PINTEREST INC- CLASS A (PINS)
US72352L1061 - Common Stock
Taking everything into account, PINS scores 6 out of 10 in our fundamental rating. PINS was compared to 68 industry peers in the Interactive Media & Services industry. No worries on liquidiy or solvency for PINS as it has an excellent financial health rating, but there are worries on the profitability. PINS is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
PINS had positive earnings in the past year.
PINS had a positive operating cash flow in the past year.
In the past 5 years PINS reported 4 times negative net income.
In the past 5 years PINS always reported a positive cash flow from operatings.
1.2 Ratios
PINS has a Return On Assets (-0.99%) which is in line with its industry peers.
PINS has a Return On Equity (-1.15%) which is comparable to the rest of the industry.
The Return On Invested Capital of PINS (0.03%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.99% | ||
| ROE | -1.15% | ||
| ROIC | 0.03% |
ROA(3y)1.82%
ROA(5y)-11.27%
ROE(3y)2.11%
ROE(5y)-13.33%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PINS has a Operating Margin of 0.04%. This is comparable to the rest of the industry: PINS outperforms 58.21% of its industry peers.
Looking at the Gross Margin, with a value of 77.46%, PINS is in the better half of the industry, outperforming 68.66% 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 | 0.04% | ||
| PM (TTM) | N/A | ||
| GM | 77.46% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.79%
GM growth 5Y2.63%
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.
PINS has more shares outstanding than it did 5 years ago.
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.
2.2 Solvency
An Altman-Z score of 27.64 indicates that PINS is not in any danger for bankruptcy at the moment.
PINS's Altman-Z score of 27.64 is amongst the best of the industry. PINS outperforms 98.51% 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 | 27.64 |
ROIC/WACC0
WACC9.44%
2.3 Liquidity
A Current Ratio of 10.53 indicates that PINS has no problem at all paying its short term obligations.
PINS has a better Current ratio (10.53) than 95.52% of its industry peers.
A Quick Ratio of 10.53 indicates that PINS has no problem at all paying its short term obligations.
The Quick ratio of PINS (10.53) is better than 95.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 10.53 | ||
| Quick Ratio | 10.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 80.33% over the past year.
PINS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 41.29% yearly.
The Revenue has grown by 9.01% in the past year. This is quite good.
Measured over the past years, PINS shows a very strong growth in Revenue. The Revenue has been growing by 32.22% on average per year.
EPS 1Y (TTM)80.33%
EPS 3Y41.29%
EPS 5YN/A
EPS growth Q2Q82.76%
Revenue 1Y (TTM)9.01%
Revenue growth 3Y21.75%
Revenue growth 5Y32.22%
Revenue growth Q2Q11.86%
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 19.34% yearly.
The Revenue is expected to grow by 14.70% on average over the next years. This is quite good.
EPS Next Y24.92%
EPS Next 2Y25.09%
EPS Next 3Y24.22%
EPS Next 5Y19.34%
Revenue Next Year16.99%
Revenue Next 2Y17.68%
Revenue Next 3Y17.62%
Revenue Next 5Y14.7%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
The Price/Earnings ratio is 29.92, which means the current valuation is very expensive for PINS.
Compared to the rest of the industry, the Price/Earnings ratio of PINS indicates a somewhat cheap valuation: PINS is cheaper than 64.18% of the companies listed in the same industry.
PINS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.80.
With a Price/Forward Earnings ratio of 23.95, PINS is valued on the expensive side.
65.67% of the companies in the same industry are more expensive than PINS, based on the Price/Forward Earnings ratio.
PINS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.92 | ||
| Fwd PE | 23.95 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PINS.
Based on the Price/Free Cash Flow ratio, PINS is valued a bit cheaper than the industry average as 62.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.94 | ||
| EV/EBITDA | 820.99 |
4.3 Compensation for Growth
PINS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PINS's earnings are expected to grow with 24.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.2
PEG (5Y)N/A
EPS Next 2Y25.09%
EPS Next 3Y24.22%
5. Dividend
5.1 Amount
PINS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PINTEREST INC- CLASS A
NYSE:PINS (4/18/2024, 7:14:18 PM)
After market: 32.85 -0.06 (-0.18%)32.91
+0.14 (+0.43%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap22.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.92 | ||
| Fwd PE | 23.95 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.99% | ||
| ROE | -1.15% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.04% | ||
| PM (TTM) | N/A | ||
| GM | 77.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 10.53 | ||
| Quick Ratio | 10.53 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)80.33%
EPS 3Y41.29%
EPS 5Y
EPS growth Q2Q
EPS Next Y24.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.01%
Revenue growth 3Y21.75%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 5Y