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SPROUT SOCIAL INC - CLASS A (SPT) Stock Fundamental Analysis

NASDAQ:SPT - Nasdaq - US85209W1099 - Common Stock - Currency: USD

28.41  -0.55 (-1.9%)

After market: 28.41 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to SPT. SPT was compared to 283 industry peers in the Software industry. SPT may be in some trouble as it scores bad on both profitability and health. SPT shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year SPT was profitable.
SPT had a positive operating cash flow in the past year.
In the past 5 years SPT always reported negative net income.
In multiple years SPT reported negative operating cash flow during the last 5 years.
SPT Yearly Net Income VS EBIT VS OCF VS FCFSPT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 0 -20M -40M -60M

1.2 Ratios

SPT's Return On Assets of -17.39% is on the low side compared to the rest of the industry. SPT is outperformed by 69.20% of its industry peers.
SPT's Return On Equity of -42.78% is on the low side compared to the rest of the industry. SPT is outperformed by 68.48% of its industry peers.
Industry RankSector Rank
ROA -17.39%
ROE -42.78%
ROIC N/A
ROA(3y)-14.89%
ROA(5y)-16.52%
ROE(3y)-33.7%
ROE(5y)-31.7%
ROIC(3y)N/A
ROIC(5y)N/A
SPT Yearly ROA, ROE, ROICSPT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 -100 -200 -300

1.3 Margins

SPT has a Gross Margin of 77.31%. This is in the better half of the industry: SPT outperforms 72.46% of its industry peers.
SPT's Gross Margin has been stable in the last couple of years.
SPT does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 77.31%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.51%
GM growth 5Y1.01%
SPT Yearly Profit, Operating, Gross MarginsSPT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 60

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3

2. Health

2.1 Basic Checks

SPT does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, SPT has more shares outstanding
SPT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SPT has a worse debt to assets ratio.
SPT Yearly Shares OutstandingSPT Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M
SPT Yearly Total Debt VS Total AssetsSPT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

2.2 Solvency

SPT has an Altman-Z score of 3.45. This indicates that SPT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SPT (3.45) is comparable to the rest of the industry.
The Debt to FCF ratio of SPT is 1.78, which is an excellent value as it means it would take SPT, only 1.78 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SPT (1.78) is better than 67.03% of its industry peers.
SPT has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
SPT has a Debt to Equity ratio (0.19) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 1.78
Altman-Z 3.45
ROIC/WACCN/A
WACC13.96%
SPT Yearly LT Debt VS Equity VS FCFSPT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 0 50M 100M 150M

2.3 Liquidity

A Current Ratio of 0.96 indicates that SPT may have some problems paying its short term obligations.
The Current ratio of SPT (0.96) is worse than 77.17% of its industry peers.
A Quick Ratio of 0.96 indicates that SPT may have some problems paying its short term obligations.
SPT's Quick ratio of 0.96 is on the low side compared to the rest of the industry. SPT is outperformed by 76.81% of its industry peers.
Industry RankSector Rank
Current Ratio 0.96
Quick Ratio 0.96
SPT Yearly Current Assets VS Current LiabilitesSPT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M

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7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 126.67% over the past year.
SPT shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.70%.
The Revenue has been growing by 33.46% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)126.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1400%
Revenue 1Y (TTM)26.7%
Revenue growth 3Y35.91%
Revenue growth 5Y33.46%
Sales Q2Q%20%

3.2 Future

SPT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 57.42% yearly.
Based on estimates for the next years, SPT will show a quite strong growth in Revenue. The Revenue will grow by 17.23% on average per year.
EPS Next Y236.68%
EPS Next 2Y123.07%
EPS Next 3Y90%
EPS Next 5Y57.42%
Revenue Next Year22.59%
Revenue Next 2Y18.49%
Revenue Next 3Y17.47%
Revenue Next 5Y17.23%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
SPT Yearly Revenue VS EstimatesSPT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 200M 400M 600M 800M
SPT Yearly EPS VS EstimatesSPT Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 0.5 -0.5 1 -1 1.5

