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 (3/5)
Our Sotheby's stock opinion is based on fundamentals of the company. This Sotheby's 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 BID stock?
- Sotheby's had a healthy average operating margin of 15.2% over the last 4 quarters.
- The company has an operating cash flow which is 3.9 times the net income. We see this as a positive signal.
- The company has a good Free Cash Flow (FCF) margin of 82.1%.
Should you sell BID stock?
- Revenue declined at a CAGR of -0.6% over the last 5 years.
- Sotheby's's LTM Net margins were poor at 9.2%.
- Sotheby's has a debt/equity ratio of 2.32, which is worse than the average in the Business Services sector.
- Trading at a PE ratio of 27.4, BID stock is overvalued in comparison to industry average multiple of 21.7.
- The company is trading at a price to sales multiple of 3.2, which is overvalued in comparison to the Auction Valuation services industry average multiple of 1.7.