Twitter Stock Analysis, Valuation (NYSE:TWTR)

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$30.47 $0.75 (2.4%) TWTR stock closing price Apr 24, 2018 (Closing)
Watch Robo Advisor Video of TWTR Stock Analysis
Updated on : Apr 24, 2018
previous close
TWTR 30.5 (0%)
NASDAQ 7007.4 (0%)
Closing Price On: Apr 24, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
Compared to the industry
Operating Profit
Operating Margin:
Sector Average:
5 Quarter Net Profit
Net Margins
LTM Margin
Debt/Equity Ratio
Debt/Equity Ratio:
Compared to the industry
Cash Flow
Operating cash flow:
Net Income:
Cash Flow
FCF Margin
Net Margins
High Debt Burden
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
Industry PS :
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
Return on Equity:
Free Cash Flow Margin:
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Twitter Stock Analysis

14704 13 5

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.

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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.

Twitter Inc Stock Rating 2.4/5

Should you buy TWTR stock?

  • The company has an operating cash flow which is 2.2 times the net income.
  • The company has a good Free Cash Flow (FCF) margin of 21.6%.

Should you sell TWTR stock?

  • Over the last 12 months, Twitter had an average Net loss of -4.4%.
  • Twitter has a debt/equity ratio of  0.36, which is worse than the average in the Computer and Technology sector.
  • Trading at a PE ratio of 609.4, TWTR stock is overvalued in comparison to industry average multiple of 25.
  • The company is trading at a price to sales multiple of 9.3, which is higher in comparison to the Internet Software industry average of 2.8, making TWTR stock expensive.
  • Twitter has a negative return on equity of -2.3%. This indicates that the firm is inefficient at generating profits.

Comments on this video and Twitter stock

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.