Care.com Stock Analysis, Valuation (NYSE:CRCM)

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$16.24 $0.08 (0.49%) CRCM stock closing price Apr 20, 2018 (Closing)
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Care.com
Updated on : Apr 20, 2018
previous close
CRCM 16.2 (0%)
S&P 500 2670.1 (0%)
Closing Price On: Apr 20, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Consumer Discretionary-Misc
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
3.4%
Sector Average:
10.4%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$0.9M
Net Income:
$7.9M
PROS      CONS
ROIC
Operating Margins
Cash Flow
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CRCM PS :
2.8
Industry PS :
1.6
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
9.3%
Return on Equity:
14.1%
Free Cash Flow Margin:
1.4%
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Care.com Stock Analysis

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Take a look at Amigobulls Care.com stock analysis video. This is our analyst opinion covering the buy and sell arguments for CRCM stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Care.com Inc Stock Rating 2.5/5

Amigobulls CRCM stock analysis relies on business fundamentals such as Care.com revenue growth, profits and return on equity measures from the latest quarter 2017 Q4 earnings. Care.com valuation forms a crucial part of our stock analysis. Our Care.com stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy CRCM stock?

  • Care.com has an attractive ROIC (Return on Invested Capital) of 9.3%

Should you sell CRCM stock?

  • Care.com's TTM operating margin of 3.4% was rather poor.
  • The company has an operating cash flow which is 0.1 times the net income. This is not a healthy sign.
  • Trading at a PE ratio of 56, CRCM stock is overvalued in comparison to industry average multiple of 21.5.
  • CRCM stock is trading at a PS multiple of 2.8, which is a negative when compared to the Consumer Discretionary-Misc industry average multiple of 1.6.
  • Care.com has a low FCF (Free Cash Flow) margin of 1.4%.

Comments on this video and Care.com stock

Amigobulls Care.com stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Care.com revenue growth and profit or net income are two main metrics which help in identifying whether CRCM stock is overvalued or undervalued. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.