Time Warner Stock Analysis (NYSE:TWX)

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$99.84 $0.16 (0.16%) TWX stock closing price Apr 21, 2017 (Closing)
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Time Warner
Updated on : Apr 21, 2017
previous close
TWX 99.8 (0%)
S&P 500 2348.7 (0%)
Closing Price On: Apr 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Media Conglomerates
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2016-Q4
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
25.7%
Sector Average:
11.9%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
24.34B
Debt/Equity Ratio:
 1
Compared to the industry
Cash Flow
Operating cash flow:
$1.15B
Net Income:
$293M
Dividend Yield
TWX dividend yield:
1.6%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
PE Valuation
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
TWX PS :
2.6
Industry PS :
1.5
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
10.9%
Return on Equity:
16.4%
Free Cash Flow Margin:
12.5%
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Time Warner Analysis Video

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View Time Warner stock analysis video. This is our TWX analyst opinion covering the buy and sell arguments for TWX stock.

Time Warner Inc Stock Rating (3.2/5)

Our Time Warner stock opinion is based on fundamentals of the company. This Time Warner 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 TWX stock?

  • Time Warner had a healthy average operating margin of 25.7% over the last 4 quarters.
  • Net margins stood at a healthy 13.4% (average) for Time Warner in the Trailing Twelve Months.
  • The company has an operating cash flow which is 3.9 times the net income.
  • The Time Warner stock currently trades at a price to earnings ratio of 17. We rate this as a positive, compared to the industry average of 21.2.
  • Time Warner has an attractive ROIC (Return on Invested Capital) of 10.9%
  • Time Warner has a good Return On Equity (ROE) of 16.4%.

Should you sell TWX stock?

  • With a debt/equity ratio of  1, Time Warner is highly leveraged in comparison to Consumer Discretionary peers.
  • The company is trading at a price to sales multiple of 2.6, which is higher in comparison to the Media Conglomerates industry average of 1.5, making TWX stock expensive.

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