Sotheby's Stock Analysis (NYSE:BID)

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$39.79 $0.2 (0.51%) BID stock closing price Jan 19, 2017 (Closing)
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Sotheby's
Updated on : Jan 19, 2017
previous close
BID 39.8 (0%)
S&P 500 2263.7 (0%)
Closing Price On: Jan 19, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Auction Valuation services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2016-Q3
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-0.8%
Operating Profit
Operating Margin:
14.4%
Sector Average:
9.6%
5 Quarter Net Profit
Net Margins
2016-Q3
%
LTM Margin
Debt/Equity Ratio
Debt:
1.15B
Debt/Equity Ratio:
 2.24
Compared to the industry
Cash Flow
Operating cash flow:
-$52.8M
Net Income:
-$54.5M
Dividend Yield
BID dividend yield:
0.25%
PROS      CONS
Operating Margins
Long Term Growth
Net Margins
High Debt Burden
ROIC
ROE
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
BID PS :
2.6
Industry PS :
1.7
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-0.4%
Return on Equity:
-0.4%
Free Cash Flow Margin:
-64%
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Sotheby's Analysis Video

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View Sotheby's stock analysis video. This is our BID analyst opinion covering the buy and sell arguments for BID stock.

Sothebys Stock Rating (2.1/5)

Our Sotheby's stock opinion is based on fundamentals of the company. This Sotheby's stock analysis is based on latest Q3 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy BID stock?

  • Sotheby's had a healthy average operating margin of 14.4% over the last 4 quarters.

Should you sell BID stock?

  • Sales declined by annually over the last 5 years.
  • Sotheby's posted an average Net loss of -0.3% in the last twelve months.
  • With a debt/equity ratio of  2.24, Sotheby's is highly leveraged in comparison to Business Services peers.
  • The company has a negative Return on Invested Capital of -0.4%, which is a red flag.
  • Sotheby's has a negative return on equity of -0.4%. This indicates that the firm is inefficient at generating profits.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -64%.

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