SNAP INC - A (SNAP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SNAP - US83304A1060 - Common Stock
7.94 USD
+0.37 (+4.89%)
7.91 USD
-0.03 (-0.38%)
Taking everything into account, SNAP scores 4 out of 10 in our fundamental rating. SNAP was compared to 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 growing strongly while it is still valued neutral. This is a good 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.
Of the past 5 years SNAP 4 years had a positive operating cash flow.
1.2 Ratios
SNAP has a Return On Assets of -6.55%. This is in the lower half of the industry: SNAP underperforms 61.43% of its industry peers.
SNAP's Return On Equity of -22.30% 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 | -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
SNAP has a Gross Margin (54.28%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SNAP has grown nicely.
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.
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
SNAP has an Altman-Z score of 0.00. 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 0.00, SNAP is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
The Debt to FCF ratio of SNAP is 8.55, which is on the high side as it means it would take SNAP, 8.55 years of fcf income to pay off all of its debts.
SNAP's Debt to FCF ratio of 8.55 is in line compared to the rest of the industry. SNAP outperforms 60.00% of its industry peers.
SNAP has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
SNAP has a Debt to Equity ratio of 1.57. This is amonst the worse of the industry: SNAP underperforms 81.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 8.55 | ||
| Altman-Z | 0 |
ROIC/WACCN/A
WACC9.38%
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 has a Current ratio of 3.67. This is in the better half of the industry: SNAP outperforms 80.00% of its industry peers.
A Quick Ratio of 3.67 indicates that SNAP has no problem at all paying its short term obligations.
SNAP's Quick ratio of 3.67 is fine compared to the rest of the industry. SNAP outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.67 | ||
| Quick Ratio | 3.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 56.67% 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.
The Revenue has grown by 11.75% 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)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.
SNAP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.52% yearly.
EPS Next Y12.27%
EPS Next 2Y31.73%
EPS Next 3Y30.25%
EPS Next 5Y24.43%
Revenue Next Year10.51%
Revenue Next 2Y12.49%
Revenue Next 3Y11.2%
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 24.06, SNAP is valued on the expensive side.
61.43% of the companies in the same industry are more expensive than SNAP, based on the Price/Earnings ratio.
SNAP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.78 indicates a correct valuation of SNAP.
62.86% of the companies in the same industry are more expensive than SNAP, based on the Price/Forward Earnings ratio.
SNAP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.06 | ||
| Fwd PE | 15.78 |
4.2 Price Multiples
SNAP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SNAP is cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.98 | ||
| 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.
SNAP's earnings are expected to grow with 30.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.96
PEG (5Y)N/A
EPS Next 2Y31.73%
EPS Next 3Y30.25%
5. Dividend
5.1 Amount
SNAP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
7.94
+0.37 (+4.89%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners52.73%
Inst Owner Change-12.77%
Ins Owners7.48%
Ins Owner Change-3.01%
Market Cap13.65B
Revenue(TTM)5.77B
Net Income(TTM)-496.60M
Analysts64
Price Target10.02 (26.2%)
Short Float %6.53%
Short Ratio1.39
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)6.01%
PT rev (3m)4.41%
EPS NQ rev (1m)3.6%
EPS NQ rev (3m)9.58%
EPS NY rev (1m)23.24%
EPS NY rev (3m)21.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.06 | ||
| Fwd PE | 15.78 | ||
| P/S | 2.37 | ||
| P/FCF | 32.98 | ||
| P/OCF | 22.12 | ||
| P/B | 6.13 | ||
| P/tB | 31.78 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.33
EY4.16%
EPS(NY)0.5
Fwd EY6.34%
FCF(TTM)0.24
FCFY3.03%
OCF(TTM)0.36
OCFY4.52%
SpS3.36
BVpS1.3
TBVpS0.25
PEG (NY)1.96
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 |
F-Score7
WACC9.38%
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 Y12.27%
EPS Next 2Y31.73%
EPS Next 3Y30.25%
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 2Y12.49%
Revenue Next 3Y11.2%
Revenue Next 5Y9.52%
EBIT growth 1Y35.17%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year174.05%
EBIT Next 3Y51.29%
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 of SNAP INC - A (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 24.06 and the Price/Book (PB) ratio is 6.13.