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 (2.4/5)
Should you buy TWTR stock?
- Twitter has a healthy FCF (Free Cash Flow) margin of 36.2%.
Should you sell TWTR stock?
- Twitter reported an average operating margin of -14% over the Last Twelve Months (LTM).
- Twitter registered an average TTM Net loss of -17.7%.
- With a debt/equity ratio of 0.37, Twitter is highly leveraged in comparison to Computer and Technology peers.
- The lack of profits renders the PE ratio useless for TWTR stock.
- The company is trading at a price to sales multiple of 5.2, which is overvalued in comparison to the Internet Software industry average multiple of 2.7.
- The company has a negative Return on Invested Capital of -8.7%, which is a red flag.
- A negative ROE of -9.6% 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.