PINTEREST INC- CLASS A (PINS) Stock Fundamental Analysis
NYSE:PINS - New York Stock Exchange, Inc. - US72352L1061 - Common Stock - Currency: USD
PINS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 70 industry peers in the Interactive Media & Services industry. PINS gets an excellent profitability rating and is at the same time showing great financial health properties. PINS is growing strongly while it is still valued neutral. This is a good combination! These ratings would make PINS suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year PINS was profitable.
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.
PINS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 34.85%, PINS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PINS has a Return On Equity of 39.19%. This is amongst the best in the industry. PINS outperforms 98.57% of its industry peers.
PINS has a Return On Invested Capital of 2.87%. This is in the better half of the industry: PINS outperforms 67.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.85% | ||
| ROE | 39.19% | ||
| ROIC | 2.87% |
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
PINS has a Profit Margin of 51.07%. This is amongst the best in the industry. PINS outperforms 98.57% of its industry peers.
In the last couple of years the Profit Margin of PINS has grown nicely.
PINS has a Operating Margin of 4.93%. This is in the better half of the industry: PINS outperforms 64.29% of its industry peers.
PINS's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 79.42%, PINS is doing good in the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Gross Margin of PINS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.93% | ||
| PM (TTM) | 51.07% | ||
| GM | 79.42% |
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
PINS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PINS has less shares outstanding than it did 1 year ago.
PINS has more shares outstanding than it did 5 years ago.
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
An Altman-Z score of 18.90 indicates that PINS is not in any danger for bankruptcy at the moment.
PINS has a better Altman-Z score (18.90) 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 18.9 |
ROIC/WACC0.32
WACC8.89%
2.3 Liquidity
PINS has a Current Ratio of 8.75. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
PINS has a Current ratio of 8.75. This is amongst the best in the industry. PINS outperforms 95.71% of its industry peers.
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.
PINS has a Quick ratio of 8.75. This is amongst the best in the industry. PINS outperforms 95.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.75 | ||
| Quick Ratio | 8.75 |
3. Growth
3.1 Past
PINS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.82%, which is quite impressive.
The Earnings Per Share has been growing by 8.67% on average over the past years. This is quite good.
PINS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.35%.
The Revenue has been growing by 26.12% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)31.82%
EPS 3Y8.67%
EPS 5YN/A
EPS Q2Q%5.66%
Revenue 1Y (TTM)19.35%
Revenue growth 3Y12.25%
Revenue growth 5Y26.12%
Sales Q2Q%17.62%
3.2 Future
PINS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.63% yearly.
PINS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.02% yearly.
EPS Next Y27.9%
EPS Next 2Y23.08%
EPS Next 3Y21.64%
EPS Next 5Y18.63%
Revenue Next Year14.5%
Revenue Next 2Y15.22%
Revenue Next 3Y14.4%
Revenue Next 5Y14.02%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 18.53, PINS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of PINS indicates a somewhat cheap valuation: PINS is cheaper than 72.86% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.75, PINS is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.49 indicates a correct valuation of PINS.
Based on the Price/Forward Earnings ratio, PINS is valued a bit cheaper than 77.14% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.49. PINS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.53 | ||
| Fwd PE | 14.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PINS is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, PINS is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.33 | ||
| EV/EBITDA | 66.38 |
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.
PINS's earnings are expected to grow with 21.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.66
PEG (5Y)N/A
EPS Next 2Y23.08%
EPS Next 3Y21.64%
5. Dividend
5.1 Amount
No dividends for PINS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.87
+1.38 (+5.41%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.75%
Inst Owner Change-0.21%
Ins Owners0.38%
Ins Owner Change5.13%
Market Cap18.17B
Analysts81.28
Price Target41.85 (55.75%)
Short Float %4.01%
Short Ratio1.92
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)1
Avg EPS beat(2)-0.5%
Min EPS beat(2)-14.91%
Max EPS beat(2)13.9%
EPS beat(4)3
Avg EPS beat(4)12.65%
Min EPS beat(4)-14.91%
Max EPS beat(4)49.13%
EPS beat(8)7
Avg EPS beat(8)72.29%
EPS beat(12)10
Avg EPS beat(12)65.98%
EPS beat(16)14
Avg EPS beat(16)59.88%
Revenue beat(2)0
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-1.74%
Max Revenue beat(2)-0.59%
Revenue beat(4)1
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)3.66%
Revenue beat(8)2
Avg Revenue beat(8)-0.35%
Revenue beat(12)3
Avg Revenue beat(12)-0.73%
Revenue beat(16)6
Avg Revenue beat(16)-0.17%
PT rev (1m)-10.66%
PT rev (3m)3.84%
EPS NQ rev (1m)-0.77%
EPS NQ rev (3m)7.89%
EPS NY rev (1m)-1.68%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)-1.44%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.53 | ||
| Fwd PE | 14.49 | ||
| P/S | 4.98 | ||
| P/FCF | 19.33 | ||
| P/OCF | 18.84 | ||
| P/B | 3.82 | ||
| P/tB | 3.92 | ||
| EV/EBITDA | 66.38 |
EPS(TTM)1.45
EY5.4%
EPS(NY)1.85
Fwd EY6.9%
FCF(TTM)1.39
FCFY5.17%
OCF(TTM)1.43
OCFY5.31%
SpS5.39
BVpS7.03
TBVpS6.86
PEG (NY)0.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.85% | ||
| ROE | 39.19% | ||
| ROCE | 3.64% | ||
| ROIC | 2.87% | ||
| ROICexc | 5.84% | ||
| ROICexgc | 6.12% | ||
| OM | 4.93% | ||
| PM (TTM) | 51.07% | ||
| GM | 79.42% | ||
| FCFM | 25.78% |
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 Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 115.71% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 479.7% | ||
| Profit Quality | 50.48% | ||
| Current Ratio | 8.75 | ||
| Quick Ratio | 8.75 | ||
| Altman-Z | 18.9 |
F-Score6
WACC8.89%
ROIC/WACC0.32
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)31.82%
EPS 3Y8.67%
EPS 5YN/A
EPS Q2Q%5.66%
EPS Next Y27.9%
EPS Next 2Y23.08%
EPS Next 3Y21.64%
EPS Next 5Y18.63%
Revenue 1Y (TTM)19.35%
Revenue growth 3Y12.25%
Revenue growth 5Y26.12%
Sales Q2Q%17.62%
Revenue Next Year14.5%
Revenue Next 2Y15.22%
Revenue Next 3Y14.4%
Revenue Next 5Y14.02%
EBIT growth 1Y14285.4%
EBIT growth 3Y-18.01%
EBIT growth 5YN/A
EBIT Next Year663.96%
EBIT Next 3Y125.93%
EBIT Next 5Y71.06%
FCF growth 1Y55.4%
FCF growth 3Y8.11%
FCF growth 5YN/A
OCF growth 1Y57.37%
OCF growth 3Y8.61%
OCF growth 5Y324.47%