SNAP INC - A (SNAP) Stock Fundamental Analysis
NYSE:SNAP - US83304A1060 - Common Stock
7.31 USD
+0.22 (+3.1%)
7.26 USD
-0.05 (-0.68%)
SNAP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 69 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 shows excellent growth, but is valued quite expensive already.
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.
SNAP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SNAP's Return On Assets of -7.38% is on the low side compared to the rest of the industry. SNAP is outperformed by 65.22% of its industry peers.
With a Return On Equity value of -26.40%, SNAP is not doing good in the industry: 62.32% of the companies in the same industry are doing better.
| 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 has a Gross Margin of 53.82%. This is comparable to the rest of the industry: SNAP outperforms 42.03% of its industry peers.
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 | 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.
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 -0.20, we must say that SNAP is in the distress zone and has some risk of bankruptcy.
SNAP has a worse Altman-Z score (-0.20) than 68.12% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 9.11, SNAP is in line with its industry, outperforming 55.07% of the companies in the same industry.
SNAP has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.73, SNAP is not doing good in the industry: 82.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | -0.2 |
ROIC/WACCN/A
WACC8.14%
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.
SNAP's Current ratio of 3.88 is amongst the best of the industry. SNAP outperforms 81.16% of its industry peers.
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 amongst the best of the industry. SNAP outperforms 81.16% 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
Looking at the last year, SNAP shows a quite strong growth in Revenue. The Revenue has grown by 13.18% in the last year.
SNAP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.60% yearly.
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
SNAP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.47% yearly.
Based on estimates for the next years, SNAP will show a quite strong growth in Revenue. The Revenue will grow by 9.66% on average per year.
EPS Next Y-7.33%
EPS Next 2Y13.23%
EPS Next 3Y23.82%
EPS Next 5Y26.47%
Revenue Next Year10.09%
Revenue Next 2Y10.42%
Revenue Next 3Y10.6%
Revenue Next 5Y9.66%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.58, which indicates a rather expensive current valuation of SNAP.
Based on the Price/Earnings ratio, SNAP is valued a bit cheaper than 62.32% of the companies in the same industry.
When comparing the Price/Earnings ratio of SNAP to the average of the S&P500 Index (27.06), we can say SNAP is valued inline with the index average.
A Price/Forward Earnings ratio of 19.66 indicates a rather expensive valuation of SNAP.
SNAP's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of SNAP to the average of the S&P500 Index (22.69), we can say SNAP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.58 | ||
| Fwd PE | 19.66 |
4.2 Price Multiples
SNAP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.48 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SNAP's earnings are expected to grow with 23.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.23%
EPS Next 3Y23.82%
5. Dividend
5.1 Amount
SNAP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.31
+0.22 (+3.1%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners62.96%
Inst Owner Change-5.15%
Ins Owners8.07%
Ins Owner Change-5.58%
Market Cap12.35B
Analysts64.8
Price Target9.6 (31.33%)
Short Float %10.47%
Short Ratio2.42
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)-4.71%
PT rev (3m)-1.93%
EPS NQ rev (1m)15.03%
EPS NQ rev (3m)-41.81%
EPS NY rev (1m)-4.93%
EPS NY rev (3m)7.44%
Revenue NQ rev (1m)1.13%
Revenue NQ rev (3m)-4.4%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.58 | ||
| Fwd PE | 19.66 | ||
| P/S | 2.19 | ||
| P/FCF | 31.48 | ||
| P/OCF | 21.06 | ||
| P/B | 5.97 | ||
| P/tB | 47.56 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.31
EY4.24%
EPS(NY)0.37
Fwd EY5.09%
FCF(TTM)0.23
FCFY3.18%
OCF(TTM)0.35
OCFY4.75%
SpS3.34
BVpS1.22
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 | -0.2 |
F-Score7
WACC8.14%
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-7.33%
EPS Next 2Y13.23%
EPS Next 3Y23.82%
EPS Next 5Y26.47%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%8.75%
Revenue Next Year10.09%
Revenue Next 2Y10.42%
Revenue Next 3Y10.6%
Revenue Next 5Y9.66%
EBIT growth 1Y42.96%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year161.62%
EBIT Next 3Y49.62%
EBIT Next 5Y33.83%
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