Yahoo Stock Analysis (NASDAQ:YHOO)
Yahoo Analysis Video
View Yahoo stock analysis video. This is our YHOO analyst opinion covering the buy and sell arguments for YHOO stock.
Yahoo! Inc. Stock Rating (2.4/5)
Our Yahoo stock opinion is based on fundamentals of the company. This Yahoo 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 YHOO stock?
- With its debt/equity ratio of 0.04, Yahoo has a lower debt burden when compared to the Computer and Technology average.
- The operating cash flow looks good at 1.6 times the net income.
- Yahoo has a healthy FCF (Free Cash Flow) margin of 14.6%.
Should you sell YHOO stock?
- Yahoo reported an average operating margin of -12.5% over the Last Twelve Months (LTM).
- Yahoo registered an average TTM Net loss of -4.1%.
- The YHOO stock currently trades at a PE of 227.1, which is expensive, compared to the industry average of 25.9.
- The company is trading at a price to sales multiple of 8.4, which is higher in comparison to the Internet Services industry average of 2.5, making YHOO stock expensive.
- The company has a negative Return on Invested Capital of -2.1%, which is a red flag.
- Yahoo has a negative ROE (Return On Equity) of -0.7%, indicating the company is not profitable.