NYSE:PINS is showing decent growth, but is still valued reasonably.

PINTEREST INC- CLASS A (NYSE:PINS) was identified as an affordable growth stock by our stock screener. NYSE:PINS is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Assessing Growth for NYSE:PINS

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:PINS has earned a 8 for growth:

• PINS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 88.41%, which is quite impressive.
• Measured over the past years, PINS shows a very strong growth in Earnings Per Share. The EPS has been growing by 41.29% on average per year.
• The Revenue has grown by 16.21% in the past year. This is quite good.
• PINS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 32.22% yearly.
• PINS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.43% yearly.
• Based on estimates for the next years, PINS will show a quite strong growth in Revenue. The Revenue will grow by 15.56% on average per year.

Unpacking NYSE:PINS's Valuation Rating

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:PINS, the assigned 5 reflects its valuation:

• PINS's Price/Earnings ratio is a bit cheaper when compared to the industry. PINS is cheaper than 68.12% of the companies in the same industry.
• Based on the Price/Forward Earnings ratio, PINS is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
• PINS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PINS is cheaper than 69.57% of the companies in the same industry.
• PINS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• A more expensive valuation may be justified as PINS's earnings are expected to grow with 28.31% in the coming years.

Looking at the Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:PINS scores a 9 out of 10:

• An Altman-Z score of 24.49 indicates that PINS is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 24.49, PINS belongs to the best of the industry, outperforming 97.10% of the companies in the same industry.
• PINS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• PINS has a Current Ratio of 9.50. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 9.50, PINS belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
• A Quick Ratio of 9.50 indicates that PINS has no problem at all paying its short term obligations.
• PINS's Quick ratio of 9.50 is amongst the best of the industry. PINS outperforms 95.65% of its industry peers.

Profitability Insights: NYSE:PINS

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:PINS was assigned a score of 5 for profitability:

• With a decent Return On Assets value of 5.12%, PINS is doing good in the industry, outperforming 76.81% of the companies in the same industry.
• PINS's Return On Equity of 6.00% is fine compared to the rest of the industry. PINS outperforms 72.46% of its industry peers.
• PINS's Return On Invested Capital of 2.70% is fine compared to the rest of the industry. PINS outperforms 66.67% of its industry peers.
• Looking at the Profit Margin, with a value of 5.75%, PINS is in the better half of the industry, outperforming 71.01% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 3.46%, PINS is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
• PINS has a Gross Margin of 78.58%. This is in the better half of the industry: PINS outperforms 71.01% of its industry peers.
• PINS's Gross Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Our latest full fundamental report of PINS contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.