YHOO  Yahoo! Inc.

Exchange

NASDAQ

Sector

Technology

Industry

EDP Services

Market Cap.

43.53B

Vuru Grade

35.02/100

Current Price

$45.41
-0.57 (-1.24%)

Growth Price

$10.54
Overvalued by 76.78%

Stability Price

$3.17
Overvalued by 93.02%

Company Metrics

  • P/E 110.4
  • P/S 8.53
  • P/B 1.42
  • EPS -0.23
  • Cash ROIC -0.03%
  • Cash Ratio 4.59
  • Dividend 0 / N/A %
  • Avg. Vol. 9.05M
  • Shares 958.60M
  • Market Cap. 43.53B

Company Description

Yahoo! Inc., together with its consolidated subsidiaries, operates as a digital media company that delivers personalized digital content and experiences, across devices and worldwide. The company's communications and communities offerings provide a range of communication and social services to users and small businesses across various devices and through its broadband Internet access partners. Its... more


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

News

Verizon shaves $350 million from Yahoo price
Milwaukee Journal Sentinel - Feb 21, 2017
Yahoo Inc. CEO Marissa Mayer, already under fire on Wall Street for her inability to turn around the company and for the humiliating security lapses that came on her watch, hailed a new sale agreement with Verizon.
M&A: Verizon Communications Inc. (NYSE:VZ) And Yahoo! Inc. (NASDAQ:YHOO) Agree ... - Stock Market Daily
Why Verizon Decided to Stick With Yahoo Deal After Big Data Breaches - Wall Street Journal (subscription)
Yahoo! Inc. Shareholder Alert: Former SEC Attorney Willie Briscoe Investigates ...
Yahoo Finance - Feb 10, 2017
Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, announces that a federal class action lawsuit has been filed against Yahoo! Inc. (“Yahoo”) (YHOO) and several officers and directors ...
Shareholder Class Action Filed Against Yahoo! Inc. - YHOO
Yahoo Finance - Jan 31, 2017
31, 2017 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against Yahoo! Inc. (YHOO) ("Yahoo" or the "Company") on behalf of purchasers of the Company's securities ...
Yahoo! (YHOO) Up 3.6% Since Earnings Report: Can It Continue?
Yahoo Finance - Feb 23, 2017
It has been about a month since the last earnings report for Yahoo! Inc. YHOO. Shares have added about 3.6% in that time frame, underperforming the market.
The Yahoo! Inc. (YHOO) Shares Bought by State of Tennessee Treasury Department - DailyQuint
Traders Watch list: Yahoo! Inc. (NASDAQ:YHOO) - TopChronicle
Forward Earnings Estimate of Yahoo! Inc.(YHOO)
Highland Mirror - 23 hours ago
Yahoo! Inc.(YHOO): For the most recent quarter end, Yahoo! Inc. reported Annual Earnings of $0.18. Based on the filings, last years Annual Earnings was, $0.23.
A Look at 2 Trending Stocks: ConocoPhillips (COP), Yahoo! Inc. (YHOO) - Post Analyst
Yahoo: New Data Breach Involved Forged Cookies
Investopedia - Feb 16, 2017
Yahoo Inc. (YHOO), which has been reeling from two data breaches that impacted more than 1.5 billion customer accounts and has placed its deal with Verizon Communications Inc. (VZ) in doubt, disclosed late Wednesday yet another potential hit.
Yahoo Execs Put $4.8B Verizon Deal At Risk, Investor Says - Law360 (subscription)
Verizon-Yahoo Deal Renegotiation Results In Reduced Price - Community Financial News
Yahoo! Inc. (YHOO) Moves Higher on Volume Spike for February 15
Equities.com - Feb 15, 2017
Yahoo! Inc. (YHOO) traded on unusually high volume on Feb. 15, as the stock gained 1.4% to close at $45.65. On the day, Yahoo! Inc. saw 22.14 million shares trade hands on 143,051 trades. Considering that the stock averages only a daily volume of 7.58 ...
YHOO SHAREHOLDER ALERT: The Law Offices of Vincent Wong Reminds Investors of a ...
Business Wire (press release) - Feb 22, 2017
NEW YORK--(BUSINESS WIRE)--The Law Offices of Vincent Wong announce that a class action lawsuit has been commenced in the USDC for the Northern District of California on behalf of investors who purchased Yahoo! Inc. (NASDAQ: YHOO) securities ...
Kessler Topaz Meltzer & Check, LLP Reminds Yahoo! Inc. Shareholders of ...
Yahoo Finance - Feb 3, 2017
03, 2017 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed in the United States District Court for the Northern District of California against Yahoo! Inc. (YHOO) ...
YHOO LOSS NOTICE: Rosen Law Firm Reminds Yahoo! Inc. Investors of Important ...
Yahoo Finance - Jan 31, 2017
Rosen Law Firm, a global investor rights law firm, reminds purchasers of Yahoo! Inc. (YHOO) from November 12, 2013 through December 14, 2016, both dates inclusive (the “Class Period”) of the important March 27, 2017 lead plaintiff deadline.
CRITICAL INVESTOR ALERT: Lundin Law PC Announces Securities Class Action ... - Business Wire (press release)
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for YHOO 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 YHOO'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.

