PINTEREST INC- CLASS A (PINS)
US72352L1061 - Common Stock
We assign a fundamental rating of 6 out of 10 to PINS. PINS was compared to 72 industry peers in the Interactive Media & Services industry. PINS has an excellent financial health rating, but there are some minor concerns on its profitability. PINS is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make PINS suitable for growth investing!
1. Profitability
1.1 Basic Checks
PINS had positive earnings in the past year.
PINS had a positive operating cash flow in the past year.
PINS had negative earnings in 4 of the past 5 years.
PINS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PINS (6.18%) is better than 83.10% of its industry peers.
With a decent Return On Equity value of 7.46%, PINS is doing good in the industry, outperforming 78.87% of the companies in the same industry.
The Return On Invested Capital of PINS (2.93%) is better than 64.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | 7.46% | ||
| ROIC | 2.93% |
ROA(3y)1.82%
ROA(5y)-11.27%
ROE(3y)2.11%
ROE(5y)-13.33%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 6.21%, PINS is doing good in the industry, outperforming 77.46% of the companies in the same industry.
PINS's Operating Margin of 3.30% is fine compared to the rest of the industry. PINS outperforms 61.97% of its industry peers.
PINS has a better Gross Margin (78.94%) than 70.42% of its industry peers.
PINS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.3% | ||
| PM (TTM) | 6.21% | ||
| GM | 78.94% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.79%
GM growth 5Y2.63%
2. Health
2.1 Basic Checks
PINS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PINS has less shares outstanding
PINS has more shares outstanding than it did 5 years ago.
PINS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
PINS has an Altman-Z score of 21.06. This indicates that PINS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PINS (21.06) is better than 97.18% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 21.06 |
ROIC/WACC0.32
WACC9.05%
2.3 Liquidity
A Current Ratio of 7.90 indicates that PINS has no problem at all paying its short term obligations.
PINS's Current ratio of 7.90 is amongst the best of the industry. PINS outperforms 94.37% of its industry peers.
PINS has a Quick Ratio of 7.90. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
PINS has a Quick ratio of 7.90. This is amongst the best in the industry. PINS outperforms 94.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.9 | ||
| Quick Ratio | 7.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 65.12% over the past year.
The Earnings Per Share has been growing by 41.29% on average over the past years. This is a very strong growth
PINS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.70%.
PINS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 32.22% yearly.
EPS 1Y (TTM)65.12%
EPS 3Y41.29%
EPS 5YN/A
EPS Q2Q%42.86%
Revenue 1Y (TTM)17.7%
Revenue growth 3Y21.75%
Revenue growth 5Y32.22%
Sales Q2Q%17.71%
3.2 Future
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.
The Revenue is expected to grow by 15.56% on average over the next years. This is quite good.
EPS Next Y35.67%
EPS Next 2Y28.64%
EPS Next 3Y26.53%
EPS Next 5Y19.43%
Revenue Next Year18.59%
Revenue Next 2Y17.71%
Revenue Next 3Y17.41%
Revenue Next 5Y15.56%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.64, which indicates a rather expensive current valuation of PINS.
73.24% of the companies in the same industry are more expensive than PINS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.96. PINS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.10, which indicates a correct valuation of PINS.
Based on the Price/Forward Earnings ratio, PINS is valued a bit cheaper than 71.83% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, PINS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 16.1 |
4.2 Price Multiples
PINS's Enterprise Value to EBITDA is on the same level as the industry average.
67.61% of the companies in the same industry are more expensive than PINS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.99 | ||
| EV/EBITDA | 117.82 |
4.3 Compensation for Growth
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 26.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y28.64%
EPS Next 3Y26.53%
5. Dividend
5.1 Amount
No dividends for PINS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PINTEREST INC- CLASS A
NYSE:PINS (11/21/2024, 6:12:27 PM)
After market: 29.17 -0.14 (-0.48%)29.31
+0.08 (+0.27%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 16.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.58
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | 7.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.3% | ||
| PM (TTM) | 6.21% | ||
| GM | 78.94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 7.9 | ||
| Quick Ratio | 7.9 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)65.12%
EPS 3Y41.29%
EPS 5Y
EPS Q2Q%
EPS Next Y35.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.7%
Revenue growth 3Y21.75%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y