Despite its growth, NYSE:PINS remains within the realm of affordability.

Consider PINTEREST INC- CLASS A (NYSE:PINS) as an affordable growth stock, identified by our stock screening tool. NYSE:PINS is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Evaluating Growth: NYSE:PINS

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:PINS, the assigned 8 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 88.41% over the past year.
• 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.
• PINS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.21%.
• The Revenue has been growing by 32.22% on average over the past years. This is a very strong growth!
• 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.

Valuation Analysis for NYSE:PINS

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:PINS has earned a 5 for valuation:

• 69.57% of the companies in the same industry are more expensive than PINS, based on the Price/Earnings ratio.
• Compared to an average S&P500 Price/Earnings ratio of 30.52, PINS is valued a bit cheaper.
• 68.12% of the companies in the same industry are more expensive than PINS, based on the Price/Forward Earnings ratio.
• PINS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.99, which is the current average of the S&P500 Index.
• 69.57% of the companies in the same industry are more expensive than PINS, based on the Price/Free Cash Flow ratio.
• 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 26.51% in the coming years.

Understanding NYSE:PINS's Health Score

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:PINS has earned a 9 out of 10:

• PINS has an Altman-Z score of 22.81. This indicates that PINS is financially healthy and has little risk of bankruptcy at the moment.
• PINS has a better Altman-Z score (22.81) than 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.
• 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.
• 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.
• The Quick ratio of PINS (9.50) is better than 95.65% of its industry peers.

A Closer Look at Profitability for NYSE:PINS

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:PINS, the assigned 5 is a significant indicator of profitability:

• PINS has a better Return On Assets (5.12%) than 81.16% of its industry peers.
• PINS's Return On Equity of 6.00% is fine compared to the rest of the industry. PINS outperforms 76.81% of its industry peers.
• The Return On Invested Capital of PINS (2.70%) is better than 66.67% of its industry peers.
• PINS has a better Profit Margin (5.75%) than 75.36% of its industry peers.
• PINS's Operating Margin of 3.46% is fine compared to the rest of the industry. PINS outperforms 65.22% of its industry peers.
• PINS's Gross Margin of 78.58% is fine compared to the rest 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.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.