GrubHub Stock Analysis, Valuation (NYSE:GRUB)

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$101.67 $0.07 (0.07%) GRUB stock closing price Apr 20, 2018 (Closing)
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GrubHub
Updated on : Apr 20, 2018
previous close
GRUB 101.7 (0%)
NASDAQ 7146.1 (0%)
Closing Price On: Apr 20, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Services-Delivery
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
13.1%
Sector Average:
5.7%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$46.3M
Net Income:
$53.5M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
GRUB PS :
12.9
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
7.8%
Return on Equity:
9.6%
Free Cash Flow Margin:
16.5%
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GrubHub Stock Analysis

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Take a look at Amigobulls GrubHub stock analysis video. This video puts forward our latest analysis highlighting the pros and cons for GRUB 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.

GrubHub Inc Stock Rating 3.3/5

Amigobulls GRUB stock analysis relies on business fundamentals such as GrubHub revenue growth, profits and return on equity measures from the latest quarter 2017 Q4 earnings. GrubHub valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. GrubHub stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy GRUB stock?

  • GrubHub's revenue growth came in at 49.2% in 2017 Q4.
  • The TTM operating margin was good at 13.1% for GrubHub.
  • Net margins stood at a healthy 14.5% (average) for GrubHub in the Trailing Twelve Months.
  • GrubHub's return on invested capital of 7.8% is good.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for GrubHub at 9.6%.
  • The company has a healthy free cash flow margin of 16.5%.

Should you sell GRUB stock?

  • GRUB stock is trading at a PE ratio of 102.7, which is worse than the industry average multiple of 25.2.
  • The company is trading at a price to sales multiple of 12.9, which is overvalued in comparison to the Internet Services-Delivery industry average multiple of 2.9.

Comments on this video and GrubHub stock

Amigobulls GrubHub stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of GRUB stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

GrubHub revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of GRUB technical analysis to check whether the fundamental story is reflected in the market sentiment.