PINTEREST INC- CLASS A (PINS) Stock Fundamental Analysis
NYSE:PINS - US72352L1061 - Common Stock
36.63 USD
-0.07 (-0.19%)
36.7938 USD
+0.16 (+0.45%)
We assign a fundamental rating of 7 out of 10 to PINS. PINS was compared to 70 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making PINS a very profitable company, without any liquidiy or solvency issues. PINS is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make PINS a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
PINS had positive earnings in the past year.
In the past year PINS had a positive cash flow from operations.
In multiple years PINS reported negative net income over the last 5 years.
In the past 5 years PINS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 35.64%, PINS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
PINS has a Return On Equity of 40.02%. This is amongst the best in the industry. PINS outperforms 100.00% of its industry peers.
PINS's Return On Invested Capital of 3.41% is fine compared to the rest of the industry. PINS outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.64% | ||
| ROE | 40.02% | ||
| ROIC | 3.41% |
ROA(3y)10.46%
ROA(5y)7.08%
ROE(3y)11.71%
ROE(5y)7.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 49.30%, PINS belongs to the best of the industry, outperforming 97.10% of the companies in the same industry.
PINS's Profit Margin has improved in the last couple of years.
PINS's Operating Margin of 5.53% is fine compared to the rest of the industry. PINS outperforms 63.77% of its industry peers.
PINS's Operating Margin has declined in the last couple of years.
PINS has a better Gross Margin (79.86%) than 76.81% of its industry peers.
PINS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.53% | ||
| PM (TTM) | 49.3% | ||
| GM | 79.86% |
OM growth 3Y-26.95%
OM growth 5YN/A
PM growth 3Y60.84%
PM growth 5YN/A
GM growth 3Y-0.02%
GM growth 5Y2.97%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PINS is destroying value.
PINS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PINS has more shares outstanding
PINS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
PINS has an Altman-Z score of 26.77. This indicates that PINS is financially healthy and has little risk of bankruptcy at the moment.
PINS has a Altman-Z score of 26.77. This is amongst the best in the industry. PINS outperforms 98.55% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 26.77 |
ROIC/WACC0.37
WACC9.25%
2.3 Liquidity
A Current Ratio of 8.76 indicates that PINS has no problem at all paying its short term obligations.
PINS has a better Current ratio (8.76) than 94.20% of its industry peers.
A Quick Ratio of 8.76 indicates that PINS has no problem at all paying its short term obligations.
The Quick ratio of PINS (8.76) is better than 94.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.76 | ||
| Quick Ratio | 8.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.92% over the past year.
Measured over the past years, PINS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.67% on average per year.
The Revenue has grown by 17.00% in the past year. This is quite good.
PINS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.12% yearly.
EPS 1Y (TTM)16.92%
EPS 3Y8.67%
EPS 5YN/A
EPS Q2Q%13.79%
Revenue 1Y (TTM)17%
Revenue growth 3Y12.25%
Revenue growth 5Y26.12%
Sales Q2Q%16.93%
3.2 Future
Based on estimates for the next years, PINS will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.41% on average per year.
Based on estimates for the next years, PINS will show a quite strong growth in Revenue. The Revenue will grow by 13.30% on average per year.
EPS Next Y26.68%
EPS Next 2Y23.29%
EPS Next 3Y21.57%
EPS Next 5Y15.41%
Revenue Next Year16.66%
Revenue Next 2Y15.68%
Revenue Next 3Y15.24%
Revenue Next 5Y13.3%
3.3 Evolution
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.10 indicates a rather expensive valuation of PINS.
PINS's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.08. PINS is around the same levels.
The Price/Forward Earnings ratio is 16.62, which indicates a correct valuation of PINS.
Based on the Price/Forward Earnings ratio, PINS is valued a bit cheaper than the industry average as 63.77% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, PINS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.1 | ||
| Fwd PE | 16.62 |
4.2 Price Multiples
PINS's Enterprise Value to EBITDA ratio is in line with the industry average.
65.22% of the companies in the same industry are more expensive than PINS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.78 | ||
| EV/EBITDA | 86.94 |
4.3 Compensation for Growth
PINS's 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.
