Stamps.com Stock Analysis (NASDAQ:STMP)

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$156.2 $4.3 (2.83%) STMP stock closing price Jul 26, 2017 (Closing)
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Stamps.com
Updated on : Jul 26, 2017
previous close
STMP 156.2 (0%)
S&P 500 2477.8 (0%)
Closing Price On: Jul 26, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Commerce
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2017-Q1
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
29.3%
Operating Profit
Operating Margin:
34.2%
Sector Average:
5.7%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$48.8M
Net Income:
$33.1M
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
STMP PS :
6.8
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
25%
Return on Equity:
26.9%
Free Cash Flow Margin:
43.5%
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Stamps.com Analysis Video

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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.

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