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