Yahoo Stock Analysis (NASDAQ:YHOO)

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$45.71 $0.16 (0.35%) YHOO stock closing price Feb 27, 2017 (Closing)
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Yahoo
Updated on : Feb 27, 2017
previous close
YHOO 45.7 (0%)
NASDAQ 5861.9 (0%)
Closing Price On: Feb 27, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Services
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
-12.5%
Sector Average:
4.3%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Debt/Equity Ratio
Debt:
1.3B
Debt/Equity Ratio:
 0.04
Compared to the industry
Cash Flow
Operating cash flow:
$255.3M
Net Income:
$162M
PROS      CONS
Low Debt Burden
Cash Flow
FCF Margin
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
YHOO PS :
8.5
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-2.1%
Return on Equity:
-0.7%
Free Cash Flow Margin:
14.6%
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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 (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?

  • Yahoo has a lower debt burden than its peers in the Computer and Technology sector, with a debt/equity ratio of  0.04.
  • The company has an operating cash flow which is 1.6 times the net income.
  • The company has a good Free Cash Flow (FCF) margin of 14.6%.

Should you sell YHOO stock?

  • Over the last twelve months, Yahoo posted an average operating loss margin of -12.5%.
  • Over the last 12 months, Yahoo had an average Net loss of -4.1%.
  • Trading at a PE ratio of 228.6, YHOO stock is overvalued in comparison to industry average multiple of 25.7.
  • The company is trading at a price to sales multiple of 8.5, which is higher in comparison to the Internet Services industry average of 2.6, making YHOO stock expensive.
  • Yahoo's negative ROIC of -2.1% indicates operational inefficiency.
  • Yahoo has a negative ROE (Return On Equity) of -0.7%, indicating the company is not profitable.

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