PINTEREST INC- CLASS A (PINS) Stock Fundamental Analysis
NYSE:PINS - New York Stock Exchange, Inc. - US72352L1061 - Common Stock - Currency: USD
Taking everything into account, PINS scores 7 out of 10 in our fundamental rating. PINS was compared to 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes PINS very considerable for growth and quality investing!
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 multiple years PINS reported negative net income over the last 5 years.
Each year in the past 5 years PINS had a positive operating cash flow.
1.2 Ratios
PINS has a Return On Assets of 35.89%. This is amongst the best in the industry. PINS outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 40.44%, PINS belongs to the top of the industry, outperforming 98.59% of the companies in the same industry.
PINS's Return On Invested Capital of 3.22% is fine compared to the rest of the industry. PINS outperforms 67.61% 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
PINS's Profit Margin of 50.41% is amongst the best of the industry. PINS outperforms 98.59% of its industry peers.
In the last couple of years the Profit Margin of PINS has grown nicely.
The Operating Margin of PINS (5.28%) is better than 64.79% of its industry peers.
In the last couple of years the Operating Margin of PINS has declined.
PINS's Gross Margin of 79.57% is fine compared to the rest of the industry. PINS outperforms 74.65% 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
PINS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PINS has less shares outstanding
The number of shares outstanding for PINS has been increased compared to 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
PINS has an Altman-Z score of 24.69. This indicates that PINS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 24.69, PINS belongs to the top of the industry, outperforming 94.37% of the companies in the same industry.
PINS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 24.69 |
ROIC/WACC0.36
WACC9.05%
2.3 Liquidity
A Current Ratio of 8.41 indicates that PINS has no problem at all paying its short term obligations.
PINS has a better Current ratio (8.41) than 92.96% of its industry peers.
A Quick Ratio of 8.41 indicates that PINS has no problem at all paying its short term obligations.
The Quick ratio of PINS (8.41) is better than 92.96% of its industry peers.
| 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.
PINS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.81%.
Measured over the past years, PINS shows a very strong growth in Revenue. The Revenue has been growing by 26.12% on average per year.
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
Based on estimates for the next years, PINS will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.63% on average per year.
PINS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.34% yearly.
EPS Next Y25.14%
EPS Next 2Y22.27%
EPS Next 3Y20.1%
EPS Next 5Y18.63%
Revenue Next Year14.5%
Revenue Next 2Y14.95%
Revenue Next 3Y13.72%
Revenue Next 5Y14.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.86, which indicates a rather expensive current valuation of PINS.
Compared to the rest of the industry, the Price/Earnings ratio of PINS indicates a somewhat cheap valuation: PINS is cheaper than 60.56% of the companies listed in the same industry.
PINS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 15.61, the valuation of PINS can be described as correct.
PINS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PINS is cheaper than 69.01% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. PINS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 15.61 |
4.2 Price Multiples
PINS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, PINS is valued a bit cheaper than the industry average as 60.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.04 | ||
| EV/EBITDA | 86.15 |
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.
The decent profitability rating of PINS 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)0.91
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 |
33.84
-0.18 (-0.53%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.74%
Inst Owner Change4.86%
Ins Owners0.47%
Ins Owner Change4.44%
Market Cap22.90B
Analysts81.28
Price Target40.9 (20.86%)
Short Float %4.8%
Short Ratio2.12
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)-2.28%
PT rev (3m)-12.7%
EPS NQ rev (1m)-2.76%
EPS NQ rev (3m)-4.33%
EPS NY rev (1m)-2.16%
EPS NY rev (3m)-3.58%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)-1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 15.61 | ||
| P/S | 6.09 | ||
| P/FCF | 24.04 | ||
| P/OCF | 23.55 | ||
| P/B | 4.88 | ||
| P/tB | 5 | ||
| EV/EBITDA | 86.15 |
EPS(TTM)1.48
EY4.37%
EPS(NY)2.17
Fwd EY6.41%
FCF(TTM)1.41
FCFY4.16%
OCF(TTM)1.44
OCFY4.25%
SpS5.56
BVpS6.93
TBVpS6.77
PEG (NY)0.91
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 | 24.69 |
F-Score6
WACC9.05%
ROIC/WACC0.36
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 Year14.5%
Revenue Next 2Y14.95%
Revenue Next 3Y13.72%
Revenue Next 5Y14.34%
EBIT growth 1Y187.08%
EBIT growth 3Y-18.01%
EBIT growth 5YN/A
EBIT Next Year632.93%
EBIT Next 3Y121.29%
EBIT Next 5Y70.23%
FCF growth 1Y129.38%
FCF growth 3Y8.11%
FCF growth 5YN/A
OCF growth 1Y121.3%
OCF growth 3Y8.61%
OCF growth 5Y324.47%