SNAP INC - A (SNAP)
US83304A1060 - Common Stock
SNAP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 72 industry peers in the Interactive Media & Services industry. Both the profitability and financial health of SNAP have multiple concerns. SNAP is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year SNAP was profitable.
SNAP had a positive operating cash flow in the past year.
SNAP had negative earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: SNAP reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of SNAP (-12.58%) is comparable to the rest of the industry.
The Return On Equity of SNAP (-43.22%) is worse than 68.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.58% | ||
| ROE | -43.22% | ||
| ROIC | N/A |
ROA(3y)-13.63%
ROA(5y)-17.09%
ROE(3y)-41.02%
ROE(5y)-41.87%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Gross Margin value of 53.09%, SNAP is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
SNAP's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for SNAP so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 53.09% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.8%
GM growth 5Y10.85%
2. Health
2.1 Basic Checks
SNAP does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for SNAP has been increased compared to 1 year ago.
SNAP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SNAP is higher compared to a year ago.
2.2 Solvency
SNAP has an Altman-Z score of 0.46. This is a bad value and indicates that SNAP is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.46, SNAP is not doing good in the industry: 68.06% of the companies in the same industry are doing better.
The Debt to FCF ratio of SNAP is 24.75, which is on the high side as it means it would take SNAP, 24.75 years of fcf income to pay off all of its debts.
SNAP's Debt to FCF ratio of 24.75 is in line compared to the rest of the industry. SNAP outperforms 52.78% of its industry peers.
A Debt/Equity ratio of 1.63 is on the high side and indicates that SNAP has dependencies on debt financing.
With a Debt to Equity ratio value of 1.63, SNAP is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 24.75 | ||
| Altman-Z | 0.46 |
ROIC/WACCN/A
WACC7.62%
2.3 Liquidity
A Current Ratio of 4.04 indicates that SNAP has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.04, SNAP is doing good in the industry, outperforming 79.17% of the companies in the same industry.
A Quick Ratio of 4.04 indicates that SNAP has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.04, SNAP is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.04 | ||
| Quick Ratio | 4.04 |
3. Growth
3.1 Past
SNAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.00%, which is quite impressive.
SNAP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.66%.
Measured over the past years, SNAP shows a very strong growth in Revenue. The Revenue has been growing by 31.30% on average per year.
EPS 1Y (TTM)40%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y22.48%
Revenue growth 5Y31.3%
Sales Q2Q%15.48%
3.2 Future
Based on estimates for the next years, SNAP will show a very strong growth in Earnings Per Share. The EPS will grow by 70.33% on average per year.
SNAP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.48% yearly.
EPS Next Y183.03%
EPS Next 2Y114.61%
EPS Next 3Y89.43%
EPS Next 5Y70.33%
Revenue Next Year15.92%
Revenue Next 2Y14.74%
Revenue Next 3Y14.24%
Revenue Next 5Y13.48%
3.3 Evolution
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
A Price/Earnings ratio of 54.38 indicates a quite expensive valuation of SNAP.
Compared to the rest of the industry, the Price/Earnings ratio of SNAP is on the same level as its industry peers.
SNAP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.96.
Based on the Price/Forward Earnings ratio of 27.55, the valuation of SNAP can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as SNAP.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, SNAP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.38 | ||
| Fwd PE | 27.55 |
4.2 Price Multiples
SNAP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 130.16 | ||
| EV/EBITDA | N/A |
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.
A more expensive valuation may be justified as SNAP's earnings are expected to grow with 89.43% in the coming years.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y114.61%
EPS Next 3Y89.43%
5. Dividend
5.1 Amount
SNAP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SNAP INC - A
NYSE:SNAP (11/22/2024, 5:24:09 PM)
After market: 11.42 0 (0%)11.42
+0.79 (+7.43%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.15B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.38 | ||
| Fwd PE | 27.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.58% | ||
| ROE | -43.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 53.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.04 | ||
| Quick Ratio | 4.04 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)40%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y183.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.66%
Revenue growth 3Y22.48%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y