YHOO : NASDAQ : Technology
$42.80 | %
Today's Range: 42.54 - 43.76
Avg. Daily Volume: 11,750,800
09/23/16 - 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.

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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 Expense18.3317.56
Interest Coverage-5.9-1.95


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)950.75939.85
Div / share0.00.0
EPS-0.46-0.02
Book value / share29.8335.68
Institutional Own % n/a n/a
Avg Daily Volume1.1831895E71.4070109E7

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. To use another comparison, its price-to-book ratio of 1.48 indicates a discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 5.88. 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 38.68   YHOO 40.36 Peers 25.47

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 78.84 Peers 24.75   YHOO NA Peers 0.23

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 1.48 Peers 5.88   YHOO -175.40 Peers 37.03

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 8.58 Peers 9.47   YHOO 0.48 Peers 28.36

Average. 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 valuation on par with 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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