SINA  Sina Corporation

Exchange

NASDAQ

Sector

Technology

Industry

Computer Software: Prepackaged Software

Market Cap.

8.04B

Vuru Grade

48.14/100

Current Price

$112.90
+1.3291 (+1.1913%)

Growth Price

$88.90
Overvalued by 21.25%

Stability Price

$28.82
Overvalued by 74.48%

Company Metrics

  • P/E 36.9676
  • P/S 6.4828
  • P/B 2.9643
  • EPS 3.054
  • Cash ROIC 11.23%
  • Cash Ratio 1.85
  • Dividend 0 / 0%
  • Avg. Vol. 1.08M
  • Shares 71.21M
  • Market Cap. 8.04B

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

US Hedge Fund Aristeia Capital Is Seeking Seats on the Board of China's Sina Corp
Fortune - Sep 19, 2017
U.S. hedge fund Aristeia Capital LLC proposed late on Monday to add two directors to the board of Sina Corp (sina, +0.27%), to push for corporate governance change and potential divestiture to lift the share price of the Chinese social media company.
Hedge Fund Launches Proxy Fight Against China's Sina - Wall Street Journal (subscription)
Sina Investor Seeks Changes in Rare Activism at a Chinese Firm - Bloomberg
Could SINA Corp. Be a Millionaire Maker Stock?
Motley Fool - Sep 7, 2017
SINA spun off Weibo as a publicly traded company in 2014, but still retains a 46% stake in the company, which gives it a 72% voting share.
It Seems SINA Corp (SINA) Will Go Up. Just Reaches 52-Week High - Press Telegraph
Time to Get Greedy with SINA Corp. Stock
Motley Fool - May 24, 2017
Dedicated followers of that mantra would probably dismiss Chinese online media giant SINA (NASDAQ:SINA) -- which rallied 120% over the past 12 months to a six-year high -- as a "greedy" play.
Earnings Preview: What To Expect From Sina Corp On Tuesday
Forbes - May 15, 2017
Charles Chao, chairman and chief executive officer of Sina Corp., reacts during a Bloomberg Television interview on the sidelines of the China Green Companies Summit in Zhengzhou, China, on Sunday, April 23, 2017.
4 Risks SINA Corp. Bulls Need to Know
Motley Fool - Jun 12, 2017
SINA retained a major stake in Weibo -- frequently referred to as "China's Twitter" -- after it was spun off as a separate publicly traded company in 2014.
Tale of the Ticker: SINA Corp (SINA) Moves on Volume
JCTY News - 19 hours ago
Shares of SINA Corp (SINA) are moving on volatility today -4.17% or -4.82 from the open. The NASDAQ listed company saw a recent bid of 110.86 on 889558 volume.
Macquarie Group Ltd. Has $242980000 Stake in SINA Corp (SINA) - BangaloreWeekly
A Look into SINA Corp (SINA)'s Recent Activity
The Business Union - 18 hours ago
Shares of SINA Corp (SINA) are moving on volatility today -4.04% or -4.67 from the open. The NASDAQ listed company saw a recent bid of 111.01 and 744362 shares have traded hands in the session.
Following The Numbers on SINA Corp (SINA), What They Are Telling Us
Hayden Business Journal - 34 minutes ago
Investors will commonly use Williams %R in conjunction with other trend indicators to help spot possible stock turning points. SINA Corp (SINA)'s Williams Percent Range or 14 day Williams %R currently sits at -50.99. In general, if the indicator goes ...
SINA Corp (SINA) Shares Tick Down -0.56%
Stock Rover - Sep 25, 2017
Shares of SINA Corp (SINA) have been trending lower over the past five bars, revealing bearish momentum for the shares, as they ran -0.56% for the week.
SINA Files Proxy Materials
PR Newswire (press release) - 19 hours ago
BEIJING, Sept. 25, 2017 /PRNewswire/ -- SINA Corporation (the "Company" or "SINA") (NASDAQ: SINA), a leading online media company serving China and the global Chinese communities, today announced that it has filed definitive proxy materials with the ...
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.

