Momo Inc Stock Analysis, Valuation (NASDAQ:MOMO)

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$31.97 $0.39 (1.21%) MOMO stock closing price Feb 21, 2018 (Closing)
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Momo Inc
Updated on : Feb 21, 2018
previous close
MOMO 32 (0%)
NASDAQ 7218.2 (0%)
Closing Price On: Feb 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software-Services
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
29%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$104.6M
Net Income:
$79.1M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MOMO PS :
5.4
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
81.9%
Return on Equity:
42%
Free Cash Flow Margin:
27.3%
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Momo Inc Stock Analysis

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Investors can watch the Amigobulls Momo Inc stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons for MOMO 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.

Momo Inc (ADR) Stock Rating 4.4/5

Amigobulls MOMO stock analysis relies on business fundamentals such as Momo Inc revenue growth, profits and return on equity measures from the latest quarter 2017 Q3 earnings. We also use relative valuation metrics like PE ratio and price to sales ratio for Momo Inc valuation analysis. Momo Inc stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy MOMO stock?

  • Momo Inc sales grew by 125.7% year on year in 2017 Q3.
  • Momo Inc had a healthy average operating margin of 29% over the last 4 quarters.
  • Net margins stood at a healthy 25.9% (average) for Momo Inc in the Trailing Twelve Months.
  • Momo Inc's return on invested capital of 81.9% is good.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Momo Inc at 42%.
  • Momo Inc has a healthy FCF (Free Cash Flow) margin of 27.3%.

Should you sell MOMO stock?

  • The company is trading at a price to sales multiple of 5.4, which is overvalued in comparison to the Internet Software-Services industry average multiple of 2.8.

Comments on this video and Momo Inc stock

Amigobulls Momo Inc stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of MOMO stock. Company's fundamentals remain one of the key driver of MOMO stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, Momo Inc revenue growth and profit or net income are two main metrics which help in identifying whether MOMO 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.