SNAP INC - A (SNAP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SNAP - US83304A1060 - Common Stock
8.62 USD
-0.17 (-1.93%)
8.61 USD
-0.01 (-0.12%)
SNAP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 not overvalued while it is showing excellent growth. This is an interesting combination.
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.
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 -6.55%, SNAP is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
SNAP has a Return On Equity of -22.30%. This is in the lower half of the industry: SNAP underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.55% | ||
| ROE | -22.3% | ||
| 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 (54.28%) is comparable to the rest of the industry.
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 | 54.29% |
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.
SNAP has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.14, we must say that SNAP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SNAP (0.14) is worse than 61.43% of its industry peers.
SNAP has a debt to FCF ratio of 8.55. This is a slightly negative value and a sign of low solvency as SNAP would need 8.55 years to pay back of all of its debts.
The Debt to FCF ratio of SNAP (8.55) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.57 is on the high side and indicates that SNAP has dependencies on debt financing.
SNAP has a Debt to Equity ratio of 1.57. This is in the lower half of the industry: SNAP underperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 8.55 | ||
| Altman-Z | 0.14 |
ROIC/WACCN/A
WACC7.1%
2.3 Liquidity
SNAP has a Current Ratio of 3.67. This indicates that SNAP is financially healthy and has no problem in meeting its short term obligations.
SNAP's Current ratio of 3.67 is amongst the best of the industry. SNAP outperforms 81.43% of its industry peers.
A Quick Ratio of 3.67 indicates that SNAP has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.67, SNAP belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.67 | ||
| Quick Ratio | 3.67 |
3. Growth
3.1 Past
SNAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.67%, which is quite impressive.
The earnings per share for SNAP have been decreasing by -16.04% on average. This is quite bad
SNAP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.75%.
The Revenue has been growing by 25.60% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)56.67%
EPS 3Y-16.04%
EPS 5YN/A
EPS Q2Q%25%
Revenue 1Y (TTM)11.75%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%9.78%
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 24.43% 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 9.52% on average per year.
EPS Next Y11.14%
EPS Next 2Y30.68%
EPS Next 3Y29.4%
EPS Next 5Y24.43%
Revenue Next Year10.51%
Revenue Next 2Y12.6%
Revenue Next 3Y11.3%
Revenue Next 5Y9.52%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.12, SNAP can be considered very expensive at the moment.
SNAP's Price/Earnings ratio is a bit cheaper when compared to the industry. SNAP is cheaper than 62.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of SNAP to the average of the S&P500 Index (26.92), we can say SNAP is valued inline with the index average.
SNAP is valuated rather expensively with a Price/Forward Earnings ratio of 17.41.
Based on the Price/Forward Earnings ratio, SNAP is valued a bit cheaper than the industry average as 61.43% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.57. SNAP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.12 | ||
| Fwd PE | 17.41 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SNAP is valued a bit cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.8 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SNAP does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as SNAP's earnings are expected to grow with 29.40% in the coming years.
PEG (NY)2.34
PEG (5Y)N/A
EPS Next 2Y30.68%
EPS Next 3Y29.4%
5. Dividend
5.1 Amount
No dividends for SNAP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
8.62
-0.17 (-1.93%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners52.35%
Inst Owner Change0%
Ins Owners7.39%
Ins Owner Change-4.66%
Market Cap14.82B
Revenue(TTM)5.77B
Net Income(TTM)-496.60M
Analysts64
Price Target10.03 (16.36%)
Short Float %6.68%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-11.78%
Min EPS beat(2)-107.59%
Max EPS beat(2)84.04%
EPS beat(4)3
Avg EPS beat(4)25.38%
Min EPS beat(4)-107.59%
Max EPS beat(4)111.94%
EPS beat(8)7
Avg EPS beat(8)43.56%
EPS beat(12)11
Avg EPS beat(12)69.03%
EPS beat(16)13
Avg EPS beat(16)74.09%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-2.12%
Max Revenue beat(4)-0.71%
Revenue beat(8)1
Avg Revenue beat(8)-0.92%
Revenue beat(12)2
Avg Revenue beat(12)-0.77%
Revenue beat(16)3
Avg Revenue beat(16)-0.84%
PT rev (1m)0.68%
PT rev (3m)5.73%
EPS NQ rev (1m)-2.03%
EPS NQ rev (3m)9.58%
EPS NY rev (1m)-1%
EPS NY rev (3m)20.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.12 | ||
| Fwd PE | 17.41 | ||
| P/S | 2.57 | ||
| P/FCF | 35.8 | ||
| P/OCF | 24.01 | ||
| P/B | 6.65 | ||
| P/tB | 34.51 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.33
EY3.83%
EPS(NY)0.5
Fwd EY5.75%
FCF(TTM)0.24
FCFY2.79%
OCF(TTM)0.36
OCFY4.16%
SpS3.36
BVpS1.3
TBVpS0.25
PEG (NY)2.34
PEG (5Y)N/A
Graham Number3.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.55% | ||
| ROE | -22.3% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 54.29% | ||
| FCFM | 7.17% |
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 | 1.57 | ||
| Debt/FCF | 8.55 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 127.15% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.67 | ||
| Quick Ratio | 3.67 | ||
| Altman-Z | 0.14 |
F-Score7
WACC7.1%
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)56.67%
EPS 3Y-16.04%
EPS 5YN/A
EPS Q2Q%25%
EPS Next Y11.14%
EPS Next 2Y30.68%
EPS Next 3Y29.4%
EPS Next 5Y24.43%
Revenue 1Y (TTM)11.75%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%9.78%
Revenue Next Year10.51%
Revenue Next 2Y12.6%
Revenue Next 3Y11.3%
Revenue Next 5Y9.52%
EBIT growth 1Y35.17%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year173.95%
EBIT Next 3Y51.27%
EBIT Next 5Y32.46%
FCF growth 1Y17860.6%
FCF growth 3Y-0.65%
FCF growth 5YN/A
OCF growth 1Y197.83%
OCF growth 3Y12.18%
OCF growth 5YN/A
SNAP INC - A / SNAP FAQ
What is the fundamental rating for SNAP stock?
ChartMill assigns a fundamental rating of 4 / 10 to SNAP.
What is the valuation status for SNAP stock?
ChartMill assigns a valuation rating of 4 / 10 to SNAP INC - A (SNAP). This can be considered as Fairly Valued.
How profitable is SNAP INC - A (SNAP) stock?
SNAP INC - A (SNAP) has a profitability rating of 2 / 10.
What is the valuation of SNAP INC - A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SNAP INC - A (SNAP) is 26.12 and the Price/Book (PB) ratio is 6.65.
How financially healthy is SNAP INC - A?
The financial health rating of SNAP INC - A (SNAP) is 4 / 10.