Yahoo! Inc. (NASDAQ:YHOO) May Still be Overvalued
Yahoo suitors expected to bid $2 billion to $3 billion, below past indications – WSJ .Verizon Communications and others are expected to bid around $2 billion to $3 billion in the auction for Yahoo’s core business – WSJ, citing sources.
YAHOO! INC closed down -0.930 at 36.090. Volume was 27% below average (neutral) and Bollinger Bands were 59% narrower than normal.
Open High Low Close Volume___
36.050 36.110 35.880 36.090 11,782,968
Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 37.06 36.32 33.18
Volatility: 25 27 43
Volume: 10,404,709 14,084,617 16,613,920
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
Summary
YAHOO! INC gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
YAHOO! INC is currently 8.8% above its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of YHOO.O (mildly bearish). Our trend forecasting oscillators are currently bearish on YHOO.O and have had this outlook for the last 13 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.
Here is a snapshot of how ugly things are at Yahoo!
Valuation Ratios
| Company | industry | sector | ||
|---|---|---|---|---|
| P/E Ratio (TTM) | — | 37.51 | 18.27 | |
| P/E High – Last 5 Yrs. | 31.70 | 63.10 | 30.71 | |
| P/E Low – Last 5 Yrs. | 6.07 | 23.49 | 12.26 | |
| Beta | 1.47 | 1.02 | 1.04 | |
| Price to Sales (TTM) | 7.28 | 6.78 | 11.15 | |
| Price to Book (MRQ) | 1.23 | 5.76 | 2.30 | |
| Price to Tangible Book (MRQ) | 1.28 | 10.54 | 3.16 | |
| Price to Cash Flow (TTM) | — | 28.65 | 34.13 | |
| % Owned Institutions | 79.47 | 3.41 | 0.87 | |
Dividends
| Company | industry | sector | ||
|---|---|---|---|---|
| Dividend Yield | — | 1.02 | 1.74 | |
| Dividend Yield – 5 Year Avg | — | 0.83 | 1.23 | |
| Dividend 5 Year Growth Rate | — | 23.64 | 15.65 | |
| Payout Ratio(TTM) | — | 5.20 | 18.00 | |
Growth Rates
| Company | industry | sector | ||
|---|---|---|---|---|
| Sales (MRQ) vs Qtr. 1 Yr. Ago | -11.32 | 39.60 | 7.08 | |
| Sales (TTM) vs TTM 1 Yr. Ago | 2.51 | 32.88 | 6.47 | |
| Sales – 5 Yr. Growth Rate | -4.71 | 22.77 | 7.73 | |
| EPS (MRQ) vs Qtr. 1 Yr. Ago | -569.28 | -15.67 | 367.14 | |
| EPS (TTM) vs TTM 1 Yr. Ago | -166.10 | — | — | |
| EPS – 5 Yr. Growth Rate | — | 18.63 | 7.08 | |
| Capital Spending – 5 Yr. Growth Rate | -5.34 | 26.86 | 4.95 | |
Financial Strength
| Company | industry | sector | |
|---|---|---|---|
| Quick Ratio (MRQ) | — | 0.40 | 1.77 |
| Current Ratio (MRQ) | 6.24 | 2.12 | 2.39 |
| LT Debt to Equity (MRQ) | 4.82 | 39.56 | 11.31 |
| Total Debt to Equity (MRQ) | 4.82 | 42.27 | 18.12 |
| Interest Coverage (TTM) | 4.02 | 134.26 | 29.88 |
Profitability Ratios
| Company | industry | sector | ||
|---|---|---|---|---|
| Gross Margin (TTM) | 56.11 | 52.34 | 40.50 | |
| Gross Margin – 5 Yr. Avg. | 67.27 | 70.02 | 40.90 | |
| EBITD Margin (TTM) | 8.12 | — | — | |
| EBITD – 5 Yr. Avg | 22.86 | 36.96 | 20.44 | |
| Operating Margin (TTM) | -99.98 | 27.59 | -2.22 | |
| Operating Margin – 5 Yr. Avg. | -10.93 | 31.41 | 12.51 | |
| Pre-Tax Margin (TTM) | -101.88 | 28.51 | -0.09 | |
| Pre-Tax Margin – 5 Yr. Avg. | 51.01 | 32.66 | 13.33 | |
| Net Profit Margin (TTM) | -100.16 | 20.39 | -4.12 | |
| Net Profit Margin – 5 Yr. Avg. | 25.08 | 21.49 | 9.35 | |
| Effective Tax Rate (TTM) | — | 31.49 | 27.71 | |
| Effective Tax Rate – 5 Yr. Avg. | 50.83 | 34.29 | 24.83 | |
Efficiency
| Company | industry | sector | ||
|---|---|---|---|---|
| Revenue/Employee (TTM) | 464,373 | 15,006,881 | 67,521,527 | |
| Net Income/Employee (TTM) | -465,099 | 1,251,810 | 605,186 | |
| Receivable Turnover (TTM) | 5.36 | 6.50 | 7.26 | |
| Inventory Turnover (TTM) | — | 27.70 | 45.42 | |
| Asset Turnover (TTM) | 0.10 | 0.52 | 0.88 | |
Management Effectiveness
| Company | industry | sector | ||
|---|---|---|---|---|
| Return on Assets (TTM) | -10.22 | 11.78 | 8.88 | |
| Return on Assets – 5 Yr. Avg. | 4.33 | 12.84 | 10.18 | |
| Return on Investment (TTM) | -10.51 | 17.32 | 12.02 | |
| Return on Investment – 5 Yr. Avg. | 4.66 | 17.75 | 13.81 | |
| Return on Equity (TTM) | -14.42 | 20.51 | 9.88 | |
| Return on Equity – 5 Yr. Avg. | 9.55 | 20.98 | 14.25 | |
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