Yeti Holdings (YETI) AI Stock Analysis

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Yeti Holdings

(NYSE:YETI)

Rating:76Outperform

Price Target:

$36.00

▲( 21.17% Upside)

Yeti Holdings demonstrates solid financial performance with robust revenue growth and profitability metrics, supported by a strong balance sheet and cash flow generation. The technical indicators suggest potential recovery, while the valuation appears fair. The recent earnings call highlighted both growth opportunities and challenges, leading to cautious guidance. Corporate events such as the appointment of new directors positively support strategic growth. Overall, YETI maintains a strong position in the leisure industry with room for improvement in overcoming short-term challenges.

Positive Factors

Innovation and Brand Extension

Yeti is leveraging its brand power to expand into new categories like insulated bowls and portable coolers, addressing concerns about brand stagnation.

International Growth

International drinkware sales grew significantly, led by Europe, highlighting a substantial growth opportunity.

Negative Factors

Competitive Pressure

Increased competition in the drinkware sector has led to a decrease in U.S. sales, heightening investor concerns.

Supply Chain Issues

Supply chain diversification efforts are creating disruptions and supply constraints, posing a headwind to sales.

Yeti Holdings (YETI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.61B

Dividend YieldN/A

Average Volume (3M)2.75M

Price to Earnings (P/E)15.1

Beta (1Y)1.10

Revenue Growth8.38%

EPS Growth3.69%

CountryUS

Employees1,340

SectorConsumer Cyclical

Sector Strength74

IndustryLeisure

Share Statistics

EPS (TTM)0.31

Shares Outstanding82,815,490

10 Day Avg. Volume3,565,899

30 Day Avg. Volume2,745,113

Financial Highlights & Ratios

PEG Ratio-1.16

Price to Book (P/B)3.19

Price to Sales (P/S)0.00

P/FCF Ratio12.56

Enterprise Value/Market Cap0.82

Enterprise Value/Revenue0.30

Enterprise Value/Gross Profit2.02

Enterprise Value/Ebitda1.86

Forecast

1Y Price Target

$35.43

Price Target Upside19.25% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering16

Yeti Holdings Business Overview & Revenue Model

Company DescriptionYeti Holdings, Inc. is a leading designer, marketer, retailer, and distributor of premium outdoor products. The company is renowned for its high-quality coolers, drinkware, backpacks, and other outdoor lifestyle products. YETI caters to a diverse customer base that includes outdoor enthusiasts, hunters, anglers, and adventurers who value durability and performance in extreme conditions.

How the Company Makes MoneyYeti Holdings primarily generates revenue through the sale of its premium outdoor products, which are distributed through a variety of retail channels including e-commerce platforms, wholesale partners, and YETI's own retail stores. The company has successfully built a strong brand reputation, allowing it to command premium pricing for its products. Key revenue streams include the sale of hard coolers, soft coolers, drinkware, and other outdoor lifestyle accessories. YETI also benefits from strategic partnerships and collaborations that expand its market reach and capitalize on brand loyalty. Additionally, the company invests in marketing initiatives and product innovations to drive sales and maintain its competitive position in the outdoor recreation industry.

Yeti Holdings Key Performance Indicators (KPIs)

Any

Revenue by Category

Revenue by Category
Analyzes revenue from different product categories, highlighting which segments are driving growth and which may need strategic focus or improvement.

Chart InsightsYETI's Coolers & Equipment segment shows robust growth, maintaining a positive trajectory with consistent double-digit increases, bolstered by strong international sales, particularly in Europe. However, the Drinkware segment faces headwinds, with a recent decline attributed to challenging U.S. market conditions and supply chain shifts. The company's strategic supply chain diversification, moving production out of China, is a double-edged sword, impacting short-term growth but promising long-term resilience. Despite tariff pressures and a cautious sales outlook, YETI's focus on innovation and international expansion underpins its confidence in future growth.

Data provided by:

Main Street Data

Yeti Holdings Financial Statement Overview

Summary

Yeti Holdings demonstrates solid financial health with consistent revenue growth and strong profitability margins. The balance sheet reflects a stable financial structure, supported by effective leverage and equity management. Cash flow statements indicate strong cash generation and efficient operational cash conversion.

