2U Stock Analysis, Valuation (NASDAQ:TWOU)

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$75.34 $0.94 (1.26%) TWOU stock closing price Aug 15, 2018 (Closing)

View the 2U stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for TWOU stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

2U Inc Stock Rating 2.1/5

Amigobulls TWOU stock analysis relies on business fundamentals such as 2U revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. 2U valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our 2U stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy TWOU stock?

  • 2U's revenue growth came in at 42.4% in 2018-03.
  • With a debt/equity ratio of 0.06, 2U is comparatively less leveraged than its peers in the Computer and Technology sector.

Should you sell TWOU stock?

  • Over the last twelve months, 2U posted an average operating loss margin of -13.53.
  • 2U registered an average TTM Net loss of -13%.
  • The lack of profits renders the PE ratio useless for TWOU stock.
  • The company is trading at a price to sales multiple of 11.8, which is overvalued in comparison to the Computer and Technology sector average multiple of 3.
  • -26.7's negative ROIC of -26.7 indicates operational inefficiency.
  • 2U has a negative return on equity of -13.4. This indicates that the firm is inefficient at generating profits.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -22.4.

Comments on this video and 2U stock

Investors can use Amigobulls 2U stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, 2U revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.