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

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.

How do we evaluate the 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 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.
• 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 14.35% on average over the next years. This is quite good.

Deciphering NYSE:PINS's Valuation Rating

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:PINS, the assigned 5 reflects its valuation:

• 73.13% of the companies in the same industry are more expensive than PINS, based on the Price/Earnings ratio.
• PINS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.19.
• 68.66% of the companies in the same industry are more expensive than PINS, based on the Price/Forward Earnings ratio.
• PINS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.37.
• Based on the Price/Free Cash Flow ratio, PINS is valued a bit cheaper than the industry average as 65.67% of the companies are valued more expensively.
• The 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.

How do we evaluate the Health for NYSE:PINS?

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, 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 22.70. This indicates that PINS is financially healthy and has little risk of bankruptcy at the moment.
• PINS has a Altman-Z score of 22.70. This is amongst the best in the industry. PINS outperforms 94.03% 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.
• 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.
• The Current ratio of PINS (7.90) is better than 94.03% of its industry peers.
• A Quick Ratio of 7.90 indicates that PINS has no problem at all paying its short term obligations.
• PINS's Quick ratio of 7.90 is amongst the best of the industry. PINS outperforms 94.03% of its industry peers.

Analyzing Profitability Metrics

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:

• With an excellent Return On Assets value of 6.18%, PINS belongs to the best of the industry, outperforming 82.09% of the companies in the same industry.
• PINS has a better Return On Equity (7.46%) than 77.61% of its industry peers.
• PINS's Return On Invested Capital of 2.93% is fine compared to the rest of the industry. PINS outperforms 62.69% of its industry peers.
• PINS's Profit Margin of 6.21% is fine compared to the rest of the industry. PINS outperforms 77.61% of its industry peers.
• PINS has a Operating Margin of 3.30%. This is in the better half of the industry: PINS outperforms 61.19% of its industry peers.
• With a decent Gross Margin value of 78.94%, PINS is doing good in the industry, outperforming 70.15% of the companies in the same industry.
• PINS's Gross Margin has improved in the last couple of years.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of PINS

Keep in mind

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.