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. While SNAP seems to be doing ok healthwise, 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
In the past year SNAP was profitable.
In the past year SNAP had a positive cash flow from operations.
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
With a Return On Assets value of -7.38%, SNAP is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -26.40%, SNAP is doing worse than 64.29% of the companies in the same industry.
| 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
SNAP's Gross Margin of 53.82% is on the low side compared to the rest of the industry. SNAP is outperformed by 60.00% of its industry peers.
In the last couple of years the Gross Margin of SNAP has grown nicely.
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.
Compared to 1 year ago, SNAP has more shares outstanding
Compared to 5 years ago, SNAP has more shares outstanding
The debt/assets ratio for SNAP has been reduced compared to a year ago.
2.2 Solvency
SNAP has an Altman-Z score of -0.25. This is a bad value and indicates that SNAP is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.25, SNAP is not doing good in the industry: 68.57% of the companies in the same industry are doing better.
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 (9.11) which is comparable to the rest of the industry.
SNAP has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.73, SNAP is doing worse than 81.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | -0.25 |
ROIC/WACCN/A
WACC8.26%
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.
Looking at the Current ratio, with a value of 3.88, SNAP is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
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's Quick ratio of 3.88 is fine compared to the rest of the industry. SNAP outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 106.00% over the past year.
The earnings per share for SNAP have been decreasing by -16.04% on average. This is quite bad
The Revenue has grown by 13.18% in the past year. This is quite good.
The Revenue has been growing by 25.60% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, SNAP will show a very strong growth in Earnings Per Share. The EPS will grow by 27.88% on average per year.
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-2.53%
EPS Next 2Y16.54%
EPS Next 3Y24.29%
EPS Next 5Y27.88%
Revenue Next Year9.41%
Revenue Next 2Y10.15%
Revenue Next 3Y10.6%
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
The Price/Earnings ratio is 23.06, which indicates a rather expensive current valuation of SNAP.
Based on the Price/Earnings ratio, SNAP is valued a bit cheaper than 65.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.87, SNAP is valued at the same level.
Based on the Price/Forward Earnings ratio of 18.15, the valuation of SNAP can be described as rather expensive.
SNAP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SNAP is cheaper than 64.29% of the companies in the same industry.
SNAP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.06 | ||
| Fwd PE | 18.15 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as SNAP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.66 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as SNAP's earnings are expected to grow with 24.29% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.54%
EPS Next 3Y24.29%
5. Dividend
5.1 Amount
SNAP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.15
+0.07 (+0.99%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners62.96%
Inst Owner Change-0.9%
Ins Owners8.07%
Ins Owner Change-0.42%
Market Cap12.03B
Analysts64.9
Price Target10.07 (40.84%)
Short Float %9.87%
Short Ratio3.18
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)2.91%
PT rev (3m)1.36%
EPS NQ rev (1m)1.1%
EPS NQ rev (3m)-69.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.37%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.06 | ||
| Fwd PE | 18.15 | ||
| P/S | 2.13 | ||
| P/FCF | 30.66 | ||
| P/OCF | 20.51 | ||
| P/B | 5.81 | ||
| P/tB | 46.31 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.31
EY4.34%
EPS(NY)0.39
Fwd EY5.51%
FCF(TTM)0.23
FCFY3.26%
OCF(TTM)0.35
OCFY4.88%
SpS3.35
BVpS1.23
TBVpS0.15
PEG (NY)N/A
PEG (5Y)N/A
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
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 Turnover0.76
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 | -0.25 |
F-Score7
WACC8.26%
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-2.53%
EPS Next 2Y16.54%
EPS Next 3Y24.29%
EPS Next 5Y27.88%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%8.75%
Revenue Next Year9.41%
Revenue Next 2Y10.15%
Revenue Next 3Y10.6%
Revenue Next 5Y10.04%
EBIT growth 1Y42.96%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year161.62%
EBIT Next 3Y49.62%
EBIT Next 5Y34.57%
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