Yahoo Stock Analysis (NASDAQ:YHOO)
Yahoo Analysis Video
View Yahoo stock analysis video. This is our YHOO analyst opinion covering the buy and sell arguments for YHOO stock.
Yahoo! Inc. Stock Rating (1.9/5)
Our Yahoo stock opinion is based on fundamentals of the company. This Yahoo 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 YHOO stock?
- With its debt/equity ratio of 0.04, Yahoo has a lower debt burden when compared to the Computer and Technology average.
- The operating cash flow looks good at 2.2 times the net income.
Should you sell YHOO stock?
- Long term revenue growth of 1.6% over the past 5 years has been disappointing.
- Yahoo registered a negative operating margin of -9.9% (average) over the Trailing Twelve Months (TTM).
- Yahoo posted an average Net loss of -0.3% in the last twelve months.
- The YHOO stock currently trades at a PE of 193.6, which is expensive, compared to the industry average of 26.1.
- The company is trading at a price to sales multiple of 8.6, which is overvalued in comparison to the Internet Services industry average multiple of 2.7.
- The company has a negative Return on Invested Capital of -1.6%, which is a red flag.