EarthLink Stock Analysis (NASDAQ:ELNK)

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$5.63 $0.01 (0.18%) ELNK stock closing price Feb 17, 2017 (Closing)
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EarthLink
Updated on : Feb 17, 2017
previous close
ELNK 5.6 (0%)
NASDAQ 5838.6 (0%)
Closing Price On: Feb 17, 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:
4.3%
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:
3.55%
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 :
0.6
Industry PS :
2.6
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 (2.5/5)

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?

  • ELNK stock is trading at a favorable price to sales multiple of 0.6 as against the IT Services industry average multiple of 2.6.
  • 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.
  • The company saw an average annual sales decline of in sales over the last 5 years.
  • EarthLink's LTM Net margins were poor at 0%.
  • EarthLink is debt laden and has a high debt/equity ratio of  16.64.
  • PE ratio is meaningless for ELNK stock as the company has losses.
  • The company has a negative Return on Invested Capital of -0.6%, which is a red flag.
  • A negative ROE of -0.2% indicates that the company is not able to generate profits with the money shareholders have invested.

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