12% in 2025 provides durable financial flexibility. Strong FCF funds dividends, debt service, and reinvestment, giving the company time and resources to address top-line challenges without immediate financing stress.

Recurring SMB-focused revenue model

A recurring, contract-oriented model selling digital presence and advertising to SMBs creates predictable cash flows and customer lock-in. Owned digital properties enable cross-sell and up-sell, supporting steady revenue retention and slower churn compared with one-off services.

Sustained margin profile

Relatively healthy EBITDA and net margins give a structural buffer against revenue softness. Higher operating leverage in digital services allows margins to support positive free cash flow, enabling the business to sustain operations, dividend payments and strategic investments during recovery.

Negative Factors

Multi-year revenue and profitability decline

A persistent multi-year decline in revenue and profits erodes the core monetization base. Continued top-line contraction reduces long-term growth prospects, pressures customer acquisition economics, and risks turning temporary weakness into structural market share loss if not reversed.

Rising financial leverage

Higher leverage (debt-to-equity ~1.3x) reduces balance-sheet flexibility and increases interest obligations. If revenues continue to decline, elevated debt amplifies downside risk, constrains strategic investments, and limits the company's ability to respond to competitive or market shifts without external financing.

Operating cash flow trending down

A downward trend in operating cash flow signals weakening core cash generation despite strong FCF in the latest year. If the trend persists it could impair reinvestment capacity, dividend sustainability, and ability to service debt, making current strengths harder to maintain over months.

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 makes money primarily by selling advertising and digital marketing services to businesses. Its core revenue stream is from commercial customers (typically SMBs) that pay for placements and promotion across Yellow Pages’ owned and operated digital properties (such as online directory/listing environments) and for broader digital presence products. Revenue is generally generated through recurring or contract-based fees for services that can include enhanced business listings, search and display-style advertising on its platforms, and other managed digital marketing solutions intended to drive calls, leads, or visits for advertisers. Additional monetization can come from performance-oriented lead generation arrangements where applicable (i.e., fees tied to consumer inquiries or engagements), but specific product-level mix, pricing structure, and partner arrangements are null if not publicly detailed in the provided context.

Yellow Pages Financial Statement Overview

Summary

Cash flow is the key strength (strong operating cash flow and free cash flow, with FCF exceeding net income), supporting durability. Offsetting this, revenue and profitability have been trending down for multiple years, and leverage has increased (debt-to-equity around 1.3x), reducing flexibility if the top-line decline persists.

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: Positive
• RSI: Neutral
• 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 13.45, below the 50-day MA of 12.30, and above the 200-day MA of 11.11, indicating a bullish trend. The MACD of 0.36 indicates Positive momentum. The RSI at 66.72 is Neutral, neither overbought nor oversold. The STOCH value of 90.23 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	72 Outperform	C$186.29M	8.29	23.61%	8.77%	-7.80%	-58.83%
ZOMD	67 Neutral	C$98.78M	10.57	72.44%	―	50.79%	213.45%
FORA	61 Neutral	C$65.91M	-6.14	-10.35%	―	-4.04%	-297.93%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GVC	51 Neutral	C$40.65M	0.83	-63.79%	―	-3.78%	78.12%
PNC.B	41 Neutral	C$94.57M	-1.22	19.06%	―	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.