Why is Sprout Social, Inc. ?
1
Positive results in Jun 25
- OPERATING CASH FLOW(Y) Highest at USD 35.79 MM
- NET PROFIT(HY) Higher at USD -20.47 MM
- ROCE(HY) Highest at -32.5%
2
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -69.84%, its profits have risen by 24.5%
3
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -69.84% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
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.
-66.23%
-1.51
47.10%
S&P 500
13.22%
0.61
20.17%
Quality key factors
Factor
Value
Sales Growth (5y)
29.89%
EBIT Growth (5y)
1.26%
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
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
0
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
7.58
EV to EBIT
-24.30
EV to EBITDA
-31.60
EV to Capital Employed
13.41
EV to Sales
2.98
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-55.19%
ROE (Latest)
-30.01%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Bearish
Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 35.79 MM
NET PROFIT(HY)
Higher at USD -20.47 MM
ROCE(HY)
Highest at -32.5%
NET SALES(Q)
Highest at USD 111.78 MM
RAW MATERIAL COST(Y)
Fallen by -0.3% (YoY
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Sprout Social, Inc.
Net Sales
Highest at USD 111.78 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Net Profit
Higher at USD -20.47 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (USD MM)
Operating Cash Flow
Highest at USD 35.79 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Raw Material Cost
Fallen by -0.3% (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






