PINTEREST INC- CLASS A (NYSE:PINS) Fits the Profile for Affordable Growth

Investors looking for growth chances at fair prices often use methods that find companies showing good expansion potential without high prices. The "Affordable Growth" screening method looks for stocks with strong growth features, good profit generation, and sound financial numbers while keeping fair price levels. This system tries to mix the search for expansion with careful risk control, steering clear of expensive assets that could be at risk during market downturns.

Growth Path

PINTEREST INC- CLASS A (NYSE:PINS) shows interesting growth features that fit well with affordable growth standards. The company's sales increase has been notably good, with past growth rates above 26% per year and current year-over-year growth staying at a good 16.79%. This steady top-line rise points to a firm market position and working monetization plans. The growth picture goes beyond just sales numbers, with earnings per share showing an 8.67% average yearly rise over recent years. Looking ahead, experts predict continued progress with expected EPS growth of 15.41% per year and sales increase of 13.45% per year. This future growth, while a bit lower than past highs, stays well above market norms and hints at lasting expansion instead of short-term jumps.

Price Evaluation

The price measures for Pinterest show a noteworthy view of fair costing compared to growth outlooks. While the standard price-to-earnings ratio is at 17.18, which seems high on its own, the forward P/E ratio of 12.00 gives another view. More significantly, the PEG ratio, which includes growth forecasts, suggests the stock could be priced low relative to its expansion possibilities. When measured against industry peers, Pinterest sells at a lower price than about 68% of interactive media companies based on forward earnings projections. This price situation looks especially appealing when thinking about the company's growth path and profit numbers, hinting that investors are not paying too much for future growth.

Financial Standing and Profit Generation

Pinterest's financial base stays very solid, with an ideal cash position shown by current and quick ratios of 8.36, putting it in the best group of industry rivals. The company has no debt on its books, removing interest cost worries and giving much financial room. From a profit generation view, Pinterest makes notable returns with ROE of 41.19% and ROA of 36.03%, both numbers sitting near the top of their industry group. The company's profit margin of 48.99% is much better than most competitors, though the operating margin of 6.91% shows there is space to get better at turning sales into operating income.

Strategic Fit

The mix of these points makes Pinterest especially fitting for affordable growth plans. The company's good growth scores (7/10) confirm its expansion qualifications, while fair price scores (6/10) stop investors from paying too much for that growth. Very good financial standing (9/10) lowers downside risk, and sound profit generation (7/10) shows the company's skill at turning growth into real earnings. This even profile deals with the main worry of growth investing, avoiding companies where future good results are already completely reflected in the stock price.

For investors doing their own research, the complete fundamental analysis report gives more detailed views into Pinterest's financial numbers and competitive place.

The Affordable Growth screening system keeps finding interesting options across the market. Look at more affordable growth stock possibilities through our screening tools to find other companies matching these balanced growth and value standards.

Disclaimer: This analysis is for information only and is not investment guidance, a suggestion, or a support of any security. Investors should do their own study and talk with financial experts before making investment choices. Past results do not ensure future outcomes.