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 70 industry peers in the Interactive Media & Services industry. PINS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PINS is growing strongly while it is still valued neutral. This is a good combination! 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 better Return On Assets (35.89%) than 100.00% of its industry peers.
PINS's Return On Equity of 40.44% is amongst the best of the industry. PINS outperforms 98.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.22%, PINS is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
| 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 has a better Profit Margin (50.41%) than 98.57% 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 64.29% of its industry peers.
In the last couple of years the Operating Margin of PINS has declined.
Looking at the Gross Margin, with a value of 79.57%, PINS is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
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.
The number of shares outstanding for PINS has been reduced compared to 1 year ago.
The number of shares outstanding for PINS has been increased compared to 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
PINS has an Altman-Z score of 25.44. This indicates that PINS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PINS (25.44) is better than 95.71% 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 | 25.44 |
ROIC/WACC0.36
WACC8.91%
2.3 Liquidity
PINS has a Current Ratio of 8.41. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 8.41, PINS belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
PINS has a Quick Ratio of 8.41. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
PINS has a better Quick ratio (8.41) than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.41 | ||
| Quick Ratio | 8.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.92% over the past year.
PINS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.67% yearly.
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)16.92%
EPS 3Y8.67%
EPS 5YN/A
EPS Q2Q%13.79%
Revenue 1Y (TTM)19.35%
Revenue growth 3Y12.25%
Revenue growth 5Y26.12%
Sales Q2Q%16.93%
3.2 Future
The Earnings Per Share is expected to grow by 18.63% on average over the next years. This is quite good.
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 Y23.24%
EPS Next 2Y21.44%
EPS Next 3Y19.71%
EPS Next 5Y18.63%
Revenue Next Year14.98%
Revenue Next 2Y15.43%
Revenue Next 3Y14.4%
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.
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 23.11 indicates a rather expensive valuation of PINS.
The rest of the industry has a similar Price/Earnings ratio as PINS.
PINS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.48.
PINS is valuated correctly with a Price/Forward Earnings ratio of 16.43.
Based on the Price/Forward Earnings ratio, PINS is valued a bit cheaper than the industry average as 67.14% of the companies are valued more expensively.
PINS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 16.43 |
4.2 Price Multiples
PINS's Enterprise Value to EBITDA is on the same level as the industry average.
PINS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.96 | ||
| EV/EBITDA | 89.55 |
4.3 Compensation for Growth
The 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 19.71% in the coming years.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y21.44%
EPS Next 3Y19.71%
5. Dividend
5.1 Amount
PINS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
35.13
-4.04 (-10.31%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.23%
Inst Owner Change1%
Ins Owners0.45%
Ins Owner Change3.92%
Market Cap23.77B
Analysts81.7
Price Target42.42 (20.75%)
Short Float %3.79%
Short Ratio2.5
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)3.71%
PT rev (3m)3.2%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-2.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.64%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 16.43 | ||
| P/S | 6.32 | ||
| P/FCF | 24.96 | ||
| P/OCF | 24.45 | ||
| P/B | 5.07 | ||
| P/tB | 5.19 | ||
| EV/EBITDA | 89.55 |
EPS(TTM)1.52
EY4.33%
EPS(NY)2.14
Fwd EY6.09%
FCF(TTM)1.41
FCFY4.01%
OCF(TTM)1.44
OCFY4.09%
SpS5.56
BVpS6.93
TBVpS6.77
PEG (NY)0.99
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 | 25.44 |
F-Score6
WACC8.91%
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)16.92%
EPS 3Y8.67%
EPS 5YN/A
EPS Q2Q%13.79%
EPS Next Y23.24%
EPS Next 2Y21.44%
EPS Next 3Y19.71%
EPS Next 5Y18.63%
Revenue 1Y (TTM)19.35%
Revenue growth 3Y12.25%
Revenue growth 5Y26.12%
Sales Q2Q%16.93%
Revenue Next Year14.98%
Revenue Next 2Y15.43%
Revenue Next 3Y14.4%
Revenue Next 5Y14.34%
EBIT growth 1Y187.08%
EBIT growth 3Y-18.01%
EBIT growth 5YN/A
EBIT Next Year639.38%
EBIT Next 3Y122.32%
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%