Terraform Power Stock Analysis, Valuation (NASDAQ:TERP)

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$11.25 $0.28 (2.55%) TERP stock closing price Aug 16, 2018 (Closing)

Take a look at Amigobulls Terraform Power stock analysis video. Our analyst opinion covering the buy and sell arguments for TERP stock is shown in the video.

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.

TerraForm Power Inc Stock Rating 2.5/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for TERP stock analysis. Terraform Power valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Based on a company's historical fundamentals we arrive at Terraform Power stock rating which is indicative of the company's financial performance.

Should you buy TERP stock?

  • The company has a healthy dividend yield of 20.62.
  • The company has a healthy free cash flow margin of 38.7.

Should you sell TERP stock?

  • Terraform Power sales declined by -15.6% year on year in 2018-03.
  • Terraform Power's TTM operating margin of 1.12 was rather poor.
  • Over the last 12 months, Terraform Power had an average Net loss of -8.3%.
  • The company has an operating cash flow which is 0.626 times the net income. This is not a healthy sign.
  • The company is trading at a price to sales multiple of 2.8, which is higher in comparison to the Utilities sector average of 2.1, making TERP stock expensive.
  • A negative ROE of -1.9 indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and Terraform Power stock

Amigobulls Terraform Power stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Company's fundamentals remain one of the key driver of TERP stock and helps investors in making good buy and sell decision.

Among the financials of the company, Terraform Power revenue growth along with the profit or net income give a clear picture of the financial health. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Terraform Power stock.