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 (2.3/5)
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 a debt/equity ratio of 0.04, Yahoo is comparatively less leveraged than its peers in the Computer and Technology sector.
- The operating cash flow looks good at 1.6 times the net income.
- The company has a healthy 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%.
- YHOO stock is trading at a PE ratio of 233, which is worse than the industry average multiple of 25.8.
- The company is trading at a price to sales multiple of 8.6, which is higher in comparison to the Internet Services industry average of 2.6, making YHOO stock expensive.
- Yahoo has a negative ROIC (Return on Invested Capital) of -2.1%.
- A negative ROE of -0.7% indicates that the company is not able to generate profits with the money shareholders have invested.