SNAP INC - A (SNAP) Stock Fundamental Analysis
USA - NYSE:SNAP - US83304A1060 - Common Stock
7.65 USD
-0.11 (-1.42%)
7.73 USD
+0.08 (+1.05%)
Taking everything into account, SNAP scores 4 out of 10 in our fundamental rating. SNAP was compared to 70 industry peers in the Interactive Media & Services industry. SNAP scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
Of the past 5 years SNAP 4 years had a positive operating cash flow.
1.2 Ratios
SNAP has a Return On Assets of -7.38%. This is in the lower half of the industry: SNAP underperforms 64.29% of its industry peers.
The Return On Equity of SNAP (-26.40%) is worse than 61.43% 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 41.43% 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.
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 an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.14, we must say that SNAP is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.14, SNAP is doing worse than 64.29% of the companies in the same industry.
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 58.57% of its industry peers.
A Debt/Equity ratio of 1.73 is on the high side and indicates that SNAP has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.73, SNAP is doing worse than 81.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | -0.14 |
ROIC/WACCN/A
WACC9.12%
2.3 Liquidity
A Current Ratio of 3.88 indicates that SNAP has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.88, SNAP belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
A Quick Ratio of 3.88 indicates that SNAP has no problem at all paying its short term obligations.
The Quick ratio of SNAP (3.88) is better than 81.43% of its industry peers.
| 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
Looking at the last year, SNAP shows a quite strong growth in Revenue. The Revenue has grown by 13.18% in the last year.
Measured over the past years, SNAP shows a very strong growth in Revenue. The Revenue has been growing by 25.60% on average per year.
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
SNAP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.47% yearly.
The Revenue is expected to grow by 9.66% on average over the next years. This is quite good.
EPS Next Y-7.85%
EPS Next 2Y13.82%
EPS Next 3Y23.11%
EPS Next 5Y26.47%
Revenue Next Year9.98%
Revenue Next 2Y10.33%
Revenue Next 3Y10.51%
Revenue Next 5Y9.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.68, the valuation of SNAP can be described as rather expensive.
61.43% of the companies in the same industry are more expensive than SNAP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SNAP to the average of the S&P500 Index (27.42), we can say SNAP is valued inline with the index average.
A Price/Forward Earnings ratio of 20.36 indicates a rather expensive valuation of SNAP.
SNAP's Price/Forward Earnings is on the same level as the industry average.
SNAP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.68 | ||
| Fwd PE | 20.36 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SNAP is valued a bit cheaper than 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.95 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SNAP's earnings are expected to grow with 23.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.82%
EPS Next 3Y23.11%
5. Dividend
5.1 Amount
SNAP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.65
-0.11 (-1.42%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners60.14%
Inst Owner Change0.12%
Ins Owners7.54%
Ins Owner Change-4.65%
Market Cap12.93B
Analysts64.31
Price Target9.49 (24.05%)
Short Float %9.64%
Short Ratio1.22
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)-1.11%
PT rev (3m)-4.63%
EPS NQ rev (1m)-2.89%
EPS NQ rev (3m)6.25%
EPS NY rev (1m)-0.55%
EPS NY rev (3m)-5.46%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.68 | ||
| Fwd PE | 20.36 | ||
| P/S | 2.29 | ||
| P/FCF | 32.95 | ||
| P/OCF | 22.04 | ||
| P/B | 6.25 | ||
| P/tB | 49.77 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.31
EY4.05%
EPS(NY)0.38
Fwd EY4.91%
FCF(TTM)0.23
FCFY3.04%
OCF(TTM)0.35
OCFY4.54%
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 | -0.14 |
F-Score7
WACC9.12%
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-7.85%
EPS Next 2Y13.82%
EPS Next 3Y23.11%
EPS Next 5Y26.47%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%8.75%
Revenue Next Year9.98%
Revenue Next 2Y10.33%
Revenue Next 3Y10.51%
Revenue Next 5Y9.66%
EBIT growth 1Y42.96%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year162.29%
EBIT Next 3Y48.31%
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