SNAP INC - A (SNAP) Stock Fundamental Analysis
NYSE:SNAP - New York Stock Exchange, Inc. - US83304A1060 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to SNAP. SNAP was compared to 72 industry peers in the Interactive Media & Services industry. The financial health of SNAP is average, but there are quite some concerns on its profitability. 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.
In the past year SNAP had a positive cash flow from operations.
SNAP had negative earnings in each of the past 5 years.
In multiple years SNAP reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -12.58%, SNAP is in line with its industry, outperforming 44.78% of the companies in the same industry.
The Return On Equity of SNAP (-43.22%) is worse than 62.69% 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
Looking at the Gross Margin, with a value of 53.09%, SNAP is doing worse than 64.18% 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 | 53.09% |
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.
Compared to 1 year ago, SNAP has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.45, we must say that SNAP is in the distress zone and has some risk of bankruptcy.
SNAP's Altman-Z score of 0.45 is on the low side compared to the rest of the industry. SNAP is outperformed by 64.18% of its industry peers.
SNAP has a debt to FCF ratio of 24.75. This is a negative value and a sign of low solvency as SNAP would need 24.75 years to pay back of all of its debts.
SNAP has a Debt to FCF ratio of 24.75. This is comparable to the rest of the industry: SNAP outperforms 50.75% of its industry peers.
SNAP has a Debt/Equity ratio of 1.63. This is a high value indicating a heavy dependency on external financing.
SNAP has a worse Debt to Equity ratio (1.63) than 79.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 24.75 | ||
| Altman-Z | 0.45 |
ROIC/WACCN/A
WACC7.67%
2.3 Liquidity
SNAP has a Current Ratio of 4.04. This indicates that SNAP is financially healthy and has no problem in meeting its short term obligations.
SNAP has a Current ratio of 4.04. This is amongst the best in the industry. SNAP outperforms 80.60% of its industry peers.
A Quick Ratio of 4.04 indicates that SNAP has no problem at all paying its short term obligations.
SNAP's Quick ratio of 4.04 is amongst the best of the industry. SNAP outperforms 80.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.04 | ||
| Quick Ratio | 4.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.00% over the past year.
Looking at the last year, SNAP shows a quite strong growth in Revenue. The Revenue has grown by 13.66% in the last year.
The Revenue has been growing by 31.30% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 64.33% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.13% on average over the next years. This is quite good.
EPS Next Y191.27%
EPS Next 2Y117.54%
EPS Next 3Y91.11%
EPS Next 5Y64.33%
Revenue Next Year15.94%
Revenue Next 2Y14.69%
Revenue Next 3Y14.23%
Revenue Next 5Y13.13%
3.3 Evolution
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 51.57, SNAP can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as SNAP.
When comparing the Price/Earnings ratio of SNAP to the average of the S&P500 Index (28.64), we can say SNAP is valued expensively.
A Price/Forward Earnings ratio of 25.43 indicates a quite expensive valuation of SNAP.
SNAP's Price/Forward Earnings ratio is in line with the industry average.
SNAP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.57 | ||
| Fwd PE | 25.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SNAP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 123.44 | ||
| 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.
SNAP's earnings are expected to grow with 91.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y117.54%
EPS Next 3Y91.11%
5. Dividend
5.1 Amount
No dividends for SNAP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SNAP INC - A
NYSE:SNAP (1/24/2025, 12:26:00 PM)
10.83
+0.25 (+2.36%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners61.36%
Inst Owner Change-0.36%
Ins Owners7.66%
Ins Owner Change-1.78%
Market Cap18.16B
Analysts66.4
Price Target13.2 (21.88%)
Short Float %8.06%
Short Ratio2.83
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)29.88%
Min EPS beat(2)0.45%
Max EPS beat(2)59.32%
EPS beat(4)4
Avg EPS beat(4)61.74%
Min EPS beat(4)0.45%
Max EPS beat(4)162.34%
EPS beat(8)8
Avg EPS beat(8)90.85%
EPS beat(12)10
Avg EPS beat(12)90.33%
EPS beat(16)14
Avg EPS beat(16)163.5%
Revenue beat(2)0
Avg Revenue beat(2)-1.99%
Min Revenue beat(2)-3.07%
Max Revenue beat(2)-0.9%
Revenue beat(4)1
Avg Revenue beat(4)-0.58%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)4.62%
Revenue beat(8)2
Avg Revenue beat(8)-0.52%
Revenue beat(12)3
Avg Revenue beat(12)-0.7%
Revenue beat(16)6
Avg Revenue beat(16)0.38%
PT rev (1m)-0.23%
PT rev (3m)2.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.53%
EPS NY rev (1m)0%
EPS NY rev (3m)17.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.57 | ||
| Fwd PE | 25.43 | ||
| P/S | 3.52 | ||
| P/FCF | 123.44 | ||
| P/OCF | 52.28 | ||
| P/B | 8.22 | ||
| P/tB | 43.54 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.21
EY1.94%
EPS(NY)0.43
Fwd EY3.93%
FCF(TTM)0.09
FCFY0.81%
OCF(TTM)0.21
OCFY1.91%
SpS3.08
BVpS1.32
TBVpS0.25
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.58% | ||
| ROE | -43.22% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 53.09% | ||
| FCFM | 2.85% |
ROA(3y)-13.63%
ROA(5y)-17.09%
ROE(3y)-41.02%
ROE(5y)-41.87%
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 3Y0.8%
GM growth 5Y10.85%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 24.75 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 117.24% | ||
| Cap/Sales | 3.88% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.04 | ||
| Quick Ratio | 4.04 | ||
| Altman-Z | 0.45 |
F-Score6
WACC7.67%
ROIC/WACCN/A
Cap/Depr(3y)82.77%
Cap/Depr(5y)71.36%
Cap/Sales(3y)3.03%
Cap/Sales(5y)2.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)40%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
EPS Next Y191.27%
EPS Next 2Y117.54%
EPS Next 3Y91.11%
EPS Next 5Y64.33%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y22.48%
Revenue growth 5Y31.3%
Sales Q2Q%15.48%
Revenue Next Year15.94%
Revenue Next 2Y14.69%
Revenue Next 3Y14.23%
Revenue Next 5Y13.13%
EBIT growth 1Y33.07%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year132.69%
EBIT Next 3Y40.36%
EBIT Next 5Y27.53%
FCF growth 1Y6.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y41.89%
OCF growth 3YN/A
OCF growth 5YN/A