PINTEREST INC- CLASS A (PINS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PINS - US72352L1061 - Common Stock
23.41 USD
-2.49 (-9.61%)
23.72 USD
+0.31 (+1.32%)
Overall PINS gets a fundamental rating of 7 out of 10. We evaluated PINS against 70 industry peers in the Interactive Media & Services industry. PINS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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 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.
- PINS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PINS has a Return On Assets of 36.03%. This is amongst the best in the industry. PINS outperforms 98.57% of its industry peers.
- PINS's Return On Equity of 41.19% is amongst the best of the industry. PINS outperforms 100.00% of its industry peers.
- PINS has a better Return On Invested Capital (4.35%) than 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 36.03% | ||
| ROE | 41.19% | ||
| ROIC | 4.35% |
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 has a Profit Margin of 48.99%. This is amongst the best in the industry. PINS outperforms 95.71% of its industry peers.
- In the last couple of years the Profit Margin of PINS has grown nicely.
- PINS has a Operating Margin of 6.91%. This is in the better half of the industry: PINS outperforms 62.86% of its industry peers.
- PINS's Operating Margin has declined in the last couple of years.
- PINS's Gross Margin of 79.99% is fine compared to the rest of the industry. PINS outperforms 77.14% of its industry peers.
- In the last couple of years the Gross Margin of PINS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.91% | ||
| PM (TTM) | 48.99% | ||
| GM | 79.99% |
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.
- The number of shares outstanding for PINS has been reduced compared to 1 year ago.
- PINS has more shares outstanding than it did 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 15.29 indicates that PINS is not in any danger for bankruptcy at the moment.
- PINS's Altman-Z score of 15.29 is amongst the best of the industry. PINS outperforms 92.86% 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 | 15.29 |
ROIC/WACC0.49
WACC8.86%
2.3 Liquidity
- PINS has a Current Ratio of 8.36. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
- PINS's Current ratio of 8.36 is amongst the best of the industry. PINS outperforms 94.29% of its industry peers.
- A Quick Ratio of 8.36 indicates that PINS has no problem at all paying its short term obligations.
- PINS's Quick ratio of 8.36 is amongst the best of the industry. PINS outperforms 94.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.36 | ||
| Quick Ratio | 8.36 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.63% over the past year.
- The Earnings Per Share has been growing by 8.67% on average over the past years. This is quite good.
- Looking at the last year, PINS shows a quite strong growth in Revenue. The Revenue has grown by 16.79% 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)5.63%
EPS 3Y8.67%
EPS 5YN/A
EPS Q2Q%-5%
Revenue 1Y (TTM)16.79%
Revenue growth 3Y12.25%
Revenue growth 5Y26.12%
Sales Q2Q%16.79%
3.2 Future
- PINS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.58% yearly.
- Based on estimates for the next years, PINS will show a quite strong growth in Revenue. The Revenue will grow by 12.94% on average per year.
EPS Next Y16.68%
EPS Next 2Y16.94%
EPS Next 3Y14.89%
EPS Next 5Y10.58%
Revenue Next Year16.6%
Revenue Next 2Y15.37%
Revenue Next 3Y15.05%
Revenue Next 5Y12.94%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 15.61, which indicates a correct valuation of PINS.
- Based on the Price/Earnings ratio, PINS is valued a bit cheaper than 72.86% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, PINS is valued a bit cheaper.
- The Price/Forward Earnings ratio is 11.81, which indicates a very decent valuation of PINS.
- Based on the Price/Forward Earnings ratio, PINS is valued a bit cheaper than the industry average as 72.86% of the companies are valued more expensively.
- PINS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 11.81 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as PINS.
- PINS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PINS is cheaper than 75.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.1 | ||
| EV/EBITDA | 37.99 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
- PINS's earnings are expected to grow with 14.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y16.94%
EPS Next 3Y14.89%
5. Dividend
5.1 Amount
- No dividends for PINS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
PINTEREST INC- CLASS A / PINS FAQ
What is the fundamental rating for PINS stock?
ChartMill assigns a fundamental rating of 7 / 10 to PINS.
What is the valuation status of PINTEREST INC- CLASS A (PINS) stock?
ChartMill assigns a valuation rating of 6 / 10 to PINTEREST INC- CLASS A (PINS). This can be considered as Fairly Valued.
Can you provide the profitability details for PINTEREST INC- CLASS A?
PINTEREST INC- CLASS A (PINS) has a profitability rating of 7 / 10.
What are the PE and PB ratios of PINTEREST INC- CLASS A (PINS) stock?
The Price/Earnings (PE) ratio for PINTEREST INC- CLASS A (PINS) is 15.61 and the Price/Book (PB) ratio is 3.28.