Stamps.com Stock Analysis (NASDAQ:STMP)
Stamps.com Analysis Video
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.