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 not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year SNAP was profitable.
SNAP had a positive operating cash flow in the past year.
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 -8.79%. This is comparable to the rest of the industry: SNAP outperforms 42.86% of its industry peers.
Looking at the Return On Equity, with a value of -28.48%, SNAP is in line with its industry, outperforming 41.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.79% | ||
| ROE | -28.48% | ||
| 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 of 53.87%. This is comparable to the rest of the industry: SNAP outperforms 42.86% of its industry peers.
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 | 53.87% |
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.
Compared to 5 years ago, SNAP has more shares outstanding
Compared to 1 year ago, SNAP has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.37, we must say that SNAP is in the distress zone and has some risk of bankruptcy.
SNAP has a Altman-Z score of 0.37. This is in the lower half of the industry: SNAP underperforms 62.86% of its industry peers.
The Debt to FCF ratio of SNAP is 16.67, which is on the high side as it means it would take SNAP, 16.67 years of fcf income to pay off all of its debts.
SNAP has a Debt to FCF ratio of 16.67. This is comparable to the rest of the industry: SNAP outperforms 50.00% of its industry peers.
SNAP has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.47, SNAP is not doing good in the industry: 72.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 16.67 | ||
| Altman-Z | 0.37 |
ROIC/WACCN/A
WACC7.82%
2.3 Liquidity
SNAP has a Current Ratio of 3.95. 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 3.95, SNAP belongs to the top of the industry, outperforming 81.43% of the companies in the same industry.
SNAP has a Quick Ratio of 3.95. This indicates that SNAP is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SNAP (3.95) is better than 81.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.95 | ||
| Quick Ratio | 3.95 |
3. Growth
3.1 Past
SNAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 172.73%, 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 16.40%.
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)172.73%
EPS 3Y-16.04%
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)16.4%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%14.1%
3.2 Future
SNAP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.09% yearly.
The Revenue is expected to grow by 11.17% on average over the next years. This is quite good.
EPS Next Y19.41%
EPS Next 2Y32.11%
EPS Next 3Y34.69%
EPS Next 5Y32.09%
Revenue Next Year11.96%
Revenue Next 2Y11.87%
Revenue Next 3Y11.62%
Revenue Next 5Y11.17%
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.
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 25.87, 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.
When comparing the Price/Earnings ratio of SNAP to the average of the S&P500 Index (28.98), we can say SNAP is valued inline with the index average.
With a Price/Forward Earnings ratio of 15.33, SNAP is valued correctly.
SNAP's Price/Forward Earnings is on the same level as the industry average.
SNAP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.87 | ||
| Fwd PE | 15.33 |
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 | 60.2 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SNAP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as SNAP's earnings are expected to grow with 34.69% in the coming years.
PEG (NY)1.33
PEG (5Y)N/A
EPS Next 2Y32.11%
EPS Next 3Y34.69%
5. Dividend
5.1 Amount
SNAP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:SNAP (4/30/2025, 2:40:10 PM)
7.76
-1.33 (-14.63%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners59.13%
Inst Owner Change0.26%
Ins Owners7.86%
Ins Owner Change1.09%
Market Cap13.16B
Analysts65.2
Price Target11.68 (50.52%)
Short Float %7.42%
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)36.22%
Min EPS beat(2)13.12%
Max EPS beat(2)59.32%
EPS beat(4)4
Avg EPS beat(4)58.81%
Min EPS beat(4)0.45%
Max EPS beat(4)162.34%
EPS beat(8)8
Avg EPS beat(8)89.91%
EPS beat(12)10
Avg EPS beat(12)82.59%
EPS beat(16)14
Avg EPS beat(16)162.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.11%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)-0.9%
Revenue beat(4)1
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)4.62%
Revenue beat(8)2
Avg Revenue beat(8)-0.39%
Revenue beat(12)2
Avg Revenue beat(12)-1.3%
Revenue beat(16)5
Avg Revenue beat(16)0.04%
PT rev (1m)-10.87%
PT rev (3m)-11.48%
EPS NQ rev (1m)-2.81%
EPS NQ rev (3m)-24.51%
EPS NY rev (1m)-4.05%
EPS NY rev (3m)-18.69%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)-1.64%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.87 | ||
| Fwd PE | 15.33 | ||
| P/S | 2.46 | ||
| P/FCF | 60.2 | ||
| P/OCF | 31.84 | ||
| P/B | 5.37 | ||
| P/tB | 19.51 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.3
EY3.87%
EPS(NY)0.51
Fwd EY6.52%
FCF(TTM)0.13
FCFY1.66%
OCF(TTM)0.24
OCFY3.14%
SpS3.16
BVpS1.44
TBVpS0.4
PEG (NY)1.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.79% | ||
| ROE | -28.48% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 53.87% | ||
| FCFM | 4.08% |
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-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 16.67 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 123.25% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.95 | ||
| Quick Ratio | 3.95 | ||
| Altman-Z | 0.37 |
F-Score6
WACC7.82%
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)172.73%
EPS 3Y-16.04%
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y19.41%
EPS Next 2Y32.11%
EPS Next 3Y34.69%
EPS Next 5Y32.09%
Revenue 1Y (TTM)16.4%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%14.1%
Revenue Next Year11.96%
Revenue Next 2Y11.87%
Revenue Next 3Y11.62%
Revenue Next 5Y11.17%
EBIT growth 1Y48.72%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year177.85%
EBIT Next 3Y54.25%
EBIT Next 5Y36.38%
FCF growth 1Y528.42%
FCF growth 3Y-0.65%
FCF growth 5YN/A
OCF growth 1Y67.73%
OCF growth 3Y12.18%
OCF growth 5YN/A