Long-established in the Interactive Media industry, Angi Inc (ANGI, Financial) has enjoyed a stellar reputation. It has recently witnessed a daily gain of 6.48%, juxtaposed with a three-month change of -38.1%. However, fresh insights from the GF Score hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of Angi Inc.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 6/10
- Profitability rank: 4/10
- Growth rank: 6/10
- GF Value rank: 2/10
- Momentum rank: 7/10
Based on the above method, GuruFocus assigned Angi Inc the GF Score of 69 out of 100, which signals poor future outperformance potential.
Angi Inc: A Snapshot of Its Business
With a market cap of $1.04 billion and sales of $1.71 billion, Angi Inc operates in the Interactive Media industry, connecting quality home service professionals across different categories, from repairing and remodeling to cleaning and landscaping, with consumers. The company has four operating segments: Ads and Leads, Services, Roofing, and International (Europe and Canada). The majority of the revenue is earned from the United States. However, its operating margin of -4.25% indicates struggles in profitability.
Profitability Concerns
Angi Inc's low Profitability rank can also raise warning signals. The company's Operating Margin has declined over the past five years ((-193.95%)), as shown by the following data: 2018: 5.64; 2019: 2.91; 2020: -0.43; 2021: -4.54; 2022: -5.30. Additionally, Angi Inc's Gross Margin has also declined over the past five years, as evidenced by the data: 2018: 95.08; 2019: 96.49; 2020: 88.20; 2021: 80.66; 2022: 76.84. This trend underscores the company's struggles to convert its revenue into profits.
Looking Ahead
Given the company's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential underperformance. While Angi Inc has a strong reputation in the Interactive Media industry, its declining profitability and growth ranks suggest that it may struggle to maintain its historical performance. As value investors, it's crucial to consider these factors when making investment decisions.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
