Yahoo Stock Analysis (NASDAQ:YHOO)

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$42.27 $0.16 (0.38%) YHOO stock closing price Jan 13, 2017 (Closing)
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Yahoo
Updated on : Jan 13, 2017
previous close
YHOO 42.3 (0%)
NASDAQ 5574.1 (0%)
Closing Price On: Jan 13, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Services
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-0.8%
Operating Profit
Operating Margin:
-105.4%
Sector Average:
4.8%
5 Quarter Net Profit
Net Margins
2016-Q3
%
LTM Margin
Debt/Equity Ratio
Debt:
1.28B
Debt/Equity Ratio:
 0.04
Compared to the industry
Cash Flow
Operating cash flow:
$217.9M
Net Income:
$162.8M
PROS      CONS
Low Debt Burden
FCF Margin
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
YHOO PS :
8.1
Industry PS :
2.4
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-20.4%
Return on Equity:
-16.1%
Free Cash Flow Margin:
13.5%
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Yahoo Analysis Video

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View Yahoo stock analysis video. This is our YHOO analyst opinion covering the buy and sell arguments for YHOO stock.

Yahoo! Inc. Stock Rating (1.7/5)

Our Yahoo stock opinion is based on fundamentals of the company. This Yahoo 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 YHOO stock?

  • Yahoo has a lower debt burden than its peers in the Computer and Technology sector, with a debt/equity ratio of  0.04.
  • Yahoo has a healthy FCF (Free Cash Flow) margin of 13.5%.

Should you sell YHOO stock?

  • Sales declined by annually over the last 5 years.
  • Yahoo registered a negative operating margin of -105.4% (average) over the Trailing Twelve Months (TTM).
  • Yahoo posted an average Net loss of -96.7% in the last twelve months.
  • Trading at a PE ratio of 1056.8, YHOO stock is overvalued in comparison to industry average multiple of 26.
  • The company is trading at a price to sales multiple of 8.1, which is higher in comparison to the Internet Services industry average of 2.4, making YHOO stock expensive.
  • Yahoo's negative ROIC of -20.4% indicates operational inefficiency.
  • A negative ROE of -16.1% indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and Yahoo stock

Matrix99 on Yahoo stock analysis ($42.94)
bearish
Sold YHOO not long ago.
1 reply
kenman31 on Yahoo stock analysis ($50.1)
bullish
Alibaba evaluation should have pushed YHOO to mid $60 range, however the high short interest on this stock should be considered as hump this stock is struggling with. The CEO Meyers of YHOO will need to come up with a plan that will inject confidence into this stock to push it over its hump to its true value.
1 reply
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vicky@amigobulls on Yahoo stock analysis ($33.41)
bullish
Alibaba's valuation as per its IPO filing is lower than estimates and Yahoo Japan has lost a third of its market cap. However, Yahoo's stock is still under-valued at $34 a share.
http://amigobulls.com/articles/yahoo-val...
1 reply
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virendra on Yahoo stock analysis ($35.59)
bullish
The recent drop in price is a good entry point for the bullish investor. With the Alibaba IPO just around the corner there is only one way the price could be headed.
http://amigobulls.com/articles/yahoo-an-...
2 2 reply
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oracleofwallstreet009 on Yahoo stock analysis ($37.56)
bullish
First Alibaba and Yahoo Japan, and now Yahoo's core business is undervalued. Is Marissa magic finally paying off at Yahoo INc? http://tinyurl.com/qj5g35z
2 1 reply
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thinkstocktalk on Yahoo stock analysis ($38.05)
bearish
With high profile management exits, I think Yahoo is slowly losing one of its 2 legs. I'm not going to bet on Alibaba alone at this stock price! http://seekingalpha.com/news/1618043-rep...
3 reply