Stamps.com Stock Analysis (NASDAQ:STMP)

Add to My Stocks
$115.5 $1.5 (1.28%) STMP stock closing price Mar 27, 2017 (Closing)
Watch Robo Advisor Video of STMP Stock Analysis
Stamps.com
Updated on : Mar 27, 2017
previous close
STMP 115.5 (0%)
S&P 500 2341.6 (0%)
Closing Price On: Mar 27, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Commerce
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
29.1%
Operating Profit
Operating Margin:
33%
Sector Average:
7.3%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
288.4M
Debt/Equity Ratio:
 0.77
Compared to the industry
Cash Flow
Operating cash flow:
$44.1M
Net Income:
$29M
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Cash Flow
ROIC
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
STMP PS :
5.4
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
20.7%
Return on Equity:
23.4%
Free Cash Flow Margin:
37.1%
Double Tap To Exit Full Screen
0:00
/

Stamps.com Analysis Video

328 5 2

View Stamps.com stock analysis video. This is our STMP analyst opinion covering the buy and sell arguments for STMP stock.

Stamps.com Inc. Stock Rating (4.2/5)

Our Stamps.com stock opinion is based on fundamentals of the company. This Stamps.com stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy STMP stock?

  • Stamps.com sales grew by 51.5% year on year in 2016 Q4.
  • Revenue growth has been tremendous with a compounded annual growth of 29.1% over the last 5 years.
  • Stamps.com's average operating margin of 33% was exceptional.
  • Net margins came in at average 20.6% for Stamps.com over the last twelve months.
  • The company has an operating cash flow which is 1.5 times the net income. We see this as a positive signal.
  • The price to earnings multiple of 15.9 is attractive when compared with the industry average PE ratio of 18.2.
  • Stamps.com has an attractive ROIC (Return on Invested Capital) of 20.7%
  • The LTM ROE of 23.4% for Stamps.com is attractive.
  • Stamps.com has a healthy FCF (Free Cash Flow) margin of 37.1%.

Should you sell STMP stock?

  • Stamps.com is debt laden and has a high debt/equity ratio of  0.77.
  • The company is trading at a price to sales multiple of 5.4, which is overvalued in comparison to the Internet Commerce industry average multiple of 0.7.

Comments on this video and Stamps.com stock