SNAP INC - A (1SNAP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SNAP - US83304A1060 - Common Stock
6.278 EUR
-1.14 (-15.32%)
Taking everything into account, 1SNAP scores 4 out of 10 in our fundamental rating. 1SNAP was compared to 19 industry peers in the Interactive Media & Services industry. 1SNAP scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 1SNAP is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- 1SNAP had positive earnings in the past year.
- In the past year 1SNAP had a positive cash flow from operations.
- 1SNAP had negative earnings in each of the past 5 years.
- 1SNAP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- 1SNAP has a Return On Assets of -6.55%. This is in the lower half of the industry: 1SNAP underperforms 73.68% of its industry peers.
- 1SNAP has a Return On Equity of -22.30%. This is in the lower half of the industry: 1SNAP underperforms 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.55% | ||
| ROE | -22.3% | ||
| ROIC | N/A |
ROA(3y)-14.4%
ROA(5y)-13.7%
ROE(3y)-46.22%
ROE(5y)-38.42%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Gross Margin of 1SNAP (54.28%) is worse than 68.42% of its industry peers.
- In the last couple of years the Gross Margin of 1SNAP has grown nicely.
- The Profit Margin and Operating Margin are not available for 1SNAP so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 54.29% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.14%
GM growth 5Y2.43%
2. Health
2.1 Basic Checks
- 1SNAP does not have a ROIC to compare to the WACC, probably because it is not profitable.
- 1SNAP has more shares outstanding than it did 1 year ago.
- 1SNAP has more shares outstanding than it did 5 years ago.
- 1SNAP has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.17, we must say that 1SNAP is in the distress zone and has some risk of bankruptcy.
- 1SNAP's Altman-Z score of 0.17 is on the low side compared to the rest of the industry. 1SNAP is outperformed by 73.68% of its industry peers.
- 1SNAP has a debt to FCF ratio of 8.55. This is a slightly negative value and a sign of low solvency as 1SNAP would need 8.55 years to pay back of all of its debts.
- 1SNAP has a Debt to FCF ratio of 8.55. This is in the lower half of the industry: 1SNAP underperforms 73.68% of its industry peers.
- A Debt/Equity ratio of 1.57 is on the high side and indicates that 1SNAP has dependencies on debt financing.
- 1SNAP has a Debt to Equity ratio of 1.57. This is in the lower half of the industry: 1SNAP underperforms 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 8.55 | ||
| Altman-Z | 0.17 |
ROIC/WACCN/A
WACC8.77%
2.3 Liquidity
- 1SNAP has a Current Ratio of 3.67. This indicates that 1SNAP is financially healthy and has no problem in meeting its short term obligations.
- 1SNAP has a better Current ratio (3.67) than 84.21% of its industry peers.
- A Quick Ratio of 3.67 indicates that 1SNAP has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 3.67, 1SNAP belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.67 | ||
| Quick Ratio | 3.67 |
3. Growth
3.1 Past
- 1SNAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.67%, which is quite impressive.
- The earnings per share for 1SNAP have been decreasing by -16.04% on average. This is quite bad
- The Revenue has grown by 11.75% in the past year. This is quite good.
- The Revenue has been growing by 25.60% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)56.67%
EPS 3Y-16.04%
EPS 5YN/A
EPS Q2Q%25%
Revenue 1Y (TTM)11.75%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%9.78%
3.2 Future
- 1SNAP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.43% yearly.
- The Revenue is expected to grow by 9.52% on average over the next years. This is quite good.
EPS Next Y-8.9%
EPS Next 2Y13.11%
EPS Next 3Y24.35%
EPS Next 5Y24.43%
Revenue Next Year9.98%
Revenue Next 2Y10.31%
Revenue Next 3Y10.48%
Revenue Next 5Y9.52%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 21.65, which indicates a rather expensive current valuation of 1SNAP.
- Based on the Price/Earnings ratio, 1SNAP is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, 1SNAP is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 19.49, 1SNAP is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, 1SNAP is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. 1SNAP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 19.49 |
4.2 Price Multiples
- 63.16% of the companies in the same industry are more expensive than 1SNAP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.04 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- A more expensive valuation may be justified as 1SNAP's earnings are expected to grow with 24.35% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.11%
EPS Next 3Y24.35%
5. Dividend
5.1 Amount
- 1SNAP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SNAP INC - A / 1SNAP.MI FAQ
Can you provide the ChartMill fundamental rating for SNAP INC - A?
ChartMill assigns a fundamental rating of 4 / 10 to 1SNAP.MI.
What is the valuation status for 1SNAP stock?
ChartMill assigns a valuation rating of 4 / 10 to SNAP INC - A (1SNAP.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for SNAP INC - A?
SNAP INC - A (1SNAP.MI) has a profitability rating of 2 / 10.
What is the valuation of SNAP INC - A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SNAP INC - A (1SNAP.MI) is 21.65 and the Price/Book (PB) ratio is 5.58.
How financially healthy is SNAP INC - A?
The financial health rating of SNAP INC - A (1SNAP.MI) is 4 / 10.