PINTEREST INC- CLASS A (PINS) Stock Fundamental Analysis
NYSE:PINS - New York Stock Exchange, Inc. - US72352L1061 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to PINS. PINS was compared to 70 industry peers in the Interactive Media & Services industry. PINS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PINS is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, PINS could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year PINS was profitable.
PINS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PINS reported negative net income in multiple years.
In the past 5 years PINS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PINS (35.89%) is better than 100.00% of its industry peers.
PINS has a Return On Equity of 40.44%. This is amongst the best in the industry. PINS outperforms 98.57% of its industry peers.
PINS has a Return On Invested Capital of 3.22%. This is in the better half of the industry: PINS outperforms 67.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.89% | ||
| ROE | 40.44% | ||
| ROIC | 3.22% |
ROA(3y)10.46%
ROA(5y)7.08%
ROE(3y)11.71%
ROE(5y)7.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of PINS (50.41%) is better than 98.57% of its industry peers.
PINS's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 5.28%, PINS is doing good in the industry, outperforming 64.29% of the companies in the same industry.
In the last couple of years the Operating Margin of PINS has declined.
The Gross Margin of PINS (79.57%) is better than 74.29% of its industry peers.
In the last couple of years the Gross Margin of PINS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.28% | ||
| PM (TTM) | 50.41% | ||
| GM | 79.57% |
OM growth 3Y-26.95%
OM growth 5YN/A
PM growth 3Y60.84%
PM growth 5YN/A
GM growth 3Y-0.02%
GM growth 5Y2.97%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PINS is destroying value.
Compared to 1 year ago, PINS has less shares outstanding
Compared to 5 years ago, PINS has more shares outstanding
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.
2.2 Solvency
An Altman-Z score of 25.64 indicates that PINS is not in any danger for bankruptcy at the moment.
PINS has a better Altman-Z score (25.64) than 95.71% 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 | 25.64 |
ROIC/WACC0.34
WACC9.44%
2.3 Liquidity
A Current Ratio of 8.41 indicates that PINS has no problem at all paying its short term obligations.
PINS's Current ratio of 8.41 is amongst the best of the industry. PINS outperforms 92.86% of its industry peers.
PINS has a Quick Ratio of 8.41. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 8.41, PINS belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.41 | ||
| Quick Ratio | 8.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.31% 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.
Looking at the last year, PINS shows a quite strong growth in Revenue. The Revenue has grown by 17.81% in the last year.
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.
EPS 1Y (TTM)21.31%
EPS 3Y8.67%
EPS 5YN/A
EPS Q2Q%15%
Revenue 1Y (TTM)17.81%
Revenue growth 3Y12.25%
Revenue growth 5Y26.12%
Sales Q2Q%15.54%
3.2 Future
The Earnings Per Share is expected to grow by 18.63% on average over the next years. This is quite good.
PINS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.34% yearly.
EPS Next Y23.24%
EPS Next 2Y21.44%
EPS Next 3Y19.71%
EPS Next 5Y18.63%
Revenue Next Year14.61%
Revenue Next 2Y15.05%
Revenue Next 3Y13.92%
Revenue Next 5Y14.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
With a Price/Earnings ratio of 23.93, PINS is valued on the expensive side.
PINS's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.30. PINS is around the same levels.
A Price/Forward Earnings ratio of 16.56 indicates a correct valuation of PINS.
PINS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PINS is cheaper than 68.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PINS to the average of the S&P500 Index (21.76), we can say PINS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.93 | ||
| Fwd PE | 16.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PINS is on the same level as its industry peers.
PINS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.16 | ||
| EV/EBITDA | 90.44 |
4.3 Compensation for Growth
PINS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PINS may justify a higher PE ratio.
