StockStory Flags BILL’s Slowing Growth and Thin Profitability

StockStory argued that BILL’s slowing growth and continuing losses made the stock less attractive. Shares were priced at $44.21 in its analysis; as of Monday afternoon, they traded at $41.88, down 5.36% since the previous close.

BILL reported $434.2 million in billings for Q2. StockStory said billings growth averaged 12.7% year over year across the past four quarters, which it viewed as a sign of demand challenges amid rising competition.

Wall Street analysts expected revenue to increase 10.7% over the next 12 months, according to the article. That compares with 47.3% annualized growth over the prior five years. BILL’s operating margin improved by 1.1 percentage points over two years, but remained negative 4.4% for the trailing 12 months.

StockStory called the company’s 2.4-times forward price-to-sales valuation fair, but said the potential upside did not outweigh the downside. It concluded that BILL did not meet its investment bar.