Where Thoughtworks Holding Stands With Analysts

Throughout the last three months, 4 analysts have evaluated Thoughtworks Holding TWKS, offering a diverse set of opinions from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $4.85, a high estimate of $6.00, and a low estimate of $3.40. A 6.19% drop is evident in the current average compared to the previous average price target of $5.17.

Breaking Down Analyst Ratings: A Detailed Examination

A comprehensive examination of how financial experts perceive Thoughtworks Holding is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Thoughtworks Holding. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Thoughtworks Holding compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Thoughtworks Holding's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Capture valuable insights into Thoughtworks Holding's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

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Delving into Thoughtworks Holding's Background

Thoughtworks Holding Inc is a global technology consultancy that integrates strategy, design and software engineering to enable enterprises and technology disruptors across the globe to thrive as modern digital businesses. Its global service lines include Enterprise Modernization, Platforms and Cloud; Customer Experience, Product and Design; Data and Artificial Intelligence (AI), and Digital Transformation and Operations. Geographically, it derives a majority of its revenue from North America and also has a presence in APAC; Europe, and LATAM.

Unraveling the Financial Story of Thoughtworks Holding

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Challenges: Thoughtworks Holding's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -15.73%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Thoughtworks Holding's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -9.23%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Thoughtworks Holding's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -3.29%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Thoughtworks Holding's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -1.96%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Thoughtworks Holding's debt-to-equity ratio is below the industry average at 0.44, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Basics of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.