Analyzing the Financial Health of Slack Technologies Inc. (WORK)

Publicly-traded company Slack Technologies Inc. (NYSE:WORK) had a closing price of $23.00 yesterday. Meanwhile, the average 12-month price target from Wall Street analysts is currently $27.88, this means that the stock is underpriced by 17.5%. In the past 52 weeks the company’s stock price has moved within the range of $19.53 to $42.00.

This particular stock’s 5-day moving average is 22.50, its 20-day moving average is 21.99 and its 100-day moving average is 25.87. Slack Technologies Inc. (WORK) currently has 557.23M shares outstanding, which means that its market capitalization is $12.82B.

The Details: Slack Technologies Inc. (WORK) Financial Health

There are several indicators we can take into consideration when thinking about a stock’s financial health. For example, we can look at a company’s profit margin, which tells us how much of the company’s total sales revenue was kept in earnings. We calculate this figure by dividing net income by net sales revenue. WORK currently has a profit margin of -29.40%.

Looking at a company’s operating margin is also helpful. This number tells us how much profit is kept after considering depreciation and operating expenses. Slack Technologies Inc. (WORK) has an operating margin of -32.80%.

What Does Wall Street Say about Company?

When selecting potential stocks to buy, many investors want to find out what Wall Street professionals are thinking about the company beforehand – like what the average analyst rating is. At the moment, the average analyst rating for WORK is Overweight. Out of 20 total analysts who were surveyed, 2 rated it a sell, 0 rated it a underweight, 2 rated it an overweight, 9 rated it hold, and 7 rated it a Buy.

Three months ago, on the other hand, the average analyst rating for Slack Technologies Inc. (WORK) was a Overweight – from a survey of 17 analysts. Of the analysts who provided ratings, 8 rated the company a Hold, 0 rated it a Sell, 2 rated it an overweight, 1 rated it an underweight, and 6 rated it a Buy.

Understanding Profitability at Slack Technologies Inc. (WORK)

A good way of assessing a public company’s profitability is by looking at its Earnings per Share (EPS). In the most recent financial results released by Slack Technologies Inc., for the quarter ending on 01/2020, the company posted EPS of -0.06. The average estimate of Wall Street analysts had projected -0.06.