SNAP INC - A (SNAP) Stock Fundamental Analysis
NYSE:SNAP - New York Stock Exchange, Inc. - US83304A1060 - Common Stock - Currency: USD
Overall SNAP gets a fundamental rating of 4 out of 10. We evaluated SNAP against 70 industry peers in the Interactive Media & Services industry. SNAP scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SNAP is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
SNAP had positive earnings in the past year.
In the past year SNAP had a positive cash flow from operations.
SNAP had negative earnings in each of the past 5 years.
Of the past 5 years SNAP 4 years had a positive operating cash flow.
1.2 Ratios
SNAP's Return On Assets of -7.01% is on the low side compared to the rest of the industry. SNAP is outperformed by 61.43% of its industry peers.
SNAP has a worse Return On Equity (-23.03%) than 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.01% | ||
| ROE | -23.03% | ||
| 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 (54.09%) is worse than 61.43% of its industry peers.
SNAP's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for SNAP so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 54.09% |
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.
SNAP has more shares outstanding than it did 1 year ago.
SNAP has more shares outstanding than it did 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 0.36, we must say that SNAP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SNAP (0.36) is worse than 62.86% of its industry peers.
SNAP has a debt to FCF ratio of 12.24. This is a negative value and a sign of low solvency as SNAP would need 12.24 years to pay back of all of its debts.
The Debt to FCF ratio of SNAP (12.24) is comparable to the rest of the industry.
SNAP has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.55, SNAP is doing worse than 81.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 12.24 | ||
| Altman-Z | 0.36 |
ROIC/WACCN/A
WACC7.49%
2.3 Liquidity
A Current Ratio of 4.30 indicates that SNAP has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.30, SNAP is doing good in the industry, outperforming 80.00% of the companies in the same industry.
A Quick Ratio of 4.30 indicates that SNAP has no problem at all paying its short term obligations.
SNAP has a better Quick ratio (4.30) than 81.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.3 | ||
| Quick Ratio | 4.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 200.00% over the past year.
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.
SNAP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.91%.
Measured over the past years, SNAP shows a very strong growth in Revenue. The Revenue has been growing by 25.60% on average per year.
EPS 1Y (TTM)200%
EPS 3Y-16.04%
EPS 5YN/A
EPS Q2Q%133.33%
Revenue 1Y (TTM)14.91%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%14.1%
3.2 Future
The Earnings Per Share is expected to grow by 27.88% on average over the next years. This is a very strong growth
Based on estimates for the next years, SNAP will show a quite strong growth in Revenue. The Revenue will grow by 10.04% on average per year.
EPS Next Y-3.14%
EPS Next 2Y17%
EPS Next 3Y24.89%
EPS Next 5Y27.88%
Revenue Next Year9.14%
Revenue Next 2Y9.94%
Revenue Next 3Y10.43%
Revenue Next 5Y10.04%
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
Based on the Price/Earnings ratio of 28.33, the valuation of SNAP can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SNAP is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.21. SNAP is around the same levels.
SNAP is valuated rather expensively with a Price/Forward Earnings ratio of 23.55.
The rest of the industry has a similar Price/Forward Earnings ratio as SNAP.
SNAP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.33 | ||
| Fwd PE | 23.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SNAP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.94 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SNAP's earnings are expected to grow with 24.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17%
EPS Next 3Y24.89%
5. Dividend
5.1 Amount
No dividends for SNAP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.35
+0.66 (+7.59%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners63.91%
Inst Owner Change4.53%
Ins Owners7.92%
Ins Owner Change-0.06%
Market Cap15.63B
Analysts64.8
Price Target9.79 (4.71%)
Short Float %9.62%
Short Ratio2.7
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)2
Avg EPS beat(2)62.53%
Min EPS beat(2)13.12%
Max EPS beat(2)111.94%
EPS beat(4)4
Avg EPS beat(4)46.21%
Min EPS beat(4)0.45%
Max EPS beat(4)111.94%
EPS beat(8)8
Avg EPS beat(8)71.54%
EPS beat(12)11
Avg EPS beat(12)124.82%
EPS beat(16)14
Avg EPS beat(16)163.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.01%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)-0.71%
Revenue beat(8)2
Avg Revenue beat(8)0.01%
Revenue beat(12)2
Avg Revenue beat(12)-1.14%
Revenue beat(16)4
Avg Revenue beat(16)-0.1%
PT rev (1m)-1.51%
PT rev (3m)-25.36%
EPS NQ rev (1m)32.55%
EPS NQ rev (3m)-93.08%
EPS NY rev (1m)12.31%
EPS NY rev (3m)-22.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.06%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-4.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.33 | ||
| Fwd PE | 23.55 | ||
| P/S | 2.83 | ||
| P/FCF | 52.94 | ||
| P/OCF | 32.78 | ||
| P/B | 6.76 | ||
| P/tB | 28.69 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.33
EY3.53%
EPS(NY)0.4
Fwd EY4.25%
FCF(TTM)0.18
FCFY1.89%
OCF(TTM)0.29
OCFY3.05%
SpS3.31
BVpS1.38
TBVpS0.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.01% | ||
| ROE | -23.03% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 54.09% | ||
| FCFM | 5.34% |
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 12.24 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 117.86% | ||
| Cap/Sales | 3.28% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.3 | ||
| Quick Ratio | 4.3 | ||
| Altman-Z | 0.36 |
F-Score7
WACC7.49%
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)200%
EPS 3Y-16.04%
EPS 5YN/A
EPS Q2Q%133.33%
EPS Next Y-3.14%
EPS Next 2Y17%
EPS Next 3Y24.89%
EPS Next 5Y27.88%
Revenue 1Y (TTM)14.91%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%14.1%
Revenue Next Year9.14%
Revenue Next 2Y9.94%
Revenue Next 3Y10.43%
Revenue Next 5Y10.04%
EBIT growth 1Y50.24%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year160.68%
EBIT Next 3Y49.52%
EBIT Next 5Y34.57%
FCF growth 1Y462.23%
FCF growth 3Y-0.65%
FCF growth 5YN/A
OCF growth 1Y128.92%
OCF growth 3Y12.18%
OCF growth 5YN/A