Despite its growth, PINTEREST INC- CLASS A (NYSE:PINS) remains within the realm of affordability.

Discover PINTEREST INC- CLASS A (NYSE:PINS), an undervalued growth gem identified by our stock screener. NYSE:PINS is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

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:

• The Earnings Per Share has grown by an impressive 31.82% over the past year.
• PINS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.67% yearly.
• PINS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.35%.
• Measured over the past years, PINS shows a very strong growth in Revenue. The Revenue has been growing by 26.12% 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 14.11% 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 12.31% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Examination for NYSE:PINS

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:

• Compared to the rest of the industry, the Price/Earnings ratio of PINS indicates a somewhat cheap valuation: PINS is cheaper than 64.79% of the companies listed in the same industry.
• 66.20% of the companies in the same industry are more expensive than PINS, based on the Price/Forward Earnings ratio.
• PINS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PINS is cheaper than 66.20% of the companies in the same industry.
• PINS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• PINS has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as PINS's earnings are expected to grow with 22.83% in the coming years.

Assessing Health for NYSE:PINS

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, 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 25.15. This indicates that PINS is financially healthy and has little risk of bankruptcy at the moment.
• PINS has a Altman-Z score of 25.15. This is amongst the best in the industry. PINS outperforms 95.77% 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.
• A Current Ratio of 8.75 indicates that PINS has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 8.75, PINS belongs to the top of the industry, outperforming 94.37% of the companies in the same industry.
• A Quick Ratio of 8.75 indicates that PINS has no problem at all paying its short term obligations.
• With an excellent Quick ratio value of 8.75, PINS belongs to the best of the industry, outperforming 94.37% of the companies in the same industry.

Profitability Insights: NYSE:PINS

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:PINS has earned a 7 out of 10:

• PINS has a Return On Assets of 34.85%. This is amongst the best in the industry. PINS outperforms 100.00% of its industry peers.
• PINS has a better Return On Equity (39.19%) than 98.59% of its industry peers.
• PINS's Return On Invested Capital of 2.87% is fine compared to the rest of the industry. PINS outperforms 66.20% of its industry peers.
• PINS has a better Profit Margin (51.07%) than 98.59% of its industry peers.
• In the last couple of years the Profit Margin of PINS has grown nicely.
• PINS has a Operating Margin of 4.93%. This is in the better half of the industry: PINS outperforms 64.79% of its industry peers.
• Looking at the Gross Margin, with a value of 79.42%, PINS is in the better half of the industry, outperforming 73.24% 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.

Our latest full fundamental report of PINS contains the most current fundamental analsysis.

Disclaimer

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.