YHOO  Yahoo! Inc.

Exchange

NASDAQ

Sector

Technology

Industry

EDP Services

Market Cap.

48.55B

Vuru Grade

35.54/100

Current Price

$50.67
+0.07 (+0.14%)

Growth Price

$39.17
Overvalued by 22.69%

Company Metrics

  • P/E 110.4
  • P/S 8.96
  • P/B 1.37
  • EPS -0.03
  • Cash ROIC -0.77%
  • Cash Ratio 5.30
  • Dividend 0 / N/A %
  • Avg. Vol. 7.25M
  • Shares 958.16M
  • Market Cap. 48.55B

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

Yahoo to buy back $3 billion shares in tender offer
Reuters - May 16, 2017
Yahoo Inc said on Tuesday it would buy back up to $3 billion shares through a tender offer to provide liquidity to stockholders looking to sell the stock ahead of the company's pending deal with Verizon Communications Inc. Shares in Yahoo, which has a ...
Yahoo Readies $3B Share Buyback Ahead Of Verizon Deal - Law360 (subscription)
Yahoo to buy back $3-billion shares - The Globe and Mail
Just the Facts on Yahoo! Inc. (YHOO)
StockNewsJournal - May 25, 2017
Yahoo! Inc. (YHOO) is an interesting player in the Technology space, with a focus on Internet Information Providers.
Yahoo! Inc. (YHOO) Rating Increased to Buy at Zacks Investment Research - The Cerbat Gem
What Analysts Have to Say About Yahoo! Inc (NASDAQ:YHOO)? - ExpertGazette
Tax prospects have UBS boosting price target on Yahoo
Seeking Alpha - May 24, 2017
UBS has given a boost to its price target on Yahoo (YHOO -0.7%) on the prospect of tax efficiency as the company left behind in the Verizon deal works to sort out its stake in Alibaba (BABA -0.6%).
Yahoo! Inc. (YHOO): Tax Rate & Investment Co. Discount Assumptions in Focus - Smаrt Stоck Nеws
Norinchukin Bank The Increases Position in Yahoo! Inc. (YHOO)
The Cerbat Gem - 13 hours ago
Yahoo! logo Norinchukin Bank The increased its stake in shares of Yahoo! Inc. (NASDAQ:YHOO) by 7.1% during the first quarter, according to its most recent Form 13F filing with the SEC.
Yahoo! Inc. (YHOO) Lifted to Buy at Vetr Inc. - Sports Perspectives
Yahoo! Inc. (YHOO) Position Held by Intersect Capital LLC - Chaffey Breeze
Slight Dip Encourages Vetr To Issue Buy Upgrade On Yahoo
Benzinga - May 4, 2017
The Vetr crowd on Thursday upgraded its rating for Yahoo! Inc. (NASDAQ: YHOO) from 2 stars (Sell), issued 17 days ago, to 4 stars (Buy).
Yahoo! Inc. (YHOO): What's the Story?
StockNewsJournal - May 11, 2017
Yahoo! Inc. (YHOO) is an interesting player in the Technology space, with a focus on Internet Information Providers.
Analysts' Views: Yahoo! Inc. (NASDAQ:YHOO) - ExpertGazette
Yahoo! Inc. (YHOO) Moves Higher on Volume Spike for May 09 - Equities.com
Yahoo Announces Commencement of Tender Offer to Purchase up to $3.0 Billion of ...
Business Wire (press release) - May 16, 2017
SUNNYVALE, Calif.--(BUSINESS WIRE)--Yahoo! Inc. (“Yahoo” or the “Company”) (NASDAQ: YHOO) announced today the commencement of a modified “Dutch auction” self-tender offer to purchase for cash up to $3,000,000,000 of shares of its common stock ...
Yahoo! Inc. (YHOO) Confirms the State Of Play Via Its Technicals
NY Stock News - May 25, 2017
Yahoo! Inc. (YHOO) is looking very interesting as a trading opportunity right now. The technical setup offers the best window into what traders can expect whether they are bullish on the play or bearish.
Here's Why Yahoo! Inc. (NASDAQ:YHOO) Stock Continues to Appear Undervalued
Smаrt Stоck Nеws - May 27, 2017
Yahoo! Inc. (NASDAQ:YHOO) shares have gained more than 30% year-to-date through Friday. However, few analysts continue to believe that the stock trades at a sizeable discount to their estimated asset value ahead of its upcoming deal closing.
Latest figures makes these Stock Even More Attractive: Yahoo! Inc. (YHOO ...
StockNewsJournal - May 26, 2017
Yahoo! Inc. (NASDAQ:YHOO) market capitalization at present is $47.95B at the rate of $50.60 a share. The firm's price-to-sales ratio was noted 8.91 in contrast with an overall industry average of 8.68.
What The Technical Indicators Are Saying About Yahoo! Inc. (YHOO), Noble ... - Post Analyst
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.

