Deep Value: cash covers more than 100% of the stock price

This company holds roughly $882M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Yalla Group Limited

YALA

Software - Application · Technology

Exchange

New York Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Strong

Growth

Mixed

Cash Flow

Weak

Stability

Exceptional

Valuation

Good

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Winston Score History

The full picture

Yalla Group Limited runs a social networking and entertainment app popular in the Middle East and North Africa (MENA) region. Its main products are Yalla, a group voice chat app, and Yalla Ludo, a casual mobile game built around a popular board game. The company serves everyday consumers who want to socialize and play games online, primarily in Arabic-speaking countries.

Yalla makes money by selling virtual items and gifts that users buy inside the apps — things like digital stickers or in-game tokens. It operates almost entirely in the MENA region, which gives it a strong cultural and language advantage that Western competitors find hard to replicate. The company is profitable and carries no significant debt, which is unusual for a tech firm of its size. The main growth challenge is expanding its user base beyond its core markets, since the MENA region has a relatively limited total addressable population compared to global platforms.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

67.6%

Premium pricing power — 67.6% gross margin

Profit after running costs

Operating Margin

23.5%

Excellent — 23.5% operating margin

Return on the money invested

ROCE

12.3%

Good — 12.3% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

-3.8%

Shrinking sales (-3.8% YoY)

Profit growth

EPS YoY

-0.0%

Earnings shrinking (-0.0% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

Weak — only 0% of profit becomes cash

Spare cash per sale

FCF Margin

0.0%

Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.00

Conservative — low debt load (0.00)

Covers its interest

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

6.1x

no trend

Attractive valuation — P/E 6.1

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

-0.2

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.

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