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?
- 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.