EarthLink Stock Analysis (NASDAQ:ELNK)

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$6.46 $0.26 (4.19%) ELNK stock closing price Jan 23, 2017 (Closing)
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EarthLink
Updated on : Jan 23, 2017
previous close
ELNK 6.5 (0%)
NASDAQ 5552.9 (0%)
Closing Price On: Jan 23, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
IT Services
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q3
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-2.6%
Operating Profit
Operating Margin:
4%
Sector Average:
4.8%
5 Quarter Net Profit
Net Margins
2016-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
442.5M
Debt/Equity Ratio:
 16.64
Compared to the industry
Cash Flow
Operating cash flow:
$47.5M
Net Income:
$0.2M
Dividend Yield
ELNK dividend yield:
3.1%
PROS      CONS
FCF Margin
PS Valuation
Recent Growth
Long Term Growth
Net Margins
High Debt Burden
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
ELNK PS :
0.7
Industry PS :
2.4
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-0.6%
Return on Equity:
-0.2%
Free Cash Flow Margin:
11.6%
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EarthLink Analysis Video

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View EarthLink stock analysis video. This is our ELNK analyst opinion covering the buy and sell arguments for ELNK stock.

EarthLink Holdings Corp. Stock Rating (2.4/5)

Our EarthLink stock opinion is based on fundamentals of the company. This EarthLink 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 ELNK stock?

  • When compared with the IT Services industry average PS ratio of 2.4, the price-to-sales ratio of 0.7 for ELNK stock is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 11.6%.

Should you sell ELNK stock?

  • EarthLink sales declined by -13.2% year on year in 2016 Q3.
  • Sales declined by annually over the last 5 years.
  • EarthLink's LTM Net margins were poor at 0%.
  • With a debt/equity ratio of  16.64, EarthLink is highly leveraged in comparison to Computer and Technology peers.
  • The company does not have profits. Hence the PE ratio is meaningless for ELNK stock.
  • EarthLink's negative ROIC of -0.6% indicates operational inefficiency.
  • EarthLink has a negative ROE (Return On Equity) of -0.2%, indicating the company is not profitable.

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