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?
- 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.