PINTEREST INC- CLASS A (PINS) Stock Fundamental Analysis
NYSE:PINS - New York Stock Exchange, Inc. - US72352L1061 - Common Stock - Currency: USD
Overall PINS gets a fundamental rating of 7 out of 10. We evaluated PINS against 71 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 growing strongly while it is still valued neutral. This is a good combination! With these ratings, PINS could be worth investigating further for growth and quality 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.
In multiple years PINS reported negative net income over the last 5 years.
PINS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 34.85%, PINS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PINS's Return On Equity of 39.19% is amongst the best of the industry. PINS outperforms 100.00% of its industry peers.
PINS has a better Return On Invested Capital (2.87%) than 62.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.85% | ||
| ROE | 39.19% | ||
| ROIC | 2.87% |
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 51.07% is amongst the best of the industry. PINS outperforms 98.48% of its industry peers.
PINS's Profit Margin has improved in the last couple of years.
PINS has a better Operating Margin (4.93%) than 65.15% of its industry peers.
In the last couple of years the Operating Margin of PINS has declined.
Looking at the Gross Margin, with a value of 79.42%, PINS is in the better half of the industry, outperforming 71.21% of the companies in the same industry.
PINS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.93% | ||
| PM (TTM) | 51.07% | ||
| GM | 79.42% |
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
PINS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PINS has been reduced compared to 1 year ago.
The number of shares outstanding for PINS has been increased compared to 5 years ago.
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 28.63 indicates that PINS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 28.63, PINS belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 28.63 |
ROIC/WACC0.31
WACC9.14%
2.3 Liquidity
PINS has a Current Ratio of 8.75. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 8.75, PINS belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
PINS has a Quick Ratio of 8.75. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
PINS has a better Quick ratio (8.75) than 93.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.75 | ||
| Quick Ratio | 8.75 |
3. Growth
3.1 Past
PINS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.82%, which is quite impressive.
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 19.35% in the past year. This is quite good.
The Revenue has been growing by 26.12% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)31.82%
EPS 3Y8.67%
EPS 5YN/A
EPS Q2Q%5.66%
Revenue 1Y (TTM)19.35%
Revenue growth 3Y12.25%
Revenue growth 5Y26.12%
Sales Q2Q%17.62%
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 14.11% on average per year.
The Revenue is expected to grow by 12.31% on average over the next years. This is quite good.
EPS Next Y29.91%
EPS Next 2Y24.22%
EPS Next 3Y22.83%
EPS Next 5Y14.11%
Revenue Next Year14.74%
Revenue Next 2Y14.91%
Revenue Next 3Y14.64%
Revenue Next 5Y12.31%
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 26.02, PINS can be considered very expensive at the moment.
Based on the Price/Earnings ratio, PINS is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.63, PINS is valued at the same level.
PINS is valuated rather expensively with a Price/Forward Earnings ratio of 20.03.
PINS's Price/Forward Earnings is on the same level as the industry average.
PINS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.02 | ||
| Fwd PE | 20.03 |
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.
Based on the Price/Free Cash Flow ratio, PINS is valued a bit cheaper than the industry average as 65.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.22 | ||
| EV/EBITDA | 114.09 |
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.
The decent profitability rating of PINS may justify a higher PE ratio.
PINS's earnings are expected to grow with 22.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y24.22%
EPS Next 3Y22.83%
5. Dividend
5.1 Amount
No dividends for PINS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
37.73
-1.83 (-4.63%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners94.98%
Inst Owner Change0.71%
Ins Owners0.3%
Ins Owner Change-0.93%
Market Cap25.59B
Analysts79.57
Price Target39.88 (5.7%)
Short Float %4.19%
Short Ratio2.16
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)1
Avg EPS beat(2)-0.5%
Min EPS beat(2)-14.91%
Max EPS beat(2)13.9%
EPS beat(4)3
Avg EPS beat(4)12.65%
Min EPS beat(4)-14.91%
Max EPS beat(4)49.13%
EPS beat(8)7
Avg EPS beat(8)72.29%
EPS beat(12)10
Avg EPS beat(12)65.98%
EPS beat(16)14
Avg EPS beat(16)59.88%
Revenue beat(2)0
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-1.74%
Max Revenue beat(2)-0.59%
Revenue beat(4)1
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)3.66%
Revenue beat(8)2
Avg Revenue beat(8)-0.35%
Revenue beat(12)3
Avg Revenue beat(12)-0.73%
Revenue beat(16)6
Avg Revenue beat(16)-0.17%
PT rev (1m)-1.05%
PT rev (3m)-8.36%
EPS NQ rev (1m)7.36%
EPS NQ rev (3m)1.85%
EPS NY rev (1m)1.99%
EPS NY rev (3m)3.48%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)-2.51%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.02 | ||
| Fwd PE | 20.03 | ||
| P/S | 7.02 | ||
| P/FCF | 27.22 | ||
| P/OCF | 26.53 | ||
| P/B | 5.39 | ||
| P/tB | 5.51 | ||
| EV/EBITDA | 114.09 |
EPS(TTM)1.45
EY3.84%
EPS(NY)1.88
Fwd EY4.99%
FCF(TTM)1.39
FCFY3.67%
OCF(TTM)1.42
OCFY3.77%
SpS5.38
BVpS7.01
TBVpS6.84
PEG (NY)0.87
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.85% | ||
| ROE | 39.19% | ||
| ROCE | 3.64% | ||
| ROIC | 2.87% | ||
| ROICexc | 5.84% | ||
| ROICexgc | 6.12% | ||
| OM | 4.93% | ||
| PM (TTM) | 51.07% | ||
| GM | 79.42% | ||
| FCFM | 25.78% |
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 Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 115.71% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 479.7% | ||
| Profit Quality | 50.48% | ||
| Current Ratio | 8.75 | ||
| Quick Ratio | 8.75 | ||
| Altman-Z | 28.63 |
F-Score6
WACC9.14%
ROIC/WACC0.31
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)31.82%
EPS 3Y8.67%
EPS 5YN/A
EPS Q2Q%5.66%
EPS Next Y29.91%
EPS Next 2Y24.22%
EPS Next 3Y22.83%
EPS Next 5Y14.11%
Revenue 1Y (TTM)19.35%
Revenue growth 3Y12.25%
Revenue growth 5Y26.12%
Sales Q2Q%17.62%
Revenue Next Year14.74%
Revenue Next 2Y14.91%
Revenue Next 3Y14.64%
Revenue Next 5Y12.31%
EBIT growth 1Y14285.4%
EBIT growth 3Y-18.01%
EBIT growth 5YN/A
EBIT Next Year621.81%
EBIT Next 3Y123.18%
EBIT Next 5Y68.44%
FCF growth 1Y55.4%
FCF growth 3Y8.11%
FCF growth 5YN/A
OCF growth 1Y57.37%
OCF growth 3Y8.61%
OCF growth 5Y324.47%