Sotheby's Stock Analysis (NYSE:BID)

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$56.54 $0.17 (0.3%) BID stock closing price Jul 20, 2017 (Closing)
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Sotheby's
Updated on : Jul 19, 2017
previous close
BID 56.4 (0%)
S&P 500 2473.8 (0%)
Closing Price On: Jul 19, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Auction Valuation services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q1
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
1.6%
Operating Profit
Operating Margin:
16%
Sector Average:
8.6%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
1.15B
Debt/Equity Ratio:
 2.34
Compared to the industry
Cash Flow
Operating cash flow:
-$17.5M
Net Income:
-$11.3M
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
ROE
Net Margins
High Debt Burden
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
BID PS :
3.4
Industry PS :
1.7
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
8.4%
Return on Equity:
16.4%
Free Cash Flow Margin:
-11.8%
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Sotheby's Analysis Video

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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%.

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