About Yalla Group Ltd
Yalla Group Limited operates a voice-centric social networking and entertainment platform under the Yalla name primarily in the Middle East and North Africa region. Its platform offers group chatting and games services; and sells virtual items, as well as provides upgrade services.
The company was formerly known as FYXTech Corporation. Yalla Group Limited was founded in 2016 and is headquartered in Dubai, the United Arab Emirates.
YALA operates in the Services | Computer Software | approximately 630 employees | led by CEO Tao Yang.
$644 million 4.7x P/E 0.9x P/B 3.7x EV/EBITDA 21.3% ROE 6.5% rev. growth
Yalla Group Ltd earns a Buy rating from our quantitative model with a composite score of 74/100, ranking #29 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 99/100, which places YALA in the top 1 percent of all stocks on this measure. quality at 89/100 provides secondary support. Investors should note that investment efficiency scores a below-average 36/100, which tempers the overall profile.
Within the Services sector, YALA ranks 2nd out of 50 peers, placing it in the 96th percentile. At $644 million, the company is a small-cap stock with higher potential but also higher risk.
Quality Analysis
Yalla Group Ltd's quality score of 89/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 21.3% exceeds the sector median of 6.0%. Gross margins of 64.5% reflect strong pricing power and competitive moats. Operating margins of 35.7% sit above the 5.0% sector average.
Net margins of 39.5% demonstrate that the company efficiently converts revenue into bottom-line profit.
Valuation Assessment
A value score of 99/100 puts YALA in the top 1 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 4.7x, an EV/EBITDA of 3.7x, a price-to-book of 0.9x, a price-to-sales of 1.9x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
A momentum score of 74/100 shows YALA is trending above average, with its stock price outperforming the majority of the market. This is not explosive, meme-stock-style momentum — it is the gradual, fundamental-driven kind that tends to persist.
Revenue growth of 6.5% provides a moderate fundamental underpinning. A beta of 1.23 means Yalla Group Ltd moves more aggressively than the market, amplifying both gains and losses.
Our entry timing model currently signals Neutral, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Small-cap illiquidity. At $644 million, YALA has lower trading volume and wider bid-ask spreads than large-cap peers. This can amplify short-term price volatility and make it harder for larger investors to build or exit positions without moving the stock.
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support Yalla Group Ltd's rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
Yalla Group Ltd earns a Buy rating with a composite score of 74/100 and 4 out of 5 stars, ranking #29 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position YALA above the majority of the market.
Explore the full YALA analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
