NYSE:PINS stands out as a growth opportunity that won't break the bank.

Our stock screening tool has pinpointed PINTEREST INC- CLASS A (NYSE:PINS) as a growth stock that isn't overvalued. NYSE:PINS is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Understanding NYSE:PINS's Growth

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 65.12% over the past year.
• 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%.
• The Revenue has been growing by 32.22% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, PINS will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.12% on average per year.
• The Revenue is expected to grow by 14.36% on average over the next years. This is quite good.

Evaluating Valuation: NYSE:PINS

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:PINS has achieved a 5 out of 10:

• 71.21% of the companies in the same industry are more expensive than PINS, based on the Price/Earnings ratio.
• When comparing the Price/Earnings ratio of PINS to the average of the S&P500 Index (27.17), we can say PINS is valued slightly cheaper.
• PINS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PINS is cheaper than 68.18% 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 23.59.
• 66.67% 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 26.79% in the coming years. This may justify a more expensive valuation.

Health Examination for NYSE:PINS

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:

• PINS has an Altman-Z score of 20.91. This indicates that PINS is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 20.91, PINS belongs to the best of the industry, outperforming 95.45% 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.
• PINS has a Current Ratio of 7.90. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
• PINS has a Current ratio of 7.90. This is amongst the best in the industry. PINS outperforms 95.45% 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 95.45% of the companies in the same industry.

How do we evaluate the Profitability 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:

• Looking at the Return On Assets, with a value of 6.18%, PINS belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 7.46%, PINS is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
• The Return On Invested Capital of PINS (2.93%) is better than 62.12% of its industry peers.
• With a decent Profit Margin value of 6.21%, PINS is doing good in the industry, outperforming 77.27% of the companies in the same industry.
• PINS's Gross Margin of 78.94% is fine compared to the rest of the industry. PINS outperforms 69.70% of its industry peers.
• 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

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.