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 (2.4/5)
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.