Could Webull Stock’s Cash Flow Spark the Next Rally?
We think Webull (BULL) stock is worth a look: It is growing, producing cash, and available at a significant valuation discount. Companies like this can use cash to fuel additional revenue growth, or simply pay their shareholders through dividends or buybacks. Either move makes them attractive to the market.
What Is Happening With BULL
BULL may be up 5.4% so far this year but is still available at a significant discount to its 3-month, 1-year, and 2-year highs. This can be attributed to significant post-SPAC volatility and intense competition in the digital brokerage sector. Initial market exuberance after its debut also led to a valuation detached from immediate fundamentals.
Here is what’s going well for the company. Webull’s customer assets grew 84% in Q3 2025, driven by international expansion and diverse offerings including extended-hours trading. Operational efficiency improved with marketing spend down 40% year-over-year, bolstering cash flow from multiple revenue streams.
BULL Has Strong Fundamentals
- Growing: Revenue growth of 41.8% over the last twelve months means that the cash pile is going to grow.
- Profitable: Operating margin of 10.9%.
- Valuation Discount: BULL stock is currently trading at 30% below its 3-month high, 87% below its 1-year high, and 87% below its 2-year high.
Below is a quick comparison of BULL fundamentals with S&P medians.
| BULL | S&P Median | |
|---|---|---|
| Sector | Information Technology | – |
| Industry | Application Software | – |
| Free Cash Flow Yield | � | 3.9% |
| Revenue Growth LTM | 41.8% | 6.4% |
| Operating Margin LTM | 10.9% | 18.8% |
| PS Ratio | 7.8 | 3.3 |
| PE Ratio | 123.5 | 24.1 |
| Discount vs 3-Month High | -30.3% | -4.1% |
| Discount vs 1-Year High | -87.0% | -8.4% |
| Discount vs 2-Year High | -87.0% | -11.7% |
*LTM: Last Twelve Months
But What About The Risk Involved?
While BULL stock may be a compelling investment opportunity, it’s always helpful to be aware of a stock’s history of drawdown. BULL took a hit of 68% in the Dot-Com crash, 65% during the Global Financial Crisis, and 58% in the 2022 inflation selloff. Even the less severe downturns — like 2018 and the Covid pullback — triggered drops north of 20%. The stock shows resilience, but history tells us sharp slides can’t be ruled out, no matter how strong the fundamentals look.
Other Stocks Like BULL
Not ready to act on BULL? You could consider these alternatives:
We chose these stocks using the following criteria:
- Greater than $2 Bil in market cap
- Positive revenue growth
- High free cash flow yield
- Meaningful discount to 3M, 1Y, and 2Y highs
A portfolio that was built starting 12/31/2016 with stocks that fulfil the criteria above would have performed as follows:
- Average 6-month and 12-month forward returns of 25.7% and 57.9% respectively
- Win rate (percentage of picks returning positive) of >70% for both 6-month and 12-month periods
Portfolios Win When Stock Picks Fall Short
Stocks can jump or crash but long term success comes from staying invested. The right portfolio helps you ride gains and cushion single stock drops
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.