$45.41 Current Price

$10.54 Growth Price (DCF)

Overvalued by 76.78%


Growth Rate Assumed by Market: 500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


YHOO's most recent year of (normalized) free cash flow is negative. This is the base number for forward projections. This means that if you increase the growth rate, the amount of negative FCF grows, thereby decreasing the price.

Show Free Cash Flow numbers

$3.17 Stability Price (EPV)

Overvalued by 93.02%


Discount Rate: 15.0%

$68.15 Book Price

Undervalued by 50.07%


Very Poor Cash Return on Invested Capital over the past 5 years

YHOO has failed to generate positive returns on 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.

YHOO has lost $0.03 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 718.69M -790.86M 854.62M 521.90M -2.94B
divided by
Invested Capital 11.52B 11.63B 12.06B 49.44B 38.07B
Cash ROIC 6.24% -6.80% 7.09% 1.06% -7.73%

Inconsistent Return on Equity over the past 5 years

YHOO has generated adequate returns with capital that shareholders have invested. However, there has been some inconsistency from year-to-year. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

YHOO has generated $10.10 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 1.05B 3.95B 1.38B 7.53B -4.35B
divided by
Stockholders' Equity 12.54B 14.56B 13.07B 38.74B 29.04B
Return on Equity 8.36% 27.13% 10.53% 19.44% -14.98%

Good Business Performance over the past 10 years

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

YHOO 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 682.44M 1.21B 1.21B 876.55M 526.11M 718.69M -790.86M 854.62M 521.90M -2.94B

Strong Balance Sheet

YHOO is financially strong with Current Assets covering Total Liabilities. It's in a fairly liquid position and dependent on the amount and saleability of any inventory; it may have the financial security to survive an economic downturn.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 2.60B 2.00B 3.45B 3.29B 2.88B 2.06B 4.18B 3.41B 8.00B 5.86B
Current Assets 3.75B 3.24B 4.75B 4.59B 4.35B 3.45B 5.65B 5.03B 9.70B 7.51B
Total Assets 11.51B 12.23B 13.69B 14.94B 14.93B 14.78B 17.10B 16.80B 61.96B 45.20B
Current Liabilities 1.47B 2.30B 1.71B 1.72B 1.63B 1.21B 1.29B 1.34B 4.53B 1.28B
Total Liabilities 2.35B 2.70B 2.44B 2.44B 2.37B 2.24B 2.54B 3.73B 23.22B 16.16B
Stockholder' Equity 9.16B 9.53B 11.25B 12.49B 12.56B 12.54B 14.56B 13.07B 38.74B 29.04B
Current Ratio 2.54 1.41 2.78 2.67 2.67 2.86 4.38 3.75 2.14 5.88
TL-to-TA 0.20 0.22 0.18 0.16 0.16 0.15 0.15 0.22 0.37 0.36

Consistent Reinvestment of Profits over the past 10 years

YHOO has consistently retained profits. This may put YHOO 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, YHOO can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 3.72B 4.42B 4.85B 1.60B 1.94B 2.43B 5.79B 4.27B 8.94B 4.57B
Retained Earnings Growth - 19.00% 9.59% -67.01% 21.44% 25.20% 138.15% -26.33% 109.42% -48.86%

Erratic Net Profit Margins over the past 10 years

YHOO 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 751.39M 660.00M 424.30M 597.99M 1.23B 1.05B 3.95B 1.38B 7.53B -4.35B
divided by
Revenue 6.43B 6.97B 7.21B 6.46B 6.32B 4.98B 4.99B 4.68B 4.62B 4.97B
Net Profit Margin 11.69% 9.47% 5.89% 9.26% 19.47% 21.04% 79.22% 29.41% 163.10% -87.58%

Strong Pricing Power over the past 10 years

YHOO 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.

$63.83 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 3.75B 4.13B 4.19B 3.59B 3.70B 3.98B 3.37B 3.33B 3.32B 2.89B
divided by
Revenue 6.43B 6.97B 7.21B 6.46B 6.32B 4.98B 4.99B 4.68B 4.62B 4.97B
Gross Margin 58.36% 59.27% 58.06% 55.55% 58.46% 79.83% 67.50% 71.17% 71.89% 58.18%

High Capital Intensity over the past 10 years

YHOO 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.

65.51% 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 689.14M 712.65M 674.83M 433.80M 714.08M 605.11M 509.31M 340.63M 374.81M 558.97M
divided by
Net Income 751.39M 660.00M 424.30M 597.99M 1.23B 1.05B 3.95B 1.38B 7.53B -4.35B
Capital Expenditure Ratio 91.71% 107.98% 159.05% 72.54% 57.98% 57.69% 12.89% 24.74% 4.98% -12.85%

No Dividend History over the past 10 years

YHOO 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 1.46B 1.41B 1.40B 1.42B 1.36B 1.28B 1.20B 1.07B 1.00B 939.14M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 25.54 23.45 11.97 16.98 16.76 16.13 19.50 40.20 51.22 33.37
Dividend Yield - - - - - - - - - -

Strong History of Stock Buybacks over the past 10 years

YHOO has a strong 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 1.46B 1.41B 1.40B 1.42B 1.36B 1.28B 1.20B 1.07B 1.00B 939.14M
Stock Bought Back - 3.71% 0.38% -1.10% 3.74% 6.42% 6.60% 12.34% 6.64% 6.92%
Share your thoughts about YHOO

Sign Up or Log In to start contributing!


Discussion

Nothing here yet. Be the first to post!