A more expensive valuation may be justified as PINS's earnings are expected to grow with 19.71% in the coming years.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y21.44%
EPS Next 3Y19.71%
5. Dividend
5.1 Amount
PINS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
35.42
-0.38 (-1.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.74%
Inst Owner Change0.82%
Ins Owners0.47%
Ins Owner Change4.03%
Market Cap23.97B
Analysts81.28
Price Target40.9 (15.47%)
Short Float %4.21%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.31%
Min EPS beat(2)-14.91%
Max EPS beat(2)-11.72%
EPS beat(4)2
Avg EPS beat(4)-2.56%
Min EPS beat(4)-14.91%
Max EPS beat(4)13.9%
EPS beat(8)6
Avg EPS beat(8)19.24%
EPS beat(12)9
Avg EPS beat(12)50.94%
EPS beat(16)13
Avg EPS beat(16)56.02%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)-0.59%
Revenue beat(4)0
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)-0.59%
Revenue beat(8)2
Avg Revenue beat(8)-0.43%
Revenue beat(12)3
Avg Revenue beat(12)-0.68%
Revenue beat(16)5
Avg Revenue beat(16)-0.25%
PT rev (1m)0.01%
PT rev (3m)-11.66%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)-2.51%
EPS NY rev (1m)-1.51%
EPS NY rev (3m)-5.26%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.93 | ||
| Fwd PE | 16.56 | ||
| P/S | 6.37 | ||
| P/FCF | 25.16 | ||
| P/OCF | 24.65 | ||
| P/B | 5.11 | ||
| P/tB | 5.23 | ||
| EV/EBITDA | 90.44 |
EPS(TTM)1.48
EY4.18%
EPS(NY)2.14
Fwd EY6.04%
FCF(TTM)1.41
FCFY3.97%
OCF(TTM)1.44
OCFY4.06%
SpS5.56
BVpS6.93
TBVpS6.77
PEG (NY)1.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.89% | ||
| ROE | 40.44% | ||
| ROCE | 4.07% | ||
| ROIC | 3.22% | ||
| ROICexc | 6.94% | ||
| ROICexgc | 7.29% | ||
| OM | 5.28% | ||
| PM (TTM) | 50.41% | ||
| GM | 79.57% | ||
| FCFM | 25.32% |
ROA(3y)10.46%
ROA(5y)7.08%
ROE(3y)11.71%
ROE(5y)7.96%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-44.09%
ROICexcg growth 5YN/A
ROICexc growth 3Y-43.46%
ROICexc growth 5YN/A
OM growth 3Y-26.95%
OM growth 5YN/A
PM growth 3Y60.84%
PM growth 5YN/A
GM growth 3Y-0.02%
GM growth 5Y2.97%
F-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 88.9% | ||
| Cap/Sales | 0.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 439.87% | ||
| Profit Quality | 50.23% | ||
| Current Ratio | 8.41 | ||
| Quick Ratio | 8.41 | ||
| Altman-Z | 25.64 |
F-Score6
WACC9.44%
ROIC/WACC0.34
Cap/Depr(3y)71.85%
Cap/Depr(5y)59.06%
Cap/Sales(3y)0.66%
Cap/Sales(5y)0.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.31%
EPS 3Y8.67%
EPS 5YN/A
EPS Q2Q%15%
EPS Next Y23.24%
EPS Next 2Y21.44%
EPS Next 3Y19.71%
EPS Next 5Y18.63%
Revenue 1Y (TTM)17.81%
Revenue growth 3Y12.25%
Revenue growth 5Y26.12%
Sales Q2Q%15.54%
Revenue Next Year14.61%
Revenue Next 2Y15.05%
Revenue Next 3Y13.92%
Revenue Next 5Y14.34%
EBIT growth 1Y187.08%
EBIT growth 3Y-18.01%
EBIT growth 5YN/A
EBIT Next Year632.93%
EBIT Next 3Y121.29%
EBIT Next 5Y70.23%
FCF growth 1Y129.38%
FCF growth 3Y8.11%
FCF growth 5YN/A
OCF growth 1Y121.3%
OCF growth 3Y8.61%
OCF growth 5Y324.47%