Yahoo Stock Analysis (NASDAQ:YHOO)

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$46.4 $0.2 (0.43%) YHOO stock closing price Mar 24, 2017 (Closing)
Watch Robo Advisor Video of YHOO Stock Analysis
Updated on : Mar 24, 2017
previous close
YHOO 46.4 (0%)
NASDAQ 5828.7 (0%)
Closing Price On: Mar 24, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Services
Sector :
Computer and Technology
5 Quarter Revenue
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Operating Margin:
Sector Average:
5 Quarter Net Profit
Net Margins
LTM Margin
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Compared to the industry
Cash Flow
Operating cash flow:
Net Income:
Low Debt Burden
Cash Flow
FCF Margin
Operating Margins
Net Margins
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
Industry PS :
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
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Free Cash Flow Margin:
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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 (2.3/5)

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?

  • 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. We see this as a positive signal.
  • The company has a good Free Cash Flow (FCF) margin of 14.6%.

Should you sell YHOO stock?

  • Yahoo registered a negative operating margin of -12.5% (average) over the Trailing Twelve Months (TTM).
  • Over the last 12 months, Yahoo had an average Net loss of -4.1%.
  • YHOO stock is trading at a PE ratio of 232, which is worse than the industry average multiple of 25.7.
  • 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.
  • The company has a negative Return on Invested Capital of -2.1%, which is a red flag.
  • Yahoo has a negative return on equity of -0.7%. This indicates that the firm is inefficient at generating profits.

Comments on this video and Yahoo stock

Matrix99 on Yahoo stock analysis ($42.94)
Sold YHOO not long ago.
1 reply
kenman31 on Yahoo stock analysis ($50.1)
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)
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.
1 reply
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virendra on Yahoo stock analysis ($35.59)
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.
2 2 reply
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oracleofwallstreet009 on Yahoo stock analysis ($37.56)
First Alibaba and Yahoo Japan, and now Yahoo's core business is undervalued. Is Marissa magic finally paying off at Yahoo INc?
2 1 reply
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thinkstocktalk on Yahoo stock analysis ($38.05)
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!
3 reply