SOHUSohu.com Limited
Is the business good?
The checks split: nothing decisive, though elite returns on assets.
Margins have held roughly steady, a stable cost structure.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 31% = margin × turnover × leverage.
All from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SOHU?
Sohu.com Limited earns −17% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 26 points below what the capital costs: growth destroys value
- Operating margin
- −16%
Operating margin · Electronic Gaming & Multimedia median −2.9% · fiscal year to FY2025
- Share count, year on year
- −12%
Share count, year on year · bought back, each share owns more of the company
- R&D as % of revenue
- 42%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 9.8% |
| FY2021 | 12% |
| FY2022 | −0.12% |
| FY2023 | −15% |
| FY2024 | −18% |
| FY2025 | −16% |
Details›
- Gross marginfiscal year to FY2025
- 78%
- Operating marginfiscal year to FY2025
- −16%
- Net marginfiscal year to FY2025
- 67%
- Free cash flow margin
- −0.91%
- R&D as % of revenue
- 42%
- Revenue, trailing twelve months
- $584M
- Free cash flow, trailing twelve months
- −$5.3M
- Net income, trailing twelve months
- $394M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −17%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Communication Services
Ranks #109 of 124 by RyuScore