A more expensive valuation may be justified as PINS's earnings are expected to grow with 21.57% in the coming years.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y23.29%
EPS Next 3Y21.57%
5. Dividend
5.1 Amount
PINS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.63
-0.07 (-0.19%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.23%
Inst Owner Change-4.3%
Ins Owners0.45%
Ins Owner Change3.99%
Market Cap24.91B
Analysts81.7
Price Target43.82 (19.63%)
Short Float %4.77%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.99%
Min EPS beat(2)-11.72%
Max EPS beat(2)-8.27%
EPS beat(4)1
Avg EPS beat(4)-5.25%
Min EPS beat(4)-14.91%
Max EPS beat(4)13.9%
EPS beat(8)5
Avg EPS beat(8)8.62%
EPS beat(12)9
Avg EPS beat(12)53.58%
EPS beat(16)12
Avg EPS beat(16)49.81%
Revenue beat(2)1
Avg Revenue beat(2)-0.3%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)0.39%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)0.39%
Revenue beat(8)3
Avg Revenue beat(8)-0.34%
Revenue beat(12)4
Avg Revenue beat(12)-0.47%
Revenue beat(16)5
Avg Revenue beat(16)-0.66%
PT rev (1m)6.09%
PT rev (3m)6.62%
EPS NQ rev (1m)0.67%
EPS NQ rev (3m)-4.25%
EPS NY rev (1m)2.79%
EPS NY rev (3m)1.23%
Revenue NQ rev (1m)2.2%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.1 | ||
| Fwd PE | 16.62 | ||
| P/S | 6.38 | ||
| P/FCF | 23.78 | ||
| P/OCF | 23.2 | ||
| P/B | 5.18 | ||
| P/tB | 5.3 | ||
| EV/EBITDA | 86.94 |
EPS(TTM)1.52
EY4.15%
EPS(NY)2.2
Fwd EY6.02%
FCF(TTM)1.54
FCFY4.21%
OCF(TTM)1.58
OCFY4.31%
SpS5.74
BVpS7.08
TBVpS6.92
PEG (NY)0.9
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.64% | ||
| ROE | 40.02% | ||
| ROCE | 4.32% | ||
| ROIC | 3.41% | ||
| ROICexc | 7.28% | ||
| ROICexgc | 7.64% | ||
| OM | 5.53% | ||
| PM (TTM) | 49.3% | ||
| GM | 79.86% | ||
| FCFM | 26.82% |
ROA(3y)10.46%
ROA(5y)7.08%
ROE(3y)11.71%
ROE(5y)7.96%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-44.09%
ROICexcg growth 5YN/A
ROICexc growth 3Y-43.46%
ROICexc growth 5YN/A
OM growth 3Y-26.95%
OM growth 5YN/A
PM growth 3Y60.84%
PM growth 5YN/A
GM growth 3Y-0.02%
GM growth 5Y2.97%
F-Score6
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 111.04% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 448.59% | ||
| Profit Quality | 54.39% | ||
| Current Ratio | 8.76 | ||
| Quick Ratio | 8.76 | ||
| Altman-Z | 26.77 |
F-Score6
WACC9.25%
ROIC/WACC0.37
Cap/Depr(3y)71.85%
Cap/Depr(5y)59.06%
Cap/Sales(3y)0.66%
Cap/Sales(5y)0.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.92%
EPS 3Y8.67%
EPS 5YN/A
EPS Q2Q%13.79%
EPS Next Y26.68%
EPS Next 2Y23.29%
EPS Next 3Y21.57%
EPS Next 5Y15.41%
Revenue 1Y (TTM)17%
Revenue growth 3Y12.25%
Revenue growth 5Y26.12%
Sales Q2Q%16.93%
Revenue Next Year16.66%
Revenue Next 2Y15.68%
Revenue Next 3Y15.24%
Revenue Next 5Y13.3%
EBIT growth 1Y87.07%
EBIT growth 3Y-18.01%
EBIT growth 5YN/A
EBIT Next Year639.38%
EBIT Next 3Y122.32%
EBIT Next 5Y69.7%
FCF growth 1Y183.09%
FCF growth 3Y8.11%
FCF growth 5YN/A
OCF growth 1Y181.07%
OCF growth 3Y8.61%
OCF growth 5Y324.47%