It hasn't been the best quarter for Yelp Inc. (NYSE:YELP) shareholders, since the share price has fallen 16% in that time. Taking a longer term view we see the stock is up over one year. In that time, it is up 28%, which isn't bad, but is below the market return of 32%.

Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Yelp was able to grow EPS by 179% in the last twelve months. It's fair to say that the share price gain of 28% did not keep pace with the EPS growth. So it seems like the market has cooled on Yelp, despite the growth. Interesting.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

It is of course excellent to see how Yelp has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at Yelp's financial health with this free report on its balance sheet.

A Different Perspective

Yelp shareholders gained a total return of 28% during the year. But that return falls short of the market. On the bright side, that's still a gain, and it's actually better than the average return of 1.8% over half a decade It is possible that returns will improve along with the business fundamentals. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 1 warning sign for Yelp that you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.