PINTEREST INC- CLASS A (PINS) Stock Fundamental Analysis
USA - NYSE:PINS - US72352L1061 - Common Stock
36.49 USD
+0.24 (+0.66%)
36.81 USD
+0.32 (+0.88%)
PINS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 69 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making PINS a very profitable company, without any liquidiy or solvency issues. PINS is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make PINS suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year PINS was profitable.
In the past year PINS had a positive cash flow from operations.
In multiple years PINS reported negative net income over the last 5 years.
Each year in the past 5 years PINS had a positive operating cash flow.
1.2 Ratios
PINS has a better Return On Assets (35.64%) than 100.00% of its industry peers.
PINS has a better Return On Equity (40.02%) than 100.00% of its industry peers.
PINS's Return On Invested Capital of 3.41% is fine compared to the rest of the industry. PINS outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.64% | ||
| ROE | 40.02% | ||
| ROIC | 3.41% |
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
PINS's Profit Margin of 49.30% is amongst the best of the industry. PINS outperforms 97.10% of its industry peers.
PINS's Profit Margin has improved in the last couple of years.
PINS has a Operating Margin of 5.53%. This is in the better half of the industry: PINS outperforms 63.77% of its industry peers.
PINS's Operating Margin has declined in the last couple of years.
The Gross Margin of PINS (79.86%) is better than 76.81% of its industry peers.
In the last couple of years the Gross Margin of PINS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.53% | ||
| PM (TTM) | 49.3% | ||
| GM | 79.86% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
PINS has an Altman-Z score of 26.67. This indicates that PINS is financially healthy and has little risk of bankruptcy at the moment.
PINS has a Altman-Z score of 26.67. This is amongst the best in the industry. PINS outperforms 98.55% 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 | 26.67 |
ROIC/WACC0.37
WACC9.3%
2.3 Liquidity
PINS has a Current Ratio of 8.76. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
PINS has a Current ratio of 8.76. This is amongst the best in the industry. PINS outperforms 94.20% of its industry peers.
PINS has a Quick Ratio of 8.76. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
PINS has a Quick ratio of 8.76. This is amongst the best in the industry. PINS outperforms 94.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.76 | ||
| Quick Ratio | 8.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.92% over the past year.
The Earnings Per Share has been growing by 8.67% on average over the past years. This is quite good.
The Revenue has grown by 17.00% in the past year. This is quite good.
PINS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.12% yearly.
EPS 1Y (TTM)16.92%
EPS 3Y8.67%
EPS 5YN/A
EPS Q2Q%13.79%
Revenue 1Y (TTM)17%
Revenue growth 3Y12.25%
Revenue growth 5Y26.12%
Sales Q2Q%16.93%
3.2 Future
The Earnings Per Share is expected to grow by 15.41% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.30% on average over the next years. This is quite good.
EPS Next Y26.68%
EPS Next 2Y23.29%
EPS Next 3Y21.57%
EPS Next 5Y15.41%
Revenue Next Year16.74%
Revenue Next 2Y15.73%
Revenue Next 3Y15.24%
Revenue Next 5Y13.3%
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
A Price/Earnings ratio of 24.01 indicates a rather expensive valuation of PINS.
PINS's Price/Earnings ratio is a bit cheaper when compared to the industry. PINS is cheaper than 62.32% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. PINS is around the same levels.
Based on the Price/Forward Earnings ratio of 16.56, the valuation of PINS can be described as correct.
65.22% of the companies in the same industry are more expensive than PINS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PINS to the average of the S&P500 Index (22.70), we can say PINS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.01 | ||
| 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PINS indicates a somewhat cheap valuation: PINS is cheaper than 68.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.69 | ||
| EV/EBITDA | 86.54 |
4.3 Compensation for Growth
The 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.
PINS's earnings are expected to grow with 21.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y23.29%
EPS Next 3Y21.57%
5. Dividend
5.1 Amount
PINS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.49
+0.24 (+0.66%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.23%
Inst Owner Change-4.29%
Ins Owners0.45%
Ins Owner Change4.36%
Market Cap24.81B
Analysts81.7
Price Target43.91 (20.33%)
Short Float %5.32%
Short Ratio3.28
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)-9.99%
Min EPS beat(2)-11.72%
Max EPS beat(2)-8.27%
EPS beat(4)1
Avg EPS beat(4)-5.25%
Min EPS beat(4)-14.91%
Max EPS beat(4)13.9%
EPS beat(8)5
Avg EPS beat(8)8.62%
EPS beat(12)9
Avg EPS beat(12)53.58%
EPS beat(16)12
Avg EPS beat(16)49.81%
Revenue beat(2)1
Avg Revenue beat(2)-0.3%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)0.39%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)0.39%
Revenue beat(8)3
Avg Revenue beat(8)-0.34%
Revenue beat(12)4
Avg Revenue beat(12)-0.47%
Revenue beat(16)5
Avg Revenue beat(16)-0.66%
PT rev (1m)3.52%
PT rev (3m)7.37%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)2.79%
EPS NY rev (3m)1.23%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)2.49%
Revenue NY rev (1m)1.53%
Revenue NY rev (3m)1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.01 | ||
| Fwd PE | 16.56 | ||
| P/S | 6.35 | ||
| P/FCF | 23.69 | ||
| P/OCF | 23.11 | ||
| P/B | 5.16 | ||
| P/tB | 5.28 | ||
| EV/EBITDA | 86.54 |
EPS(TTM)1.52
EY4.17%
EPS(NY)2.2
Fwd EY6.04%
FCF(TTM)1.54
FCFY4.22%
OCF(TTM)1.58
OCFY4.33%
SpS5.74
BVpS7.08
TBVpS6.92
PEG (NY)0.9
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.64% | ||
| ROE | 40.02% | ||
| ROCE | 4.32% | ||
| ROIC | 3.41% | ||
| ROICexc | 7.28% | ||
| ROICexgc | 7.64% | ||
| OM | 5.53% | ||
| PM (TTM) | 49.3% | ||
| GM | 79.86% | ||
| FCFM | 26.82% |
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 Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 111.04% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 448.59% | ||
| Profit Quality | 54.39% | ||
| Current Ratio | 8.76 | ||
| Quick Ratio | 8.76 | ||
| Altman-Z | 26.67 |
F-Score6
WACC9.3%
ROIC/WACC0.37
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)16.92%
EPS 3Y8.67%
EPS 5YN/A
EPS Q2Q%13.79%
EPS Next Y26.68%
EPS Next 2Y23.29%
EPS Next 3Y21.57%
EPS Next 5Y15.41%
Revenue 1Y (TTM)17%
Revenue growth 3Y12.25%
Revenue growth 5Y26.12%
Sales Q2Q%16.93%
Revenue Next Year16.74%
Revenue Next 2Y15.73%
Revenue Next 3Y15.24%
Revenue Next 5Y13.3%
EBIT growth 1Y87.07%
EBIT growth 3Y-18.01%
EBIT growth 5YN/A
EBIT Next Year639.38%
EBIT Next 3Y122.32%
EBIT Next 5Y69.7%
FCF growth 1Y183.09%
FCF growth 3Y8.11%
FCF growth 5YN/A
OCF growth 1Y181.07%
OCF growth 3Y8.61%
OCF growth 5Y324.47%