Entercom Communications Stock Analysis, Valuation (NYSE:ETM)
Watch the robo advisor video of Entercom Communications stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for ETM 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.
Entercom Communications Corp. Stock Rating 2.6/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for ETM stock analysis. Entercom Communications valuation forms a crucial part of our stock analysis. Entercom Communications stock rating is our opinion about the business fundamentals of the company.
Should you buy ETM stock?
- Entercom Communications's revenue growth came in at 208.4% in 2018-03.
- The company saw a significant growth in revenue with a 5 year CAGR of 15.5.
- The lower PS ratio 1.4 for ETM stock versus Consumer Discretionary sector average of 1.6 is a positive for the company.
- Entercom Communications is a dividend paying stock with a high yield of 5.73.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Entercom Communications at 24.7.
- The company has a good Free Cash Flow (FCF) margin of 20.3.
Should you sell ETM stock?
- Entercom Communications had an unimpressive average operating margin of 4.19 during the Last Twelve Months (LTM).
- Entercom Communications has a debt/equity ratio of 1.08, which is worse than the average in the -sectordesc- sector.
- Trading at a PE ratio of 60.4, ETM stock is overvalued in comparison to sector average multiple of 23.
- -18.2's negative ROIC of -18.2 indicates operational inefficiency.
Investors can use Amigobulls Entercom Communications stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.
Entercom Communications revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.