NYSE:PINS is not too expensive for the growth it is showing.

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 Metrics for NYSE:PINS

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:PINS was assigned a score of 8 for growth:

• 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.
• PINS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 41.29% yearly.
• PINS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.70%.
• 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.
• Based on estimates for the next years, PINS will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.43% on average per year.
• 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.

Analyzing Valuation Metrics

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:PINS was assigned a score of 5 for valuation:

• Compared to the rest of the industry, the Price/Earnings ratio of PINS indicates a somewhat cheap valuation: PINS is cheaper than 73.61% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 29.16, PINS is valued a bit cheaper.
• 70.83% of the companies in the same industry are more expensive than PINS, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 23.72, PINS is valued a bit cheaper.
• 68.06% of the companies in the same industry are more expensive than PINS, based on the Price/Free Cash Flow ratio.
• 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 26.72% in the coming years.

How do we evaluate the Health for NYSE:PINS?

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:PINS was assigned a score of 9 for health:

• An Altman-Z score of 22.83 indicates that PINS is not in any danger for bankruptcy at the moment.
• The Altman-Z score of PINS (22.83) is better than 95.83% of its industry peers.
• 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.
• The Current ratio of PINS (7.90) is better than 94.44% 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 94.44% of the companies in the same industry.

Profitability Analysis for NYSE:PINS

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:PINS scores a 5 out of 10:

• PINS's Return On Assets of 6.18% is amongst the best of the industry. PINS outperforms 83.33% of its industry peers.
• With a decent Return On Equity value of 7.46%, PINS is doing good in the industry, outperforming 79.17% of the companies in the same industry.
• PINS has a better Return On Invested Capital (2.93%) than 65.28% of its industry peers.
• With a decent Profit Margin value of 6.21%, PINS is doing good in the industry, outperforming 79.17% of the companies in the same industry.
• PINS has a better Operating Margin (3.30%) than 62.50% of its industry peers.
• PINS's Gross Margin of 78.94% is fine compared to the rest of the industry. PINS outperforms 69.44% 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.