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?
- 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.
- Yahoo has a healthy FCF (Free Cash Flow) 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%.
- The YHOO stock currently trades at a PE of 227.5, which is expensive, compared to the industry average of 25.9.
- The company is trading at a price to sales multiple of 8.4, which is overvalued in comparison to the Internet Services industry average multiple of 2.6.
- Yahoo's negative ROIC of -2.1% indicates operational inefficiency.
- A negative ROE of -0.7% indicates that the company is not able to generate profits with the money shareholders have invested.