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 71 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 growing strongly while it is still valued neutral. This is a good combination! With these ratings, PINS could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year PINS was profitable.
PINS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PINS reported negative net income in multiple years.
PINS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PINS (35.89%) is better than 100.00% of its industry peers.
The Return On Equity of PINS (40.44%) is better than 98.59% of its industry peers.
The Return On Invested Capital of PINS (3.22%) is better than 66.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.89% | ||
| ROE | 40.44% | ||
| ROIC | 3.22% |
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
Looking at the Profit Margin, with a value of 50.41%, PINS belongs to the top of the industry, outperforming 98.59% of the companies in the same industry.
PINS's Profit Margin has improved in the last couple of years.
PINS has a better Operating Margin (5.28%) than 63.38% of its industry peers.
In the last couple of years the Operating Margin of PINS has declined.
The Gross Margin of PINS (79.57%) is better than 71.83% of its industry peers.
PINS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.28% | ||
| PM (TTM) | 50.41% | ||
| GM | 79.57% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 23.12 indicates that PINS is not in any danger for bankruptcy at the moment.
PINS's Altman-Z score of 23.12 is amongst the best of the industry. PINS outperforms 97.18% 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 | 23.12 |
ROIC/WACC0.35
WACC9.18%
2.3 Liquidity
A Current Ratio of 8.41 indicates that PINS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 8.41, PINS belongs to the top of the industry, outperforming 95.77% of the companies in the same industry.
A Quick Ratio of 8.41 indicates that PINS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 8.41, PINS belongs to the top of the industry, outperforming 95.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.41 | ||
| Quick Ratio | 8.41 |
3. Growth
3.1 Past
PINS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.31%, which is quite impressive.
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 17.81% 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)21.31%
EPS 3Y8.67%
EPS 5YN/A
EPS Q2Q%15%
Revenue 1Y (TTM)17.81%
Revenue growth 3Y12.25%
Revenue growth 5Y26.12%
Sales Q2Q%15.54%
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.
Based on estimates for the next years, PINS will show a quite strong growth in Revenue. The Revenue will grow by 14.02% on average per year.
EPS Next Y25.14%
EPS Next 2Y22.27%
EPS Next 3Y20.1%
EPS Next 5Y18.63%
Revenue Next Year14.69%
Revenue Next 2Y15.25%
Revenue Next 3Y14.46%
Revenue Next 5Y14.02%
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
With a Price/Earnings ratio of 20.88, 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 61.97% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.82. PINS is around the same levels.
A Price/Forward Earnings ratio of 14.25 indicates a correct valuation of PINS.
Based on the Price/Forward Earnings ratio, PINS is valued a bit cheaper than 64.79% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PINS to the average of the S&P500 Index (21.76), we can say PINS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.88 | ||
| Fwd PE | 14.25 |
4.2 Price Multiples
PINS's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as PINS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.94 | ||
| EV/EBITDA | 79.15 |
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.
PINS has a very decent profitability rating, which may justify a higher PE ratio.
PINS's earnings are expected to grow with 20.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y22.27%
EPS Next 3Y20.1%
5. Dividend
5.1 Amount
PINS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.9
-0.85 (-2.68%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.75%
Inst Owner Change5.16%
Ins Owners0.38%
Ins Owner Change5.13%
Market Cap20.90B
Analysts80.85
Price Target41.1 (33.01%)
Short Float %5.46%
Short Ratio2.28
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)-13.31%
Min EPS beat(2)-14.91%
Max EPS beat(2)-11.72%
EPS beat(4)2
Avg EPS beat(4)-2.56%
Min EPS beat(4)-14.91%
Max EPS beat(4)13.9%
EPS beat(8)6
Avg EPS beat(8)19.24%
EPS beat(12)9
Avg EPS beat(12)50.94%
EPS beat(16)13
Avg EPS beat(16)56.02%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)-0.59%
Revenue beat(4)0
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)-0.59%
Revenue beat(8)2
Avg Revenue beat(8)-0.43%
Revenue beat(12)3
Avg Revenue beat(12)-0.68%
Revenue beat(16)5
Avg Revenue beat(16)-0.25%
PT rev (1m)-11.22%
PT rev (3m)3.06%
EPS NQ rev (1m)-1.79%
EPS NQ rev (3m)-3.57%
EPS NY rev (1m)-2.16%
EPS NY rev (3m)-3.68%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.88 | ||
| Fwd PE | 14.25 | ||
| P/S | 5.56 | ||
| P/FCF | 21.94 | ||
| P/OCF | 21.49 | ||
| P/B | 4.46 | ||
| P/tB | 4.56 | ||
| EV/EBITDA | 79.15 |
EPS(TTM)1.48
EY4.79%
EPS(NY)2.17
Fwd EY7.02%
FCF(TTM)1.41
FCFY4.56%
OCF(TTM)1.44
OCFY4.65%
SpS5.56
BVpS6.93
TBVpS6.77
PEG (NY)0.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.89% | ||
| ROE | 40.44% | ||
| ROCE | 4.07% | ||
| ROIC | 3.22% | ||
| ROICexc | 6.94% | ||
| ROICexgc | 7.29% | ||
| OM | 5.28% | ||
| PM (TTM) | 50.41% | ||
| GM | 79.57% | ||
| FCFM | 25.32% |
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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 88.9% | ||
| Cap/Sales | 0.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 439.87% | ||
| Profit Quality | 50.23% | ||
| Current Ratio | 8.41 | ||
| Quick Ratio | 8.41 | ||
| Altman-Z | 23.12 |
F-Score6
WACC9.18%
ROIC/WACC0.35
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)21.31%
EPS 3Y8.67%
EPS 5YN/A
EPS Q2Q%15%
EPS Next Y25.14%
EPS Next 2Y22.27%
EPS Next 3Y20.1%
EPS Next 5Y18.63%
Revenue 1Y (TTM)17.81%
Revenue growth 3Y12.25%
Revenue growth 5Y26.12%
Sales Q2Q%15.54%
Revenue Next Year14.69%
Revenue Next 2Y15.25%
Revenue Next 3Y14.46%
Revenue Next 5Y14.02%
EBIT growth 1Y187.08%
EBIT growth 3Y-18.01%
EBIT growth 5YN/A
EBIT Next Year663.96%
EBIT Next 3Y125.93%
EBIT Next 5Y71.06%
FCF growth 1Y129.38%
FCF growth 3Y8.11%
FCF growth 5YN/A
OCF growth 1Y121.3%
OCF growth 3Y8.61%
OCF growth 5Y324.47%