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 (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.