ServiceTitan: Moderate Growth With Titanic Losses

Stock Scanner
3.38K Followers
(12min)

Summary

  • ServiceTitan has impressive revenue growth but significant operating losses, primarily due to hefty stock compensation, making it a risky investment.
  • The Rule of 0 metric for ServiceTitan is -13, indicating the company will struggle to scale to profitability and likely underperform over time.
  • Valuation suggests a fair value of $54 per share, implying over 50% downside from the current price of $120; recommend selling or shorting the stock.
  • The upcoming share lock-up expiration on June 10th could trigger significant insider selling, further pressuring the stock price downward.

Manager with a digital tablet next to vans.

Scharfsinn86/iStock via Getty Images

Introduction

Who knew Trump’s tariffs would decimate the one sector that is completely immune: SaaS? The problem with many of these companies is that they generate regular operating losses, glossed over by pro forma financials that exclude a

This article was written by

3.38K Followers
Run a long/short partnership. 25 years of experience in business and finance. CFA charter holder. Analysis is fundamental, focused on the numbers and takes a skeptical view of company declared pro-forma figures. Occasional speaker on business/finance/economic issues. Note for commenters who feel bold hiding behind a veil of anonymity: The "Analyst" designation is issued by SA to anyone who contributes an article. If you have a problem with it, take it up with them. Don't necessarily have a position in stocks we comment on. If you don't agree, best to write your own comment rather than replying to ours. Any ad hominem attacks will be met with an appropriate response.

Analyst’s Disclosure:I/we have a beneficial short position in the shares of TTAN, ASAN, CFLT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About TTAN Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on TTAN

Related Stocks

SymbolLast Price% Chg
TTAN
--