Time Warner Stock Analysis (NYSE:TWX)

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$96.48 $0.09 (0.09%) TWX stock closing price Feb 17, 2017 (Closing)
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Time Warner
Updated on : Feb 17, 2017
previous close
TWX 96.5 (0%)
S&P 500 2351.2 (0%)
Closing Price On: Feb 17, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Media Conglomerates
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2016-Q4
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
25.7%
Sector Average:
10.8%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
24.34B
Debt/Equity Ratio:
 1
Compared to the industry
Cash Flow
Operating cash flow:
$1.13B
Net Income:
$293M
Dividend Yield
TWX dividend yield:
1.66%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
TWX PS :
2.5
Industry PS :
1.5
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
10.9%
Return on Equity:
16.4%
Free Cash Flow Margin:
12.3%
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Time Warner Analysis Video

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View Time Warner stock analysis video. This is our TWX analyst opinion covering the buy and sell arguments for TWX stock.

Time Warner Inc Stock Rating (3.5/5)

Our Time Warner stock opinion is based on fundamentals of the company. This Time Warner 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 TWX stock?

  • The TTM operating margin was good at 25.7% for Time Warner.
  • Net margins came in at average 13.4% for Time Warner over the last twelve months.
  • The company has an operating cash flow which is 3.9 times the net income.
  • The price to earnings multiple of 16.5 is attractive when compared with the industry average PE ratio of 20.4.
  • Time Warner has an attractive ROIC (Return on Invested Capital) of 10.9%
  • The LTM ROE of 16.4% for Time Warner is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 12.3%.

Should you sell TWX stock?

  • With a debt/equity ratio of  1, Time Warner is highly leveraged in comparison to Consumer Discretionary peers.
  • The company is trading at a price to sales multiple of 2.5, which is higher in comparison to the Media Conglomerates industry average of 1.5, making TWX stock expensive.

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