YHOO : NASDAQ : Technology
$42.59 up 0.42 | 1.00%
Today's Range: 42.38 - 42.68
Avg. Daily Volume: 11,606,900
10/24/16 - 4:00 PM ET

Financial Analysis

YAHOO INC's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. YAHOO INC is extremely liquid. Currently, the Quick Ratio is 5.95 which clearly shows the ability to cover any short-term cash needs. YHOO managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 23.33% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)1305.211225.67
EBITDA ($mil)73.11133.81
EBIT ($mil)-42.36-18.6
Net Income ($mil)162.8376.26

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)6600.525882.05
Total Assets ($mil)54671.6341135.0
Total Debt ($mil)1283.01217.41
Equity ($mil)34836.2728245.95

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin54.167.91
EBITDA Margin5.610.91
Operating Margin-3.25-1.52
Sales Turnover0.090.12
Return on Assets-8.80.58
Return on Equity-13.810.85
Debt Q3 FY16 Q3 FY15
Current Ratio6.145.63
Interest Expense0.018.41
Interest Coverage0.0-1.01

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)950.75943.53
Div / share0.00.0
Book value / share36.6429.94
Institutional Own % n/a n/a
Avg Daily Volume1.1539008E71.1947466E7


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.15 indicates a significant discount versus the S&P 500 average of 2.73 and a significant discount versus the industry average of 5.74. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, YAHOO INC proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
YHOO NM Peers 38.85   YHOO 36.15 Peers 25.20

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

YHOO's P/E is negative making this valuation measure meaningless.


Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

YHOO is trading at a significant premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
YHOO 67.47 Peers 24.14   YHOO NA Peers 0.22

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

YHOO is trading at a significant premium to its peers.


Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
YHOO 1.15 Peers 5.74   YHOO -2136.00 Peers -2.81

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

YHOO is trading at a significant discount to its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, YHOO is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
YHOO 8.06 Peers 9.39   YHOO 0.51 Peers 28.48

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

YHOO is trading at a discount to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

YHOO significantly trails its peers on the basis of sales growth



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