SINA  Sina Corporation

Exchange

NASDAQ

Sector

Technology

Industry

Computer Software: Prepackaged Software

Market Cap.

5.06B

Vuru Grade

34.35/100

Current Price

$71.92
+3.00 (+4.35%)

Growth Price

$72.29
Fairly valued

Stability Price

$21.18
Overvalued by 70.55%

Company Metrics

  • P/E 23.76
  • P/S 4.98
  • P/B 1.85
  • EPS 3.03
  • Cash ROIC 6.33%
  • Cash Ratio 1.60
  • Dividend 0 / 0%
  • Avg. Vol. 1.06M
  • Shares 60.65M
  • Market Cap. 5.06B

Company Description

SINA Corporation provides online media and mobile value-added services (MVAS) in the People's Republic of China. It provides advertising, non-advertising, and free services through SINA.com, Weibo.com, and SINA Mobile. SINA.com offers free interest-based channels that provide region-focused format and content, including news, sports, automobile-related news, finance, entertainment, luxury, technol... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

SINA Corp (SINA) Q4 Earnings Match Estimates, Revenues Beat
Yahoo Finance - Feb 23, 2017
SINA Corp. (SINA) reported fourth-quarter 2016 adjusted earnings of 27 cents per share, which came in line with the Zacks Consensus Estimate but improved 28.6% from the year-ago quarter.
Why SINA Corporation Stock Plunged Today - Motley Fool
Form 6-K SINA CORP For: Feb 28 - StreetInsider.com
What Lies in Store for SINA Corp (SINA) in Q4 Earnings?
Zacks.com - Feb 21, 2017
SINA Corporation (SINA - Free Report) is expected to report fourth-quarter 2016 results on Feb 22. Last quarter, it posted a positive earnings surprise of 900.00%.
SINA Corporation Posts Another Solid Quarter
Motley Fool - Nov 22, 2016
SINA Corporation (NASDAQ:SINA) announced third-quarter 2016 results Monday after the market closed, and shares of the the Chinese online media company are up 2% in after-hours trading as of this writing.
Sina Corp's Q3 Beats Estimates (SINA, WB) - Investopedia
SINA Corp's (SINA) Q3 Earnings and Revenues Increase Y/Y - Zacks.com
Why SINA Corporation Stock Popped 25.8% in 2016
Motley Fool - Jan 7, 2017
The bulk of SINA's gains came after its stellar second-quarter report in August, which sent shares soaring 15% in a single day only to continue upward for another month.
SINA Corp. Delivers a Beat and Raise
Motley Fool - Aug 10, 2016
SINA Corporation (NASDAQ:SINA) announced strong second-quarter 2016 results Monday after the market closed. The Chinese online media company benefited as usual from its large stake in fast-growing microblogging website Weibo (NASDAQ:WB), but ...
SINA Corp (SINA) Q2 Earnings & Revenues Beat Estimates - Zacks.com
Sina's Quarterly Results Beat Projections on Weibo's Strength - Wall Street Journal
Why SINA Corporation Stock Soared Today
Motley Fool - Mar 11, 2016
That said, it can't hurt that SINA also capped 2015 with an undeniably strong fourth-quarter report last week. Quarterly revenue climbed 21.3% year over year, to $256.2 million, while adjusted net income grew 56% to $24.8 million and 45.8% on a per ...
SINA Corporation Rides Weibo, Mobile Strength to a Solid Quarter
Motley Fool - Nov 21, 2015
SINA Corporation (NASDAQ:SINA) released third-quarter 2015 results Wednesday after the market close, and the report unsurprisingly shows the Chinese web giant's continued reliance on its large stake in microblogging website Weibo (NASDAQ:WB) to ...
Company Update (NASDAQ:SINA): SINA Corp Reports Third Quarter 2015 Financial ... - Smarter Analyst
Sina Posts Higher Revenue, Driven by Weibo - Wall Street Journal
Sina Corp (SINA) Board Approves Weibo Share Distribution
StreetInsider.com - Aug 31, 2016
SINA Corporation (Nasdaq: SINA) announced that its board of directors has authorized and approved the Company's distribution of shares of Weibo Corporation (Nasdaq: WB) to the Company's shareholders on a pro rata basis.
Sina Volume Peaks on News of Weibo Share Distribution (SINA, WB) - Investopedia
Stock Update (NASDAQ:SINA): SINA Corp Announces Distribution of Weibo Shares - Smarter Analyst
Analyst Update: Activision Blizzard, Inc., NVIDIA Corporation, and SINA Corp
Schaeffers Research (blog) - Nov 22, 2016
Among specific equities in focus today are video game stock Activision Blizzard, Inc. (NASDAQ:ATVI), semiconductor stock NVIDIA Corporation (NASDAQ:NVDA), and Chinese Internet firm SINA Corp (NASDAQ:SINA). Here's a quick roundup of today's ...
Stock Update (NASDAQ:SINA): SINA Corp Reports First Quarter 2016 Financial Results
Smarter Analyst - May 12, 2016
SINA Corp. engages in the provision of online and mobile media services. It operates through the following segments: Advertising, Mobile Value-Added Services (MVAS), and Other Non-Advertising Information.
Sina Swings to Profit on Weibo Strength - Wall Street Journal
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for SINA to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate SINA's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$71.92 Current Price

