EarthLink Stock Analysis (NASDAQ:ELNK)
EarthLink Analysis Video
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.