While growth is established for NYSE:PINS, the stock's valuation remains reasonable.

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.

Growth Analysis for NYSE:PINS

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:PINS has received a 8 out of 10:

• PINS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.12%, 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 17.70% in the past year. This is quite good.
• 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.

Valuation Assessment of 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:

• 73.24% of the companies in the same industry are more expensive than PINS, based on the Price/Earnings ratio.
• The average S&P500 Price/Earnings ratio is at 28.58. PINS is valued slightly cheaper when compared to this.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of PINS indicates a somewhat cheap valuation: PINS is cheaper than 70.42% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 23.52, PINS is valued a bit cheaper.
• PINS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PINS is cheaper than 67.61% of the companies in the same industry.
• The 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 26.53% in the coming years.

Deciphering NYSE:PINS's Health Rating

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:PINS, the assigned 9 reflects its health status:

• An Altman-Z score of 21.37 indicates that PINS is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 21.37, PINS belongs to the top of the industry, outperforming 97.18% 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 7.90 indicates that PINS has no problem at all paying its short term obligations.
• PINS has a better Current ratio (7.90) than 94.37% of its industry peers.
• A Quick Ratio of 7.90 indicates that PINS has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 7.90, PINS belongs to the top of the industry, outperforming 94.37% of the companies in the same industry.

Evaluating Profitability: 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 (6.18%) than 83.10% of its industry peers.
• Looking at the Return On Equity, with a value of 7.46%, PINS is in the better half of the industry, outperforming 78.87% of the companies in the same industry.
• With a decent Return On Invested Capital value of 2.93%, PINS is doing good in the industry, outperforming 64.79% of the companies in the same industry.
• PINS has a better Profit Margin (6.21%) than 77.46% of its industry peers.
• PINS has a Operating Margin of 3.30%. This is in the better half of the industry: PINS outperforms 61.97% of its industry peers.
• Looking at the Gross Margin, with a value of 78.94%, PINS is in the better half of the industry, outperforming 70.42% of the companies in the same industry.
• PINS's Gross Margin has improved in the last couple of years.

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.