SNAP INC - A (SNAP)
US83304A1060 - Common Stock
SNAP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 68 industry peers in the Interactive Media & Services industry. Both the profitability and financial health of SNAP have multiple concerns. SNAP is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In multiple years SNAP reported negative operating cash flow during the last 5 years.
1.2 Ratios
SNAP has a worse Return On Assets (-16.60%) than 65.67% of its industry peers.
SNAP has a Return On Equity of -54.78%. This is in the lower half of the industry: SNAP underperforms 73.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.6% | ||
| ROE | -54.78% | ||
| ROIC | N/A |
ROA(3y)-13.63%
ROA(5y)-17.09%
ROE(3y)-41.02%
ROE(5y)-41.87%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of SNAP (54.10%) is comparable to the rest of the industry.
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 | 54.1% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.8%
GM growth 5Y10.85%
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
SNAP has more shares outstanding than it did 5 years ago.
SNAP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.46, we must say that SNAP is in the distress zone and has some risk of bankruptcy.
SNAP has a worse Altman-Z score (0.46) than 62.69% of its industry peers.
SNAP has a debt to FCF ratio of 107.76. This is a negative value and a sign of low solvency as SNAP would need 107.76 years to pay back of all of its debts.
The Debt to FCF ratio of SNAP (107.76) is comparable to the rest of the industry.
SNAP has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
SNAP has a worse Debt to Equity ratio (1.55) than 82.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 107.76 | ||
| Altman-Z | 0.46 |
ROIC/WACCN/A
WACC8.56%
2.3 Liquidity
A Current Ratio of 4.39 indicates that SNAP has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.39, SNAP is in the better half of the industry, outperforming 74.63% of the companies in the same industry.
A Quick Ratio of 4.39 indicates that SNAP has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.39, SNAP is in the better half of the industry, outperforming 74.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.39 | ||
| Quick Ratio | 4.39 |
3. Growth
3.1 Past
The earnings per share for SNAP have decreased strongly by -50.00% in the last year.
Looking at the last year, SNAP shows a small growth in Revenue. The Revenue has grown by 0.09% in the last year.
Measured over the past years, SNAP shows a very strong growth in Revenue. The Revenue has been growing by 31.30% on average per year.
EPS 1Y (TTM)-50%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-42.86%
Revenue 1Y (TTM)0.09%
Revenue growth 3Y22.48%
Revenue growth 5Y31.3%
Revenue growth Q2Q4.74%
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 66.82% 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 11.16% on average per year.
EPS Next Y91.86%
EPS Next 2Y104.4%
EPS Next 3Y80.54%
EPS Next 5Y66.82%
Revenue Next Year13.48%
Revenue Next 2Y13.88%
Revenue Next 3Y13.66%
Revenue Next 5Y11.16%
3.3 Evolution
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
A Price/Earnings ratio of 129.22 indicates a quite expensive valuation of SNAP.
Compared to the rest of the industry, the Price/Earnings ratio of SNAP is on the same level as its industry peers.
SNAP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.80.
The Price/Forward Earnings ratio is 67.35, which means the current valuation is very expensive for SNAP.
The rest of the industry has a similar Price/Forward Earnings ratio as SNAP.
When comparing the Price/Forward Earnings ratio of SNAP to the average of the S&P500 Index (21.27), we can say SNAP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 129.22 | ||
| Fwd PE | 67.35 |
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 | 551.73 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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 80.54% in the coming years.
PEG (NY)1.41
PEG (5Y)N/A
EPS Next 2Y104.4%
EPS Next 3Y80.54%
5. Dividend
5.1 Amount
No dividends for SNAP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SNAP INC - A
NYSE:SNAP (4/18/2024, 7:20:47 PM)
After market: 11.58 -0.05 (-0.43%)11.63
+0.73 (+6.7%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.20B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 129.22 | ||
| Fwd PE | 67.35 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.6% | ||
| ROE | -54.78% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 54.1% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.39 | ||
| Quick Ratio | 4.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-50%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y91.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.09%
Revenue growth 3Y22.48%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y