$72.29 Growth Price (DCF)

Fairly valued


Growth Rate Assumed by Market: -0.32%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$21.18 Stability Price (EPV)

Overvalued by 70.55%


Discount Rate: 15.0%

$15.22 NCA Price

Overvalued by 78.84%

$142.26 Book Price

Undervalued by 97.80%


Poor Cash Return on Invested Capital over the past 5 years

SINA has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

SINA has only created $6.33 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 11.61M -20.62M -23.97M -1.83M 282.67M
divided by
Invested Capital 517.23M 542.28M 701.50M 1.14B 768.54M
Cash ROIC 2.24% -3.80% -3.42% -0.16% 36.78%

Very Poor Return on Equity over the past 5 years

SINA has shown an inability to deliver results for shareholders. This could be due to poor management, SINA operating in a highly competitive industry, or having a weak business in general.

SINA has generated a $2.64 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income -302.09M 31.86M 43.83M 161.77M 35.72M
divided by
Stockholders' Equity 1.06B 1.14B 1.19B 2.15B 2.57B
Return on Equity -28.62% 2.80% 3.68% 7.54% 1.39%

Good Business Performance over the past 10 years

It's likely SINA has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is SINA has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

SINA has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 49.01M 76.91M 95.21M 93.18M 95.70M 11.61M -20.62M -23.97M -1.83M 282.67M

Very Strong Balance Sheet

SINA has more Cash than its Total Liabilities, resulting in $6.81 Net Cash per share. In other words, if you buy SINA today, the price you're paying for shares is actually $65.11 because $6.81 of Cash is included in the current share price. This much Cash is very healthy. It can help SINA sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 362.75M 478.00M 603.82M 821.52M 882.84M 673.48M 713.60M 1.87B 2.17B 2.21B
Current Assets 418.11M 543.56M 692.43M 918.90M 1.01B 827.91M 885.35M 2.12B 2.54B 2.72B
Total Assets 538.81M 662.26M 822.49M 1.61B 1.64B 1.39B 1.48B 2.90B 3.70B 4.36B
Current Liabilities 151.00M 165.95M 193.91M 224.41M 248.02M 200.74M 227.03M 328.11M 392.66M 1.38B
Total Liabilities 151.00M 167.29M 201.99M 392.12M 396.78M 335.78M 346.24M 1.71B 1.56B 1.80B
Stockholder' Equity 387.81M 494.98M 620.51M 1.22B 1.24B 1.06B 1.14B 1.19B 2.15B 2.57B
Current Ratio 2.77 3.28 3.57 4.09 4.07 4.12 3.90 6.46 6.46 1.97
TL-to-TA 0.28 0.25 0.25 0.24 0.24 0.24 0.23 0.59 0.42 0.41

Consistent Reinvestment of Profits over the past 10 years

SINA has consistently retained profits. This may put SINA in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, SINA can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 65.97M 123.70M 204.34M 590.46M 571.37M 269.28M 301.02M 346.15M 522.95M 548.63M
Retained Earnings Growth - 87.50% 65.19% 188.96% -3.23% -52.87% 11.79% 14.99% 51.08% 4.91%

Erratic Net Profit Margins over the past 10 years

SINA has had highly erratic net profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 39.92M 57.73M 80.64M 411.90M -19.09M -302.09M 31.86M 43.83M 161.77M 35.72M
divided by
Revenue 212.85M 246.13M 369.59M 358.57M 402.62M 482.83M 529.33M 665.11M 768.24M 880.67M
Net Profit Margin 18.75% 23.45% 21.82% 114.87% -4.74% -62.57% 6.02% 6.59% 21.06% 4.06%

Strong Pricing Power over the past 10 years

SINA has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$62.05 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 133.44M 151.43M 219.25M 200.28M 234.21M 417.30M 281.40M 394.04M 477.90M 545.29M
divided by
Revenue 212.85M 246.13M 369.59M 358.57M 402.62M 482.83M 529.33M 665.11M 768.24M 880.67M
Gross Margin 62.69% 61.52% 59.32% 55.85% 58.17% 86.43% 53.16% 59.24% 62.21% 61.92%

High Capital Intensity over the past 10 years

SINA spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

82.71% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 14.09M 12.16M 18.79M 4.91M 20.89M 54.91M 53.24M 97.69M 102.85M 45.47M
divided by
Net Income 39.92M 57.73M 80.64M 411.90M -19.09M -302.09M 31.86M 43.83M 161.77M 35.72M
Capital Expenditure Ratio 35.30% 21.06% 23.30% 1.19% -109.42% -18.18% 167.12% 222.87% 63.58% 127.27%

No Dividend History over the past 10 years

SINA has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 58.55M 60.02M 60.47M 59.26M 61.22M 65.12M 66.85M 67.09M 71.57M 60.65M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 28.70 44.43 22.89 45.22 70.08 52.00 48.35 82.21 37.53 49.31
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

SINA has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 58.55M 60.02M 60.47M 59.26M 61.22M 65.12M 66.85M 67.09M 71.57M 60.65M
Stock Bought Back - -2.45% -0.75% 2.05% -3.20% -6.00% -2.58% -0.35% -6.26% 18.00%
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