SNAP INC - A (SNAP) Stock Fundamental Analysis
USA - NYSE:SNAP - US83304A1060 - Common Stock
7.87 USD
+0.1 (+1.29%)
We assign a fundamental rating of 4 out of 10 to SNAP. SNAP was compared to 70 industry peers in the Interactive Media & Services industry. The financial health of SNAP is average, but there are quite some concerns on its profitability. SNAP is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
SNAP had positive earnings in the past year.
SNAP had a positive operating cash flow in the past year.
In the past 5 years SNAP always reported negative net income.
SNAP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -7.38%, SNAP is doing worse than 64.29% of the companies in the same industry.
SNAP's Return On Equity of -26.40% is on the low side compared to the rest of the industry. SNAP is outperformed by 61.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.38% | ||
| ROE | -26.4% | ||
| ROIC | N/A |
ROA(3y)-14.4%
ROA(5y)-13.7%
ROE(3y)-46.22%
ROE(5y)-38.42%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of SNAP (53.82%) is comparable to the rest of the industry.
SNAP's Gross Margin has improved in the last couple of years.
SNAP does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 53.82% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.14%
GM growth 5Y2.43%
2. Health
2.1 Basic Checks
SNAP does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for SNAP has been increased compared to 1 year ago.
The number of shares outstanding for SNAP has been increased compared to 5 years ago.
The debt/assets ratio for SNAP has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.12, we must say that SNAP is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.12, SNAP is doing worse than 64.29% of the companies in the same industry.
The Debt to FCF ratio of SNAP is 9.11, which is on the high side as it means it would take SNAP, 9.11 years of fcf income to pay off all of its debts.
SNAP has a Debt to FCF ratio of 9.11. This is comparable to the rest of the industry: SNAP outperforms 58.57% of its industry peers.
SNAP has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
SNAP's Debt to Equity ratio of 1.73 is on the low side compared to the rest of the industry. SNAP is outperformed by 81.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | -0.12 |
ROIC/WACCN/A
WACC9.11%
2.3 Liquidity
SNAP has a Current Ratio of 3.88. This indicates that SNAP is financially healthy and has no problem in meeting its short term obligations.
SNAP has a Current ratio of 3.88. This is amongst the best in the industry. SNAP outperforms 81.43% of its industry peers.
SNAP has a Quick Ratio of 3.88. This indicates that SNAP is financially healthy and has no problem in meeting its short term obligations.
SNAP has a Quick ratio of 3.88. This is amongst the best in the industry. SNAP outperforms 81.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
SNAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 106.00%, which is quite impressive.
Measured over the past years, SNAP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.04% on average per year.
The Revenue has grown by 13.18% in the past year. This is quite good.
SNAP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.60% yearly.
EPS 1Y (TTM)106%
EPS 3Y-16.04%
EPS 5YN/A
EPS Q2Q%-105%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%8.75%
3.2 Future
SNAP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.47% yearly.
The Revenue is expected to grow by 9.66% on average over the next years. This is quite good.
EPS Next Y-7.85%
EPS Next 2Y13.82%
EPS Next 3Y23.11%
EPS Next 5Y26.47%
Revenue Next Year9.98%
Revenue Next 2Y10.33%
Revenue Next 3Y10.51%
Revenue Next 5Y9.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.39, which means the current valuation is very expensive for SNAP.
Based on the Price/Earnings ratio, SNAP is valued a bit cheaper than 61.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.57. SNAP is around the same levels.
Based on the Price/Forward Earnings ratio of 20.95, the valuation of SNAP can be described as rather expensive.
SNAP's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of SNAP to the average of the S&P500 Index (23.09), we can say SNAP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.39 | ||
| Fwd PE | 20.95 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SNAP is valued a bit cheaper than 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.89 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SNAP's earnings are expected to grow with 23.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.82%
EPS Next 3Y23.11%
5. Dividend
5.1 Amount
SNAP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:SNAP (10/23/2025, 10:25:05 AM)
7.87
+0.1 (+1.29%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners60.14%
Inst Owner Change0.12%
Ins Owners7.54%
Ins Owner Change-4.65%
Market Cap13.30B
Revenue(TTM)5.64B
Net Income(TTM)-546303000
Analysts64.31
Price Target9.49 (20.58%)
Short Float %9.64%
Short Ratio1.22
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)1
Avg EPS beat(2)2.17%
Min EPS beat(2)-107.59%
Max EPS beat(2)111.94%
EPS beat(4)3
Avg EPS beat(4)19.2%
Min EPS beat(4)-107.59%
Max EPS beat(4)111.94%
EPS beat(8)7
Avg EPS beat(8)51.35%
EPS beat(12)11
Avg EPS beat(12)118.17%
EPS beat(16)13
Avg EPS beat(16)75.56%
Revenue beat(2)0
Avg Revenue beat(2)-1.41%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-1.26%
Min Revenue beat(4)-2.12%
Max Revenue beat(4)-0.71%
Revenue beat(8)2
Avg Revenue beat(8)-0.18%
Revenue beat(12)2
Avg Revenue beat(12)-0.96%
Revenue beat(16)3
Avg Revenue beat(16)-1.09%
PT rev (1m)-1.11%
PT rev (3m)-4.63%
EPS NQ rev (1m)-2.89%
EPS NQ rev (3m)6.25%
EPS NY rev (1m)-0.55%
EPS NY rev (3m)-5.46%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.39 | ||
| Fwd PE | 20.95 | ||
| P/S | 2.36 | ||
| P/FCF | 33.89 | ||
| P/OCF | 22.67 | ||
| P/B | 6.43 | ||
| P/tB | 51.2 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.31
EY3.94%
EPS(NY)0.38
Fwd EY4.77%
FCF(TTM)0.23
FCFY2.95%
OCF(TTM)0.35
OCFY4.41%
SpS3.34
BVpS1.22
TBVpS0.15
PEG (NY)N/A
PEG (5Y)N/A
Graham Number2.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.38% | ||
| ROE | -26.4% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 53.82% | ||
| FCFM | 6.96% |
ROA(3y)-14.4%
ROA(5y)-13.7%
ROE(3y)-46.22%
ROE(5y)-38.42%
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.14%
GM growth 5Y2.43%
F-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 9.11 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 124.37% | ||
| Cap/Sales | 3.45% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 | ||
| Altman-Z | -0.12 |
F-Score7
WACC9.11%
ROIC/WACCN/A
Cap/Depr(3y)104.3%
Cap/Depr(5y)87.64%
Cap/Sales(3y)3.68%
Cap/Sales(5y)3.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)106%
EPS 3Y-16.04%
EPS 5YN/A
EPS Q2Q%-105%
EPS Next Y-7.85%
EPS Next 2Y13.82%
EPS Next 3Y23.11%
EPS Next 5Y26.47%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%8.75%
Revenue Next Year9.98%
Revenue Next 2Y10.33%
Revenue Next 3Y10.51%
Revenue Next 5Y9.66%
EBIT growth 1Y42.96%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year162.29%
EBIT Next 3Y48.31%
EBIT Next 5Y33.83%
FCF growth 1Y384.01%
FCF growth 3Y-0.65%
FCF growth 5YN/A
OCF growth 1Y134.27%
OCF growth 3Y12.18%
OCF growth 5YN/A