Investors should take note of NYSE:PINS, a growth stock that remains attractively priced.

Uncover the potential of PINTEREST INC- CLASS A (NYSE:PINS), a growth stock that our stock screener found to be reasonably priced. NYSE:PINS is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

How We Gauge Growth for 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:

• 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.
• PINS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 41.29% yearly.
• Looking at the last year, PINS shows a quite strong growth in Revenue. The Revenue has grown by 16.21% in the last year.
• 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.

Looking at the Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:PINS scores a 5 out of 10:

• Based on the Price/Earnings ratio, PINS is valued a bit cheaper than 65.71% of the companies in the same industry.
• PINS is valuated rather cheaply when we compare the Price/Earnings ratio to 31.09, which is the current average of the S&P500 Index.
• PINS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PINS is cheaper than 68.57% of the companies in the same industry.
• PINS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.57.
• 70.00% 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.
• PINS's earnings are expected to grow with 26.51% in the coming years. This may justify a more expensive valuation.

How We Gauge Health for NYSE:PINS

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:PINS has received a 9 out of 10:

• An Altman-Z score of 25.36 indicates that PINS is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 25.36, PINS belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
• There is no outstanding debt for PINS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• A Current Ratio of 9.50 indicates that PINS has no problem at all paying its short term obligations.
• PINS's Current ratio of 9.50 is amongst the best of the industry. PINS outperforms 95.71% of its industry peers.
• A Quick Ratio of 9.50 indicates that PINS has no problem at all paying its short term obligations.
• The Quick ratio of PINS (9.50) is better than 95.71% of its industry peers.

Looking at the Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:PINS, the assigned 5 is noteworthy for profitability:

• The Return On Assets of PINS (5.12%) is better than 81.43% of its industry peers.
• The Return On Equity of PINS (6.00%) is better than 78.57% of its industry peers.
• PINS has a Return On Invested Capital of 2.70%. This is in the better half of the industry: PINS outperforms 67.14% of its industry peers.
• With a decent Profit Margin value of 5.75%, PINS is doing good in the industry, outperforming 75.71% of the companies in the same industry.
• PINS has a Operating Margin of 3.46%. This is in the better half of the industry: PINS outperforms 65.71% of its industry peers.
• PINS has a Gross Margin of 78.58%. This is in the better half of the industry: PINS outperforms 68.57% of its industry peers.
• PINS's Gross Margin has improved in the last couple of years.

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

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.