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 (4.3/5)
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.