Twitter Stock Analysis (NYSE:TWTR)
Twitter Analysis Video
Our Twitter analysis throws up more reasons to sell than buy the stock, because it has historically underperformed on nearly every financial or fundamental parameter based on which companies are normally evaluated. We have analyzed twitter on various parameters like Twitter revenue growth, profits, and valuation based on PE (See: Twitter PE ratio chart), PS ratios, Twitter's assets and many more. Twitter stock analysis compares it with fast growing Internet industry peers, but still finds it to be expensive and risky buy right now.
Twitter Inc Stock Rating (2.3/5)
Should you buy TWTR stock?
- Twitter has a healthy FCF (Free Cash Flow) margin of 20.7%.
Should you sell TWTR stock?
- Over the last twelve months, Twitter posted an average operating loss margin of -14.5%.
- Twitter posted an average Net loss of -18.1% in the last twelve months.
- Twitter is debt laden and has a high debt/equity ratio of 0.37.
- PE ratio is meaningless for TWTR stock as the company has losses.
- The company is trading at a price to sales multiple of 4.2, which is overvalued in comparison to the Internet Software industry average multiple of 2.6.
- Twitter's negative ROIC of -9.2% indicates operational inefficiency.
- A negative ROE of -10.1% indicates that the company is not able to generate profits with the money shareholders have invested.
Twitter has been a momentum stock as can be seen from Twitter stock price history, driven more by market sentiments and expectations of future growth and buyouts, rather than financial strength. Our Twitter share analysis indicates a very risky proposition with very high price to sales ratio and non-existent price to earnings ratio, as Twitter is yet to report any net profits. Our stock analysts find twitter stock to be a very risky proposition.