Income Statement

Very Positive

Yeti Holdings shows a consistent upward trend in revenue, with a notable revenue growth rate from 2023 to 2024. Gross profit margin remains strong, indicating effective cost management. Net profit margin is healthy, reflecting good profitability. EBIT and EBITDA margins are stable, suggesting operational efficiency.

Balance Sheet

Positive

The company's debt-to-equity ratio is low, indicating prudent leverage management. A strong return on equity showcases efficient use of shareholder capital. Equity ratio has improved over the years, reflecting a stable financial position with adequate asset backing.

Cash Flow

Positive

Yeti Holdings reports positive free cash flow growth, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is strong, indicating good conversion of earnings into cash. The free cash flow to net income ratio further supports robust cash flow management.

Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
1.83B	1.66B	1.60B	1.41B	1.09B
	Gross Profit
1.06B	943.19M	763.40M	816.11M	628.80M
	EBIT
245.38M	225.46M	126.36M	274.94M	214.23M
	EBITDA
293.51M	271.89M	160.49M	303.82M	244.89M
	Net Income Common Stockholders
175.69M	169.88M	89.69M	212.60M	155.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
358.80M	438.96M	234.74M	312.19M	253.28M
	Total Assets
1.29B	1.30B	1.08B	1.10B	737.07M
	Total Debt
172.50M	176.11M	164.08M	186.41M	178.51M
	Net Debt
-186.29M	-262.85M	-70.66M	-125.78M	-74.78M
	Total Liabilities
546.01M	573.58M	550.29M	578.54M	448.65M
	Stockholders Equity
740.11M	723.61M	526.48M	517.82M	288.42M
Cash Flow		Free Cash Flow
219.55M	213.12M	43.98M	80.76M	343.48M
	Operating Cash Flow
261.39M	285.94M	100.89M	146.52M	366.43M
	Investing Cash Flow
-131.45M	-72.82M	-56.91M	-65.76M	-22.94M
	Financing Cash Flow
-209.22M	-13.60M	-122.63M	-23.02M	-163.19M

Yeti Holdings Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price29.71

Price Trends

50DMA

30.77

Positive

100DMA

34.02

Negative

200DMA

36.86

Negative

Market Momentum

MACD

0.40

Negative

RSI

55.16

Neutral

STOCH

79.40

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YETI, the sentiment is Neutral. The current price of 29.71 is above the 20-day moving average (MA) of 29.63, below the 50-day MA of 30.77, and below the 200-day MA of 36.86, indicating a neutral trend. The MACD of 0.40 indicates Negative momentum. The RSI at 55.16 is Neutral, neither overbought nor oversold. The STOCH value of 79.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for YETI.

Yeti Holdings Risk Analysis

Yeti Holdings disclosed 50 risk factors in its most recent earnings report. Yeti Holdings reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 1 New Risks

The integration and use of AI in our business presents risks and challenges that could adversely affect our business, reputation, and results of operations. Q4, 2024

Yeti Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOLF	81 Outperform	$4.23B	19.97	27.15%	1.22%	2.07%	24.87%
MAT	80 Outperform	$6.46B	12.78	25.50%	―	-0.73%	88.76%
YETI	76 Outperform	$2.61B	15.10	25.01%	―	8.38%	3.69%
PRKS	65 Neutral	$2.72B	12.92	-52.57%	―	-0.92%	0.80%
Sector *	62 Neutral	$6.97B	11.36	2.77%	3.91%	2.66%	-22.00%
JOUT	59 Neutral	$278.65M	―	-9.70%	4.87%	-7.28%	-924.86%
MODG	45 Neutral	$1.25B	―	-46.00%	―	-1.74%	-2020.38%

* Consumer Cyclical Sector Average

Performance Comparison

YETI

Yeti Holdings

29.71

-9.06

-23.37%

MODG

Topgolf Callaway Brands

6.22

-8.61

-58.06%

GOLF

Acushnet Holdings

69.19

7.59

12.32%

JOUT

Johnson Outdoors

26.13

-8.17

-23.82%

MAT

Mattel

19.32

1.44

8.05%

PRKS

United Parks & Resorts

45.32

-5.13

-10.17%

Yeti Holdings Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 6.37%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook. YETI is making significant progress in supply chain diversification and maintaining strong growth in Coolers & Equipment and international markets. However, challenges such as declining drinkware sales, tariff impacts, and supply chain disruptions are causing a cautious outlook for the year.

