Time Warner Stock Analysis (NYSE:TWX)
Time Warner Analysis Video
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 (3.6/5)
Our Time Warner stock opinion is based on fundamentals of the company. This Time Warner 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 TWX stock?
- The TTM operating margin was good at 25.4% for Time Warner.
- Net margins came in at average 15.8% for Time Warner over the last twelve months.
- The price to earnings multiple of 16.6 is attractive when compared with the industry average PE ratio of 20.1.
- Time Warner has an attractive ROIC (Return on Invested Capital) of 10.6%
- The LTM ROE of 18.8% for Time Warner is attractive.
- The company has a good Free Cash Flow (FCF) margin of 20.4%.
Should you sell TWX stock?
- Revenue declined at a CAGR of of the last 5 years.
- Time Warner has a debt/equity ratio of 1.01, which is worse than the average in the Consumer Discretionary sector.
- The company is trading at a price to sales multiple of 2.6, which is higher in comparison to the Media Conglomerates industry average of 1.5, making TWX stock expensive.