PINTEREST INC- CLASS A (NYSE:PINS) is showing decent growth, but is still valued reasonably.

Our stock screening tool has pinpointed PINTEREST INC- CLASS A (NYSE:PINS) as a growth stock that isn't overvalued. PINS is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

A Closer Look at Growth for PINS

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. PINS has received a 8 out of 10:

• The Earnings Per Share has grown by an impressive 21.31% over the past year.
• PINS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.67% yearly.
• The Revenue has grown by 19.35% in the past year. This is quite good.
• The Revenue has been growing by 26.12% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 18.63% on average over the next years. This is quite good.
• PINS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.02% yearly.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Evaluating Valuation: PINS

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. PINS has received a 5 out of 10:

• 64.29% of the companies in the same industry are more expensive than PINS, based on the Price/Earnings ratio.
• PINS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PINS is cheaper than 71.43% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of PINS to the average of the S&P500 Index (20.44), we can say PINS is valued slightly cheaper.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of PINS may justify a higher PE ratio.
• PINS's earnings are expected to grow with 21.64% in the coming years. This may justify a more expensive valuation.

Health Analysis for PINS

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For PINS, the assigned 9 for health provides valuable insights:

• An Altman-Z score of 21.45 indicates that PINS is not in any danger for bankruptcy at the moment.
• The Altman-Z score of PINS (21.45) is better than 97.14% of its industry peers.
• There is no outstanding debt for PINS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• A Current Ratio of 8.75 indicates that PINS has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 8.75, PINS belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
• PINS has a Quick Ratio of 8.75. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Quick ratio, with a value of 8.75, PINS belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.

How do we evaluate the Profitability for PINS?

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. PINS was assigned a score of 7 for profitability:

• PINS has a Return On Assets of 34.85%. This is amongst the best in the industry. PINS outperforms 100.00% of its industry peers.
• The Return On Equity of PINS (39.19%) is better than 98.57% of its industry peers.
• PINS's Return On Invested Capital of 2.87% is fine compared to the rest of the industry. PINS outperforms 65.71% of its industry peers.
• The Profit Margin of PINS (51.07%) is better than 98.57% of its industry peers.
• In the last couple of years the Profit Margin of PINS has grown nicely.
• PINS has a better Operating Margin (4.93%) than 61.43% of its industry peers.
• PINS's Gross Margin of 79.42% is fine compared to the rest of the industry. PINS outperforms 71.43% of its industry peers.
• In the last couple of years the Gross Margin of PINS has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of PINS for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.