$50.67 Current Price

$39.17 Growth Price (DCF)

Overvalued by 22.69%


Growth Rate Assumed by Market: 24.26%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$63.79 Book Price

Undervalued by 25.89%


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 $0.77 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow -790.86M 854.62M 521.90M -2.94B 1.01B
divided by
Invested Capital 11.63B 12.06B 49.44B 38.07B 39.98B
Cash ROIC -6.80% 7.09% 1.06% -7.73% 2.52%

Poor Return on Equity over the past 5 years

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

YHOO has only generated $8.29 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 3.95B 1.38B 7.53B -4.35B -209.46M
divided by
Stockholders' Equity 14.56B 13.07B 38.74B 29.04B 31.05B
Return on Equity 27.13% 10.53% 19.44% -14.98% -0.67%

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
2007200820092010201120122013201420152016
Free Cash Flow 1.21B 1.21B 876.55M 526.11M 718.69M -790.86M 854.62M 521.90M -2.94B 1.01B

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
2007200820092010201120122013201420152016
Cash 2.00B 3.45B 3.29B 2.88B 2.06B 4.18B 3.41B 8.00B 5.86B 6.82B
Current Assets 3.24B 4.75B 4.59B 4.35B 3.45B 5.65B 5.03B 9.70B 7.51B 8.13B
Total Assets 12.23B 13.69B 14.94B 14.93B 14.78B 17.10B 16.80B 61.96B 45.20B 48.08B
Current Liabilities 2.30B 1.71B 1.72B 1.63B 1.21B 1.29B 1.34B 4.53B 1.28B 1.29B
Total Liabilities 2.70B 2.44B 2.44B 2.37B 2.24B 2.54B 3.73B 23.22B 16.16B 17.03B
Stockholder' Equity 9.53B 11.25B 12.49B 12.56B 12.54B 14.56B 13.07B 38.74B 29.04B 31.05B
Current Ratio 1.41 2.78 2.67 2.67 2.86 4.38 3.75 2.14 5.88 6.31
TL-to-TA 0.22 0.18 0.16 0.16 0.15 0.15 0.22 0.37 0.36 0.35

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
2007200820092010201120122013201420152016
Retained Earnings 4.42B 4.85B 1.60B 1.94B 2.43B 5.79B 4.27B 8.94B 4.57B 4.35B
Retained Earnings Growth - 9.59% -67.01% 21.44% 25.20% 138.15% -26.33% 109.42% -48.86% -4.74%

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
2007200820092010201120122013201420152016
Net Income 660.00M 424.30M 597.99M 1.23B 1.05B 3.95B 1.38B 7.53B -4.35B -209.46M
divided by
Revenue 6.97B 7.21B 6.46B 6.32B 4.98B 4.99B 4.68B 4.62B 4.97B 5.17B
Net Profit Margin 9.47% 5.89% 9.26% 19.47% 21.04% 79.22% 29.41% 163.10% -87.58% -4.05%

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.

$62.73 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 4.13B 4.19B 3.59B 3.70B 3.98B 3.37B 3.33B 3.32B 2.89B 2.45B
divided by
Revenue 6.97B 7.21B 6.46B 6.32B 4.98B 4.99B 4.68B 4.62B 4.97B 5.17B
Gross Margin 59.27% 58.06% 55.55% 58.46% 79.83% 67.50% 71.17% 71.89% 58.18% 47.40%

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.

62.23% 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 712.65M 674.83M 433.80M 714.08M 605.11M 509.31M 340.63M 374.81M 558.97M 241.15M
divided by
Net Income 660.00M 424.30M 597.99M 1.23B 1.05B 3.95B 1.38B 7.53B -4.35B -209.46M
Capital Expenditure Ratio 107.98% 159.05% 72.54% 57.98% 57.69% 12.89% 24.74% 4.98% -12.85% -115.13%

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
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 1.41B 1.40B 1.42B 1.36B 1.28B 1.20B 1.07B 1.00B 939.14M 949.84M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 23.45 11.97 16.98 16.76 16.13 19.50 40.20 51.22 33.37 38.67
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
2007200820092010201120122013201420152016
Shares Outstanding 1.41B 1.40B 1.42B 1.36B 1.28B 1.20B 1.07B 1.00B 939.14M 949.84M
Stock Bought Back - 0.38% -1.10% 3.74% 6.42% 6.60% 12.34% 6.64% 6.92% -1.13%
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