Stamps.com Stock Analysis (NASDAQ:STMP)
Stamps.com Analysis Video
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 (4/5)
Our Stamps.com stock opinion is based on fundamentals of the company. This Stamps.com stock analysis is based on latest Q1 earnings for 2017. 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 28.3% in 2017 Q1.
- Revenue growth has been tremendous with a compounded annual growth of 29.3% over the last 5 years.
- Stamps.com's average operating margin of 34.2% was exceptional.
- LTM Net margins were good at 24.5% for Stamps.com.
- Stamps.com generates a high return on invested capital of 25%.
- Stamps.com has a good Return On Equity (ROE) of 26.9%.
- The company has a healthy free cash flow margin of 43.5%.
Should you sell STMP stock?
- The company is trading at a price to sales multiple of 6.8, which is overvalued in comparison to the Internet Commerce industry average multiple of 0.7.