Stamps.com Stock Analysis (NASDAQ:STMP)

Add to My Stocks
$106.15 $2.4 (2.31%) STMP stock closing price Apr 28, 2017 (Closing)
Watch Robo Advisor Video of STMP Stock Analysis
Stamps.com
Updated on : Apr 28, 2017
previous close
STMP 106.2 (0%)
S&P 500 2384.2 (0%)
Closing Price On: Apr 28, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Commerce
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
29.1%
Operating Profit
Operating Margin:
33%
Sector Average:
5.5%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$44.1M
Net Income:
$29M
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Cash Flow
ROIC
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
STMP PS :
5
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
20.7%
Return on Equity:
23.4%
Free Cash Flow Margin:
37.1%
Double Tap To Exit Full Screen
0:00
/

Stamps.com Analysis Video

346 5 2

View Stamps.com stock analysis video. This is our STMP analyst opinion covering the buy and sell arguments for STMP stock.

Stamps.com Inc. Stock Rating (4.3/5)

Our Stamps.com stock opinion is based on fundamentals of the company. This Stamps.com stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy STMP stock?

  • Stamps.com's revenue growth came in at 51.5% in 2016 Q4.
  • The company saw a significant growth in revenue with a 5 year CAGR of 29.1%.
  • Stamps.com's average operating margin of 33% was exceptional.
  • Net margins came in at average 20.6% for Stamps.com over the last twelve months.
  • The company has an operating cash flow which is 1.5 times the net income. We see this as a positive signal.
  • The Stamps.com stock currently trades at a price to earnings ratio of 14.6. We rate this as a positive, compared to the industry average of 19.9.
  • Stamps.com generates a high return on invested capital of 20.7%.
  • The LTM ROE of 23.4% for Stamps.com is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 37.1%.

Should you sell STMP stock?

  • The company is trading at a price to sales multiple of 5, which is higher in comparison to the Internet Commerce industry average of 0.7, making STMP stock expensive.

Comments on this video and Stamps.com stock