Sotheby's Stock Analysis (NYSE:BID)
Sotheby's Analysis Video
View Sotheby's stock analysis video. This is our BID analyst opinion covering the buy and sell arguments for BID stock.
Sothebys Stock Rating (2.9/5)
Our Sotheby's stock opinion is based on fundamentals of the company. This Sotheby's stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy BID stock?
- The Year Over Year (YoY) revenue growth for Sotheby's was 76% in 2017 Q1.
- Revenue growth has been tremendous with a compounded annual growth of 1.6% over the last 5 years.
- Sotheby's's average operating margin of 16% was exceptional.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Sotheby's at 16.4%.
Should you sell BID stock?
- Sotheby's's Net margins were poor at 10% in the last twelve months.
- Sotheby's has a debt/equity ratio of 2.34, which is worse than the average in the Business Services sector.
- The BID stock currently trades at a PE of 30.1, which is expensive, compared to the industry average of 22.4.
- The company is trading at a price to sales multiple of 3.4, which is higher in comparison to the Auction Valuation services industry average of 1.7, making BID stock expensive.
- Sotheby's has a negative FCF (Free Cash Flow) margin of -11.8%.