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. Both the health and profitability get an excellent rating, making PINS a very profitable company, without any liquidiy or solvency issues. PINS is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make PINS a good candidate 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
Looking at the Return On Assets, with a value of 35.89%, PINS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 40.44%, PINS belongs to the best of the industry, outperforming 98.57% of the companies in the same industry.
PINS has a better Return On Invested Capital (3.22%) than 67.14% 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
With an excellent Profit Margin value of 50.41%, PINS belongs to the best of the industry, outperforming 98.57% of the companies in the same industry.
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.
PINS's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 79.57%, PINS is doing good in the industry, outperforming 74.29% 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 | 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.
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 26.80. This indicates that PINS is financially healthy and has little risk of bankruptcy at the moment.
PINS's Altman-Z score of 26.80 is amongst the best of the industry. PINS outperforms 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 | 26.8 |
ROIC/WACC0.34
WACC9.34%
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 92.86% 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.
PINS has a Quick ratio of 8.41. This is amongst the best in the industry. PINS outperforms 92.86% 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.
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.
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 Year14.61%
Revenue Next 2Y15.05%
Revenue Next 3Y13.92%
Revenue Next 5Y14.34%
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.
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 25.07, which means the current valuation is very expensive for PINS.
Compared to the rest of the industry, the Price/Earnings ratio of PINS is on the same level as its industry peers.
PINS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.50.
The Price/Forward Earnings ratio is 17.35, which indicates a rather expensive current valuation of PINS.
Based on the Price/Forward Earnings ratio, PINS is valued a bit cheaper than 68.57% of the companies in the same industry.
PINS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.07 | ||
| Fwd PE | 17.35 |
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 | 26.37 | ||
| EV/EBITDA | 95.61 |
4.3 Compensation for Growth
PINS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PINS may justify a higher PE ratio.
PINS's earnings are expected to grow with 19.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)N/A
EPS Next 2Y21.44%
EPS Next 3Y19.71%
5. Dividend
5.1 Amount
No dividends for PINS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
37.11
+1.03 (+2.85%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.74%
Inst Owner Change0.82%
Ins Owners0.47%
Ins Owner Change4.03%
Market Cap25.11B
Analysts81.28
Price Target41.31 (11.32%)
Short Float %4%
Short Ratio2.1
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)1.01%
PT rev (3m)-10.78%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)-2.51%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-3.64%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.07 | ||
| Fwd PE | 17.35 | ||
| P/S | 6.68 | ||
| P/FCF | 26.37 | ||
| P/OCF | 25.83 | ||
| P/B | 5.36 | ||
| P/tB | 5.48 | ||
| EV/EBITDA | 95.61 |
EPS(TTM)1.48
EY3.99%
EPS(NY)2.14
Fwd EY5.76%
FCF(TTM)1.41
FCFY3.79%
OCF(TTM)1.44
OCFY3.87%
SpS5.56
BVpS6.93
TBVpS6.77
PEG (NY)1.08
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 | 26.8 |
F-Score6
WACC9.34%
ROIC/WACC0.34
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 Y23.24%
EPS Next 2Y21.44%
EPS Next 3Y19.71%
EPS Next 5Y18.63%
Revenue 1Y (TTM)17.81%
Revenue growth 3Y12.25%
Revenue growth 5Y26.12%
Sales Q2Q%15.54%
Revenue Next Year14.61%
Revenue Next 2Y15.05%
Revenue Next 3Y13.92%
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%