$112.90 Current Price

$88.90 Growth Price (DCF)

Overvalued by 21.25%


Growth Rate Assumed by Market: 17.73%


Future Free Cash Flow Growth Rate: 8.4%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$28.82 Stability Price (EPV)

Overvalued by 74.48%


Discount Rate: 15.0%

$14.76 NCA Price

Overvalued by 86.93%

$104.94 Book Price

Overvalued by 7.05%


Inconsistent Cash Return on Invested Capital over the past 5 years

SINA has somewhat efficiently invested its financial resources in buildings, projects, and equipment. However, there has been some inconsistency from year-to-year. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

SINA has created $11.23 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow -20.62M -23.97M -1.83M 282.67M 405.96M
divided by
Invested Capital 542.28M 701.50M 1.14B 768.54M 1.52B
Cash ROIC -3.80% -3.42% -0.16% 36.78% 26.77%

Poor Return on Equity over the past 5 years

SINA has shown an inability to deliver strong 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 only generated $5.15 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 31.86M 43.83M 161.77M 35.72M 277.31M
divided by
Stockholders' Equity 1.14B 1.19B 2.15B 2.57B 2.68B
Return on Equity 2.80% 3.68% 7.54% 1.39% 10.35%

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
2007200820092010201120122013201420152016
Free Cash Flow 76.91M 95.21M 93.18M 95.70M 11.61M -20.62M -23.97M -1.83M 282.67M 405.96M

Very Strong Balance Sheet

SINA has more Cash than its Total Liabilities, resulting in $2.69 Net Cash per share. In other words, if you buy SINA today, the price you're paying for shares is actually $110.21 because $2.69 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
2007200820092010201120122013201420152016
Cash 478.00M 603.82M 821.52M 882.84M 673.48M 713.60M 1.87B 2.17B 2.21B 1.80B
Current Assets 543.56M 692.43M 918.90M 1.01B 827.91M 885.35M 2.12B 2.54B 2.72B 2.66B
Total Assets 662.26M 822.49M 1.61B 1.64B 1.39B 1.48B 2.90B 3.70B 4.36B 4.28B
Current Liabilities 165.95M 193.91M 224.41M 248.02M 200.74M 227.03M 328.11M 392.66M 1.38B 971.28M
Total Liabilities 167.29M 201.99M 392.12M 396.78M 335.78M 346.24M 1.71B 1.56B 1.80B 1.61B
Stockholder' Equity 494.98M 620.51M 1.22B 1.24B 1.06B 1.14B 1.19B 2.15B 2.57B 2.68B
Current Ratio 3.28 3.57 4.09 4.07 4.12 3.90 6.46 6.46 1.97 2.73
TL-to-TA 0.25 0.25 0.24 0.24 0.24 0.23 0.59 0.42 0.41 0.37

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
2007200820092010201120122013201420152016
Retained Earnings 123.70M 204.34M 590.46M 571.37M 269.28M 301.02M 346.15M 522.95M 548.63M 435.12M
Retained Earnings Growth - 65.19% 188.96% -3.23% -52.87% 11.79% 14.99% 51.08% 4.91% -20.69%

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
2007200820092010201120122013201420152016
Net Income 57.73M 80.64M 411.90M -19.09M -302.09M 31.86M 43.83M 161.77M 35.72M 277.31M
divided by
Revenue 246.13M 369.59M 358.57M 402.62M 482.83M 529.33M 665.11M 768.24M 880.67M 1.03B
Net Profit Margin 23.45% 21.82% 114.87% -4.74% -62.57% 6.02% 6.59% 21.06% 4.06% 26.90%

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.

$62.34 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
2007200820092010201120122013201420152016
Gross Profit 151.43M 219.25M 200.28M 234.21M 417.30M 281.40M 394.04M 477.90M 545.29M 676.24M
divided by
Revenue 246.13M 369.59M 358.57M 402.62M 482.83M 529.33M 665.11M 768.24M 880.67M 1.03B
Gross Margin 61.52% 59.32% 55.85% 58.17% 86.43% 53.16% 59.24% 62.21% 61.92% 65.59%

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.

80.00% 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
2007200820092010201120122013201420152016
Capital Expenditure 12.16M 18.79M 4.91M 20.89M 54.91M 53.24M 97.69M 102.85M 45.47M 37.69M
divided by
Net Income 57.73M 80.64M 411.90M -19.09M -302.09M 31.86M 43.83M 161.77M 35.72M 277.31M
Capital Expenditure Ratio 21.06% 23.30% 1.19% -109.42% -18.18% 167.12% 222.87% 63.58% 127.27% 13.59%

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
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 60.02M 60.47M 59.26M 61.22M 65.12M 66.85M 67.09M 71.57M 60.65M 77.51M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 44.43 22.89 45.22 70.08 52.00 48.35 82.21 37.53 49.31 60.79
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
2007200820092010201120122013201420152016
Shares Outstanding 60.02M 60.47M 59.26M 61.22M 65.12M 66.85M 67.09M 71.57M 60.65M 77.51M
Stock Bought Back - -0.75% 2.05% -3.20% -6.00% -2.58% -0.35% -6.26% 18.00% -21.76%
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