Viacom Inc. [NASDAQ:VIAB]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to Viacom Inc. [VIAB], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in September. On average, stock market experts give VIAB an Hold rating. Its stock price has been found in the range of 23.31 to 34.44. This is compared to its latest closing price of $29.97.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Viacom Inc. [VIAB] is sitting at 2.56. This is compared to 1 month ago, when its average rating was 2.65.
For the quarter ending in Dec-18 Viacom Inc. [VIAB] generated $3.09 billion in sales. That’s 0.83% lower than the average estimate of $3.12 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Fri 10 May (In 24 Days).
Fundamental Analysis of Viacom Inc. [VIAB]
Now let’s turn to look at profitability: with a current Operating Margin for Viacom Inc. [VIAB] sitting at +21.59 and its Gross Margin at +45.21, this company’s Net Margin is now 11.60%. These measurements indicate that Viacom Inc. [VIAB] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 15.85, and its Return on Invested Capital has reached 12.20%. Its Return on Equity is 25.12, and its Return on Assets is 7.11. These metrics all suggest that Viacom Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Viacom Inc. [VIAB] has generated a Total Debt to Total Equity ratio of 136.11. Similarly, its Total Debt to Total Capital is 57.65, while its Total Debt to Total Assets stands at 42.39. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 128.46, and its Long-Term Debt to Total Capital is 54.41. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 6.82 and its Total Debt to EBITDA Value is 3.35. The Enterprise Value to Sales for this firm is now 1.58, and its Total Debt to Enterprise Value stands at 0.45. Viacom Inc. [VIAB] has a Price to Book Ratio of 1.84, a Price to Cash Flow Ratio of 7.47 and P/E Ratio of 8.17. These metrics all suggest that Viacom Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Viacom Inc. [VIAB] earns $1,244,519 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 4.24 and its Total Asset Turnover is 0.55. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.28 and its Current Ratio is 1.50. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Viacom Inc. [VIAB] has 404.35M shares outstanding, amounting to a total market cap of $12.30B. Its stock price has been found in the range of 23.31 to 34.44. At its current price, it has moved by -11.64% from its 52-week high, and it has moved 30.54% from its 52-week low.
This stock’s Beta value is currently 1.49, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 61.98. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Viacom Inc. [VIAB] a Reliable Buy?
Shares of Viacom Inc. [VIAB], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.