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 83.56, which means the current valuation is very expensive for SPT.
The rest of the industry has a similar Price/Earnings ratio as SPT.
SPT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.62.
The Price/Forward Earnings ratio is 40.78, which means the current valuation is very expensive for SPT.
Based on the Price/Forward Earnings ratio, SPT is valued a bit cheaper than 61.23% of the companies in the same industry.
SPT is valuated expensively when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 83.56
Fwd PE 40.78
SPT Price Earnings VS Forward Price EarningsSPT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPT is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 96.61
EV/EBITDA N/A
SPT Per share dataSPT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

SPT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SPT's earnings are expected to grow with 90.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y123.07%
EPS Next 3Y90%

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0

5. Dividend

5.1 Amount

No dividends for SPT!.
Industry RankSector Rank
Dividend Yield N/A

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SPROUT SOCIAL INC - CLASS A

NASDAQ:SPT (2/21/2025, 8:00:02 PM)

After market: 28.41 0 (0%)

28.41

-0.55 (-1.9%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)02-25 2025-02-25/amc
Inst Owners103.22%
Inst Owner Change-92.64%
Ins Owners1.57%
Ins Owner Change-0.2%
Market Cap1.63B
Analysts74.44
Price Target38.21 (34.49%)
Short Float %9.41%
Short Ratio8.43
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.56%
Min EPS beat(2)7.71%
Max EPS beat(2)13.41%
EPS beat(4)4
Avg EPS beat(4)566.83%
Min EPS beat(4)7.71%
Max EPS beat(4)1736.92%
EPS beat(8)8
Avg EPS beat(8)503.87%
EPS beat(12)12
Avg EPS beat(12)347.46%
EPS beat(16)16
Avg EPS beat(16)276.69%
Revenue beat(2)0
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-0.37%
Max Revenue beat(2)-0.27%
Revenue beat(4)1
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-1.52%
Max Revenue beat(4)2.12%
Revenue beat(8)2
Avg Revenue beat(8)-0.22%
Revenue beat(12)5
Avg Revenue beat(12)0.22%
Revenue beat(16)9
Avg Revenue beat(16)0.83%
PT rev (1m)1.67%
PT rev (3m)-0.76%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-0.07%
EPS NY rev (1m)0%
EPS NY rev (3m)1%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
Industry RankSector Rank
PE 83.56
Fwd PE 40.78
P/S 4.16
P/FCF 96.61
P/OCF 83.31
P/B 10.32
P/tB 121.85
EV/EBITDA N/A
EPS(TTM)0.34
EY1.2%
EPS(NY)0.7
Fwd EY2.45%
FCF(TTM)0.29
FCFY1.04%
OCF(TTM)0.34
OCFY1.2%
SpS6.84
BVpS2.75
TBVpS0.23
PEG (NY)0.35
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -17.39%
ROE -42.78%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 77.31%
FCFM 4.3%
ROA(3y)-14.89%
ROA(5y)-16.52%
ROE(3y)-33.7%
ROE(5y)-31.7%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.51%
GM growth 5Y1.01%
F-Score5
Asset Turnover1.01
Health
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 1.78
Debt/EBITDA N/A
Cap/Depr 27.11%
Cap/Sales 0.69%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.96
Quick Ratio 0.96
Altman-Z 3.45
F-Score5
WACC13.96%
ROIC/WACCN/A
Cap/Depr(3y)33.6%
Cap/Depr(5y)42.02%
Cap/Sales(3y)0.61%
Cap/Sales(5y)1.12%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)126.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1400%
EPS Next Y236.68%
EPS Next 2Y123.07%
EPS Next 3Y90%
EPS Next 5Y57.42%
Revenue 1Y (TTM)26.7%
Revenue growth 3Y35.91%
Revenue growth 5Y33.46%
Sales Q2Q%20%
Revenue Next Year22.59%
Revenue Next 2Y18.49%
Revenue Next 3Y17.47%
Revenue Next 5Y17.23%
EBIT growth 1Y-1.09%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year804.91%
EBIT Next 3Y161.01%
EBIT Next 5Y100.54%
FCF growth 1Y98.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y91.91%
OCF growth 3YN/A
OCF growth 5YN/A