Sprout Social, Inc. (SPT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Sprout Social, Inc.

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Why is Sprout Social, Inc. ?

With a growth in Net Sales of 10.8%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 7 consecutive quarters
OPERATING CASH FLOW(Y) Highest at USD 54.41 MM
ROCE(HY) Highest at -14.3%
NET SALES(Q) Highest at USD 123.85 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -25.92%, its profits have risen by 29.6%

Rising Promoter Confidence

Promoters have increased their stake in the company by 0.65% over the previous quarter and currently hold 0.65% of the company
Promoters increasing their stake is a sign of high confidence in the future of the business

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -25.92% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sprout Social, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Sprout Social, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sprout Social, Inc.

-25.92%

-1.05

67.57%

S&P 500

21.26%

1.62

13.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.04%

EBIT Growth (5y)

-6.16%

EBIT to Interest (avg)

-29.72

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.47

Sales to Capital Employed (avg)

1.88

Tax Ratio

1.76%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.70

EV to EBIT

-7.16

EV to EBITDA

-10.27

EV to Capital Employed

1.96

EV to Sales

0.64

PEG Ratio

Dividend Yield

ROCE (Latest)

-27.35%

ROE (Latest)

-19.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 54.41 MM

ROCE(HY)

Highest at -14.3%

NET SALES(Q)

Highest at USD 123.85 MM

RAW MATERIAL COST(Y)

Fallen by 0.13% (YoY

OPERATING PROFIT(Q)

Highest at USD 2.25 MM

OPERATING PROFIT MARGIN(Q)

Highest at 1.82 %

PRE-TAX PROFIT(Q)

Highest at USD -1.56 MM

NET PROFIT(Q)

Highest at USD -1.92 MM

EPS(Q)

Highest at USD -0.05

-4What is not working for the Company

INTEREST(HY)

At USD 1.29 MM has Grown at 39.22%

Here's what is working for Sprout Social, Inc.

Operating Cash Flow

Highest at USD 54.41 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 123.85 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Operating Profit

Highest at USD 2.25 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 1.82 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD -1.56 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD -1.56 MM has Grown at 86.31%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD -1.92 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD -1.92 MM has Grown at 84%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD -0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by 0.13% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 3.75 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Sprout Social, Inc.

Interest

At USD 1.29 MM has Grown at 39.22%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)