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Yext

YEXT
57
Software - Application · Technology
Price
$5.34
-0.11 (-2.02%)
Market Cap
$641.2M
Winston Score
57
Winston is curious
A decent business — some strong pillars, some weaker.

Share count rising — dilution

+1.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 127.8M (2022) → 129.9M (2026)

Yext is a software company that helps businesses manage how their information appears across the internet. When a restaurant changes its hours or a bank opens a new branch, Yext pushes that updated information — addresses, phone numbers, hours — to hundreds of websites, maps, and search engines at once. It serves businesses of all sizes, from local shops to large enterprises like hotels, retailers, and healthcare providers.

Yext charges customers a recurring subscription fee to use its platform, which gives it predictable revenue. The company operates primarily in the United States but also has customers in Europe and other markets, and its gross margin near 74% reflects the efficiency of a software business. Its main competitive advantage is its direct data partnerships with platforms like Google, Apple Maps, and Yelp, which competitors cannot easily replicate. The key risk is that large platforms could reduce their reliance on third-party data managers like Yext, shrinking its relevance over time.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-1.0% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+160.2% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$90M/ year

Rising (+16% vs prior year)

20.1% of revenue

In line with sector average (15%)

Investing heavily in future products and technology

Insider Activity

30.2%ownership

Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

$154M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

Yext is putting 20% of revenue into R&D and that number is rising. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
73.5%
Premium pricing power — 73.5% gross margin
Operating Margin
5.3%
Thin — 5.3% operating margin
ROCE
2.3%
Weak — 2.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+6.6%
Slow sales growth (6.6% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
189%
Turns 189% of profit into real cash
FCF Margin
12.0%
Converts sales into free cash efficiently (12.0%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.61
Moderate — manageable debt (0.61)
Interest Cover
4.80x
Adequate interest coverage (4.8x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
21.6x
Growth-priced — P/E 21.6

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+13.9
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (21.6 → 7.7)

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Dividends

Not applicable for this business.
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