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?
- With a debt/equity ratio of 0.04, Yahoo is comparatively less leveraged than its peers in the Computer and Technology sector.
- 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.
- Over the last twelve months, Yahoo posted an average operating loss margin of -105.4%.
- Yahoo posted an average Net loss of -96.7% in the last twelve months.
- YHOO stock is trading at a PE ratio of 1051.3, which is worse than the industry average multiple of 25.2.
- The company is trading at a price to sales multiple of 8.1, which is overvalued in comparison to the Internet Services industry average multiple of 2.4.
- The company has a negative Return on Invested Capital of -20.4%, which is a red flag.
- A negative ROE of -16.1% indicates that the company is not able to generate profits with the money shareholders have invested.