Q1-2025 Updates

Positive Updates

Coolers & Equipment Growth

Coolers & Equipment sales increased 17% to $140.2 million in Q1, marking the fifth consecutive quarter of double-digit growth in this segment.

International Sales Expansion

Sales outside the U.S. grew 22% to $79.9 million in the first quarter, with all regions seeing growth, especially in Europe.

Supply Chain Diversification Progress

YETI is ahead of plan in moving drinkware production out of China, expecting 90% of U.S. drinkware capacity to be ex-China by the end of 2025.

Strong Financial Position

The company ended the first quarter with $259 million in cash and inventory decreased 9% year-over-year to $330.5 million, reflecting strategic management.

New Product Innovation

YETI plans over 30 new product introductions in 2025, surpassing the 24 new launches in 2024.

Negative Updates

Drinkware Sales Decline

Drinkware sales decreased 4% to $205.6 million in Q1, impacted by challenging U.S. market conditions and supply chain diversification efforts.

Tariff Impact

The expected gross impact from tariffs in 2025 is approximately $100 million, primarily affecting products sourced from China.

Supply Chain Disruptions

YETI faces an approximately 300 basis point impact on growth for the year due to inventory supply disruptions from accelerated supply chain diversification efforts.

Operating Income Decline

Operating income decreased 11% to $35.2 million or 10% of sales, with foreign exchange impacting operating income growth by approximately 600 basis points in Q1.

Reduced Full-Year Guidance

Full year sales are now expected to increase between 1% and 4%, revised down due to supply chain disruptions and potential weaker consumer demand.

Company Guidance

During the YETI Holdings First Quarter 2025 Earnings Conference Call, the company provided guidance for the fiscal year 2025, reflecting both opportunities and challenges. YETI anticipates full-year sales growth between 1% and 4%, a reduction primarily due to the accelerated diversification of their supply chain, which is expected to affect growth by approximately 300 basis points. Gross margins are projected at around 54%, down by 450 basis points from last year, largely driven by tariffs on U.S. imports, with an estimated $100 million gross impact before mitigation efforts. Operating margins are expected to be approximately 12% of sales, reflecting a slight decline of nearly 500 basis points. Additionally, international sales are projected to grow between 15% and 20%, fueled by substantial momentum in Europe and the launch of operations in Japan. Despite current challenges, YETI remains confident in its long-term growth strategy, focusing on product innovation, supply chain transformation, and operational discipline, setting a strong foundation for 2026.

Yeti Holdings Corporate Events

Executive/Board ChangesShareholder Meetings

Yeti Holdings Elects Directors at Annual Meeting

Neutral

May 6, 2025

On May 1, 2025, YETI Holdings, Inc. conducted its 2025 Annual Meeting of Stockholders, where stockholders elected three Class I directors for a term ending in 2028. Additionally, stockholders approved the executive compensation and ratified PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending January 3, 2026.

Executive/Board ChangesBusiness Operations and Strategy

Yeti Holdings Appoints New Directors Amid Board Refresh

Positive

Mar 17, 2025

On March 14, 2025, YETI Holdings, Inc. entered into a Cooperation Agreement with Engaged Capital, LLC, leading to the appointment of J. Magnus Welander and Arne Arens to its Board of Directors, effective March 24, 2025. This move is part of YETI’s ongoing Board refreshment efforts aimed at aligning director experience with the company’s strategy and growth opportunities. The appointments, which increase the Board to 10 members, reflect YETI’s commitment to enhancing stockholder value and accelerating growth. Engaged Capital will adhere to standstill restrictions during the agreement’s term, and the cooperation is expected to support YETI’s expansion into new categories and markets, leveraging the extensive experience of the new directors.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.