Why is Sprout Social, Inc. ?
1
With a growth in Net Sales of 12.88%, the company declared Very Positive results in Sep 25
- The company has declared positive results for the last 2 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 36.62 MM
- NET PROFIT(HY) Higher at USD -21.37 MM
- ROCE(HY) Highest at -26.69%
2
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 -78.24%, its profits have risen by 40.8%
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 -78.24% 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.
-77.96%
-1.56
53.68%
S&P 500
13.68%
0.71
19.28%
Quality key factors
Factor
Value
Sales Growth (5y)
29.10%
EBIT Growth (5y)
4.50%
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
1.84
EV to EBIT
-7.92
EV to EBITDA
-11.25
EV to Capital Employed
2.10
EV to Sales
0.70
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-26.53%
ROE (Latest)
-20.61%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
Bearish
OBV
No Trend
Bearish
Technical Movement
13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 36.62 MM
NET PROFIT(HY)
Higher at USD -21.37 MM
ROCE(HY)
Highest at -26.69%
NET SALES(Q)
Highest at USD 115.59 MM
RAW MATERIAL COST(Y)
Fallen by -0.42% (YoY
OPERATING PROFIT MARGIN(Q)
Highest at -5 %
EPS(Q)
Highest at USD -0.16
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Sprout Social, Inc.
Operating Cash Flow
Highest at USD 36.62 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 115.59 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 -21.37 MM
than preceding 12 month period ended Sep 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (USD MM)
Operating Profit Margin
Highest at -5 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
EPS
Highest at USD -0.16
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by -0.42% (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 3.33 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Depreciation
At USD 3.33 MM has Grown at 36.75%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (USD MM)






