SNAP INC - A (SNAP) Stock Fundamental Analysis
USA - NYSE:SNAP - US83304A1060 - Common Stock
7.74 USD
+0.28 (+3.75%)
7.75 USD
+0.01 (+0.13%)
SNAP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 69 industry peers in the Interactive Media & Services industry. While SNAP seems to be doing ok healthwise, there are quite some concerns on its profitability. SNAP is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
SNAP had positive earnings in the past year.
SNAP had a positive operating cash flow in the past year.
In the past 5 years SNAP always reported negative net income.
SNAP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SNAP's Return On Assets of -7.38% is on the low side compared to the rest of the industry. SNAP is outperformed by 65.22% of its industry peers.
SNAP's Return On Equity of -26.40% is on the low side compared to the rest of the industry. SNAP is outperformed by 62.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.38% | ||
| ROE | -26.4% | ||
| ROIC | N/A |
ROA(3y)-14.4%
ROA(5y)-13.7%
ROE(3y)-46.22%
ROE(5y)-38.42%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Gross Margin value of 53.82%, SNAP perfoms like the industry average, outperforming 42.03% of the companies in the same industry.
SNAP's Gross Margin has improved in the last couple of years.
SNAP does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 53.82% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.14%
GM growth 5Y2.43%
2. Health
2.1 Basic Checks
SNAP does not have a ROIC to compare to the WACC, probably because it is not profitable.
SNAP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SNAP has been increased compared to 5 years ago.
Compared to 1 year ago, SNAP has an improved debt to assets ratio.
2.2 Solvency
SNAP has an Altman-Z score of -0.17. This is a bad value and indicates that SNAP is not financially healthy and even has some risk of bankruptcy.
SNAP has a worse Altman-Z score (-0.17) than 69.57% of its industry peers.
SNAP has a debt to FCF ratio of 9.11. This is a negative value and a sign of low solvency as SNAP would need 9.11 years to pay back of all of its debts.
SNAP has a Debt to FCF ratio of 9.11. This is comparable to the rest of the industry: SNAP outperforms 55.07% of its industry peers.
SNAP has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
SNAP has a worse Debt to Equity ratio (1.73) than 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | -0.17 |
ROIC/WACCN/A
WACC8.22%
2.3 Liquidity
SNAP has a Current Ratio of 3.88. This indicates that SNAP is financially healthy and has no problem in meeting its short term obligations.
SNAP's Current ratio of 3.88 is amongst the best of the industry. SNAP outperforms 81.16% of its industry peers.
SNAP has a Quick Ratio of 3.88. This indicates that SNAP is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.88, SNAP belongs to the top of the industry, outperforming 81.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 106.00% over the past year.
The earnings per share for SNAP have been decreasing by -16.04% on average. This is quite bad
The Revenue has grown by 13.18% in the past year. This is quite good.
SNAP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.60% yearly.
EPS 1Y (TTM)106%
EPS 3Y-16.04%
EPS 5YN/A
EPS Q2Q%-105%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%8.75%
3.2 Future
The Earnings Per Share is expected to grow by 26.47% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.66% on average over the next years. This is quite good.
EPS Next Y-7.33%
EPS Next 2Y13.23%
EPS Next 3Y23.82%
EPS Next 5Y26.47%
Revenue Next Year10.02%
Revenue Next 2Y10.37%
Revenue Next 3Y10.5%
Revenue Next 5Y9.66%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.97, SNAP is valued on the expensive side.
Based on the Price/Earnings ratio, SNAP is valued a bit cheaper than 60.87% of the companies in the same industry.
SNAP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 20.82 indicates a rather expensive valuation of SNAP.
Based on the Price/Forward Earnings ratio, SNAP is valued a bit cheaper than 60.87% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, SNAP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.97 | ||
| Fwd PE | 20.82 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as SNAP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.33 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SNAP's earnings are expected to grow with 23.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.23%
EPS Next 3Y23.82%
5. Dividend
5.1 Amount
SNAP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.74
+0.28 (+3.75%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners62.96%
Inst Owner Change-5.15%
Ins Owners8.07%
Ins Owner Change-4.62%
Market Cap13.08B
Analysts64.8
Price Target9.6 (24.03%)
Short Float %13.14%
Short Ratio2.5
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)2.17%
Min EPS beat(2)-107.59%
Max EPS beat(2)111.94%
EPS beat(4)3
Avg EPS beat(4)19.2%
Min EPS beat(4)-107.59%
Max EPS beat(4)111.94%
EPS beat(8)7
Avg EPS beat(8)51.35%
EPS beat(12)11
Avg EPS beat(12)118.17%
EPS beat(16)13
Avg EPS beat(16)75.56%
Revenue beat(2)0
Avg Revenue beat(2)-1.41%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-1.26%
Min Revenue beat(4)-2.12%
Max Revenue beat(4)-0.71%
Revenue beat(8)2
Avg Revenue beat(8)-0.18%
Revenue beat(12)2
Avg Revenue beat(12)-0.96%
Revenue beat(16)3
Avg Revenue beat(16)-1.09%
PT rev (1m)-4.71%
PT rev (3m)-1.93%
EPS NQ rev (1m)6.2%
EPS NQ rev (3m)34.79%
EPS NY rev (1m)-4.93%
EPS NY rev (3m)7.44%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.97 | ||
| Fwd PE | 20.82 | ||
| P/S | 2.32 | ||
| P/FCF | 33.33 | ||
| P/OCF | 22.3 | ||
| P/B | 6.32 | ||
| P/tB | 50.36 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.31
EY4.01%
EPS(NY)0.37
Fwd EY4.8%
FCF(TTM)0.23
FCFY3%
OCF(TTM)0.35
OCFY4.49%
SpS3.34
BVpS1.22
TBVpS0.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.38% | ||
| ROE | -26.4% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 53.82% | ||
| FCFM | 6.96% |
ROA(3y)-14.4%
ROA(5y)-13.7%
ROE(3y)-46.22%
ROE(5y)-38.42%
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 3Y-2.14%
GM growth 5Y2.43%
F-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 9.11 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 124.37% | ||
| Cap/Sales | 3.45% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 | ||
| Altman-Z | -0.17 |
F-Score7
WACC8.22%
ROIC/WACCN/A
Cap/Depr(3y)104.3%
Cap/Depr(5y)87.64%
Cap/Sales(3y)3.68%
Cap/Sales(5y)3.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)106%
EPS 3Y-16.04%
EPS 5YN/A
EPS Q2Q%-105%
EPS Next Y-7.33%
EPS Next 2Y13.23%
EPS Next 3Y23.82%
EPS Next 5Y26.47%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%8.75%
Revenue Next Year10.02%
Revenue Next 2Y10.37%
Revenue Next 3Y10.5%
Revenue Next 5Y9.66%
EBIT growth 1Y42.96%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year161.62%
EBIT Next 3Y49.62%
EBIT Next 5Y33.83%
FCF growth 1Y384.01%
FCF growth 3Y-0.65%
FCF growth 5YN/A
OCF growth 1Y134.27%
OCF growth 3Y12.18%
OCF growth 5YN/A