NYSE:PINS is showing good growth, while it is not too expensive.

Our stock screener has spotted PINTEREST INC- CLASS A (NYSE:PINS) as a growth stock which is not overvalued. NYSE:PINS is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Assessing Growth Metrics 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.
• The Earnings Per Share has been growing by 41.29% on average over the past years. This is a very strong growth
• Looking at the last year, PINS shows a quite strong growth in Revenue. The Revenue has grown by 16.21% in the last year.
• Measured over the past years, PINS shows a very strong growth in Revenue. The Revenue has been growing by 32.22% on average per year.
• 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.
• The Revenue is expected to grow by 15.56% on average over the next years. This is quite good.

Analyzing Valuation Metrics

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:PINS boasts a 5 out of 10:

• 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.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of PINS indicates a somewhat cheap valuation: PINS is cheaper than 68.12% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, PINS is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
• 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.

Understanding NYSE:PINS's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:PINS has earned a 9 out of 10:

• An Altman-Z score of 25.07 indicates that PINS is not in any danger for bankruptcy at the moment.
• PINS has a Altman-Z score of 25.07. This is amongst the best in the industry. PINS outperforms 98.55% of its industry peers.
• PINS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• A Current Ratio of 9.50 indicates that PINS has no problem at all paying its short term obligations.
• PINS has a Current ratio of 9.50. This is amongst the best in the industry. PINS outperforms 95.65% of its industry peers.
• PINS has a Quick Ratio of 9.50. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Quick ratio value of 9.50, PINS belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.

Profitability Examination for NYSE:PINS

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:PINS has achieved a 5:

• PINS's Return On Assets of 5.12% is amongst the best of the industry. PINS outperforms 81.16% of its industry peers.
• The Return On Equity of PINS (6.00%) is better than 76.81% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 2.70%, PINS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
• PINS has a Profit Margin of 5.75%. This is in the better half of the industry: PINS outperforms 75.36% of its industry peers.
• PINS has a Operating Margin of 3.46%. This is in the better half of the industry: PINS outperforms 65.22% of its industry peers.
• PINS has a Gross Margin of 78.58%. This is in the better half of the industry: PINS outperforms 68.12% of its industry peers.
• In the last couple of years the Gross Margin of PINS has grown nicely.

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

For an up to date full fundamental analysis you can check the fundamental report of PINS

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.