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?
- The company has a good Free Cash Flow (FCF) margin of 36.2%.
Should you sell TWTR stock?
- Twitter registered a negative operating margin of -14% (average) over the Trailing Twelve Months (TTM).
- Over the last 12 months, Twitter had an average 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 company does not have profits. Hence the PE ratio is meaningless for TWTR stock.
- The company is trading at a price to sales multiple of 5.7, which is overvalued in comparison to the Internet Software industry average multiple of 2.8.
- Twitter's negative ROIC of -8.7% indicates operational inefficiency.
- Twitter has a negative ROE (Return On Equity) of -9.6%, indicating the company is not profitable.
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.