PINTEREST INC- CLASS A (PINS) Stock Fundamental Analysis
NYSE:PINS - New York Stock Exchange, Inc. - US72352L1061 - Common Stock
Overall PINS gets a fundamental rating of 6 out of 10. We evaluated PINS against 72 industry peers in the Interactive Media & Services industry. PINS is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. PINS is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make PINS a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
PINS had positive earnings in the past year.
In the past year PINS had a positive cash flow from operations.
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
PINS has a better Return On Assets (6.18%) than 82.09% of its industry peers.
PINS's Return On Equity of 7.46% is fine compared to the rest of the industry. PINS outperforms 77.61% of its industry peers.
PINS has a better Return On Invested Capital (2.93%) than 62.69% 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
PINS has a better Profit Margin (6.21%) than 77.61% of its industry peers.
The Operating Margin of PINS (3.30%) is better than 61.19% of its industry peers.
With a decent Gross Margin value of 78.94%, PINS is doing good in the industry, outperforming 70.15% of the companies in the same industry.
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
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 21.95 indicates that PINS is not in any danger for bankruptcy at the moment.
PINS's Altman-Z score of 21.95 is amongst the best of the industry. PINS outperforms 94.03% of its industry peers.
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 | 21.95 |
ROIC/WACC0.32
WACC9.25%
2.3 Liquidity
PINS has a Current Ratio of 7.90. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
PINS has a Current ratio of 7.90. This is amongst the best in the industry. PINS outperforms 94.03% 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 better Quick ratio (7.90) than 94.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.9 | ||
| Quick Ratio | 7.9 |
3. Growth
3.1 Past
PINS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.12%, which is quite impressive.
Measured over the past years, PINS shows a very strong growth in Earnings Per Share. The EPS has been growing by 41.29% on average per year.
Looking at the last year, PINS shows a quite strong growth in Revenue. The Revenue has grown by 17.70% in the last year.
The Revenue has been growing by 32.22% on average over the past years. This is a very strong growth!
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 18.12% on average per year.
Based on estimates for the next years, PINS will show a quite strong growth in Revenue. The Revenue will grow by 14.35% on average per year.
EPS Next Y41.5%
EPS Next 2Y29.58%
EPS Next 3Y26.79%
EPS Next 5Y18.12%
Revenue Next Year18.53%
Revenue Next 2Y16.88%
Revenue Next 3Y16.4%
Revenue Next 5Y14.35%
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 21.50, which indicates a rather expensive current valuation of PINS.
Based on the Price/Earnings ratio, PINS is valued a bit cheaper than 74.63% of the companies in the same industry.
PINS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.94, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.53 indicates a correct valuation of PINS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PINS indicates a somewhat cheap valuation: PINS is cheaper than 70.15% of the companies listed in the same industry.
PINS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.5 | ||
| Fwd PE | 16.53 |
4.2 Price Multiples
PINS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, PINS is valued a bit cheaper than 65.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.86 | ||
| EV/EBITDA | 124.33 |
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 26.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y29.58%
EPS Next 3Y26.79%
5. Dividend
5.1 Amount
PINS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PINTEREST INC- CLASS A
NYSE:PINS (1/17/2025, 8:21:14 PM)
After market: 30.401 -0.13 (-0.42%)30.53
+0.14 (+0.46%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners94.98%
Inst Owner Change0.82%
Ins Owners0.3%
Ins Owner Change-0.91%
Market Cap20.63B
Analysts79.57
Price Target40.31 (32.03%)
Short Float %4.88%
Short Ratio2.6
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)2
Avg EPS beat(2)8.2%
Min EPS beat(2)2.49%
Max EPS beat(2)13.9%
EPS beat(4)4
Avg EPS beat(4)16.73%
Min EPS beat(4)1.41%
Max EPS beat(4)49.13%
EPS beat(8)8
Avg EPS beat(8)74.63%
EPS beat(12)11
Avg EPS beat(12)67.69%
EPS beat(16)15
Avg EPS beat(16)62.75%
Revenue beat(2)0
Avg Revenue beat(2)-1.51%
Min Revenue beat(2)-1.74%
Max Revenue beat(2)-1.28%
Revenue beat(4)1
Avg Revenue beat(4)-0.55%
Min Revenue beat(4)-2.85%
Max Revenue beat(4)3.66%
Revenue beat(8)2
Avg Revenue beat(8)-0.65%
Revenue beat(12)4
Avg Revenue beat(12)-0.65%
Revenue beat(16)7
Avg Revenue beat(16)0.32%
PT rev (1m)-0.89%
PT rev (3m)-7.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.11%
EPS NY rev (1m)0%
EPS NY rev (3m)4.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.5 | ||
| Fwd PE | 16.53 | ||
| P/S | 5.94 | ||
| P/FCF | 21.86 | ||
| P/OCF | 21.3 | ||
| P/B | 7.13 | ||
| P/tB | 7.42 | ||
| EV/EBITDA | 124.33 |
EPS(TTM)1.42
EY4.65%
EPS(NY)1.85
Fwd EY6.05%
FCF(TTM)1.4
FCFY4.57%
OCF(TTM)1.43
OCFY4.7%
SpS5.14
BVpS4.28
TBVpS4.12
PEG (NY)0.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | 7.46% | ||
| ROCE | 3.71% | ||
| ROIC | 2.93% | ||
| ROICexc | 14.15% | ||
| ROICexgc | 17.15% | ||
| OM | 3.3% | ||
| PM (TTM) | 6.21% | ||
| GM | 78.94% | ||
| FCFM | 27.17% |
ROA(3y)1.82%
ROA(5y)-11.27%
ROE(3y)2.11%
ROE(5y)-13.33%
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.79%
GM growth 5Y2.63%
F-Score8
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 122.26% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 717.74% | ||
| Profit Quality | 437.32% | ||
| Current Ratio | 7.9 | ||
| Quick Ratio | 7.9 | ||
| Altman-Z | 21.95 |
F-Score8
WACC9.25%
ROIC/WACC0.32
Cap/Depr(3y)44.19%
Cap/Depr(5y)60.24%
Cap/Sales(3y)0.55%
Cap/Sales(5y)1.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)65.12%
EPS 3Y41.29%
EPS 5YN/A
EPS Q2Q%42.86%
EPS Next Y41.5%
EPS Next 2Y29.58%
EPS Next 3Y26.79%
EPS Next 5Y18.12%
Revenue 1Y (TTM)17.7%
Revenue growth 3Y21.75%
Revenue growth 5Y32.22%
Sales Q2Q%17.71%
Revenue Next Year18.53%
Revenue Next 2Y16.88%
Revenue Next 3Y16.4%
Revenue Next 5Y14.35%
EBIT growth 1Y164.31%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year771.26%
EBIT Next 3Y131.24%
EBIT Next 5Y74.28%
FCF growth 1Y59.67%
FCF growth 3Y275.77%
FCF growth 5YN/A
OCF growth 1Y55.59%
OCF growth 3Y177.13%
OCF growth 5YN/A