YHOO : NASDAQ : Technology
$38.66 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 12,528,600
07/27/16 - 4:00 PM ET

Financial Analysis


YAHOO INC's gross profit margin for the second quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. YAHOO INC is extremely liquid. Currently, the Quick Ratio is 5.78 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 decreased by 15.41% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)1307.641243.27
EBITDA ($mil)25.11119.47
EBIT ($mil)-108.12-34.21
Net Income ($mil)-439.91-21.55


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)6381.095824.32
Total Assets ($mil)44214.350191.82
Total Debt ($mil)1266.281201.54
Equity ($mil)28363.8933532.6


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin52.7370.85
EBITDA Margin1.929.6
Operating Margin-8.27-2.75
Sales Turnover0.110.1
Return on Assets-11.0713.82
Return on Equity-17.2620.69
Debt Q2 FY16 Q2 FY15
Current Ratio5.955.39
Debt/Capital0.040.03
Interest Expense0.017.56
Interest Coverage0.0-1.95


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)948.25939.85
Div / share0.00.0
EPS-0.46-0.02
Book value / share29.9135.68
Institutional Own % n/a n/a
Avg Daily Volume1.1912521E71.75461E7

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.30 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 5.44. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
YHOO NM Peers 39.31   YHOO 35.45 Peers 26.21

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
YHOO 66.41 Peers 20.61   YHOO NA Peers 0.25

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
YHOO 1.30 Peers 5.44   YHOO -175.40 Peers 35.70

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
YHOO 7.53 Peers 8.94   YHOO 0.48 Peers 26.18

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

 

 

Latest Stock Upgrades/Downgrades