StockStory Flags Three Companies With Negative Operating Margins

StockStory flagged Asana, Compass and Ocular Therapeutix as unprofitable companies facing business challenges. It cited trailing 12-month GAAP operating margins of -19.4% for Asana, -2.6% for Compass and -603% for Ocular Therapeutix.

For Asana, StockStory pointed to average annual recurring revenue growth of 9.5% over the last year and a net revenue retention rate of 96.5%. The publisher also cited a drawn-out sales process with enterprise clients.

Compass's annual revenue growth averaged 14% over the last five years, which StockStory said fell short of its standards for the consumer discretionary sector. It also cited persistent operating losses and a lack of free cash flow.

For Ocular Therapeutix, StockStory noted that sales declined by 7.7% annually over the last two years. It also said earnings per share fell by 7.5% annually over the last five years, while revenue grew.

The publisher cited a 371.3 percentage point decline in Ocular Therapeutix's free cash flow margin over the last five years, which it linked to increased investment to defend the company's market position.