SNAP INC - A (SNAP) Stock Fundamental Analysis
NYSE:SNAP - New York Stock Exchange, Inc. - US83304A1060 - Common Stock - Currency: USD
Taking everything into account, SNAP scores 4 out of 10 in our fundamental rating. SNAP was compared to 71 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 expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
SNAP had positive earnings in the past year.
In the past year SNAP had a positive cash flow from operations.
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
The Return On Assets of SNAP (-8.79%) is comparable to the rest of the industry.
SNAP has a Return On Equity (-28.48%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.79% | ||
| ROE | -28.48% | ||
| 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
Looking at the Gross Margin, with a value of 53.87%, SNAP is in line with its industry, outperforming 40.91% of the companies in the same industry.
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 | 53.87% |
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 0.60. 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 0.60, SNAP is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
SNAP has a debt to FCF ratio of 16.67. This is a negative value and a sign of low solvency as SNAP would need 16.67 years to pay back of all of its debts.
With a Debt to FCF ratio value of 16.67, SNAP perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
SNAP has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
SNAP's Debt to Equity ratio of 1.47 is on the low side compared to the rest of the industry. SNAP is outperformed by 80.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 16.67 | ||
| Altman-Z | 0.6 |
ROIC/WACCN/A
WACC8%
2.3 Liquidity
SNAP has a Current Ratio of 3.95. This indicates that SNAP is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.95, SNAP belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
SNAP has a Quick Ratio of 3.95. This indicates that SNAP is financially healthy and has no problem in meeting its short term obligations.
SNAP has a Quick ratio of 3.95. This is amongst the best in the industry. SNAP outperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.95 | ||
| Quick Ratio | 3.95 |
3. Growth
3.1 Past
SNAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 222.22%, which is quite impressive.
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 16.40% 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)222.22%
EPS 3Y-16.04%
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)16.4%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%14.4%
3.2 Future
SNAP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.70% yearly.
Based on estimates for the next years, SNAP will show a quite strong growth in Revenue. The Revenue will grow by 11.49% on average per year.
EPS Next Y27.49%
EPS Next 2Y36.55%
EPS Next 3Y38.82%
EPS Next 5Y32.7%
Revenue Next Year13.83%
Revenue Next 2Y13.35%
Revenue Next 3Y12.85%
Revenue Next 5Y11.49%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 35.66 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 is valuated rather expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
SNAP is valuated quite expensively with a Price/Forward Earnings ratio of 27.97.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SNAP is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.68. SNAP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.66 | ||
| Fwd PE | 27.97 |
4.2 Price Multiples
SNAP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.22 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SNAP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as SNAP's earnings are expected to grow with 38.82% in the coming years.
PEG (NY)1.3
PEG (5Y)N/A
EPS Next 2Y36.55%
EPS Next 3Y38.82%
5. Dividend
5.1 Amount
SNAP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.34
-0.34 (-3.18%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners59.13%
Inst Owner Change-95.2%
Ins Owners7.86%
Ins Owner Change1.86%
Market Cap17.54B
Analysts66.53
Price Target13.11 (26.79%)
Short Float %5.67%
Short Ratio2.01
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)36.22%
Min EPS beat(2)13.12%
Max EPS beat(2)59.32%
EPS beat(4)4
Avg EPS beat(4)58.81%
Min EPS beat(4)0.45%
Max EPS beat(4)162.34%
EPS beat(8)8
Avg EPS beat(8)89.91%
EPS beat(12)10
Avg EPS beat(12)82.59%
EPS beat(16)14
Avg EPS beat(16)162.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.11%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)-0.9%
Revenue beat(4)1
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)4.62%
Revenue beat(8)2
Avg Revenue beat(8)-0.39%
Revenue beat(12)2
Avg Revenue beat(12)-1.3%
Revenue beat(16)5
Avg Revenue beat(16)0.04%
PT rev (1m)-0.68%
PT rev (3m)-1.19%
EPS NQ rev (1m)-17.96%
EPS NQ rev (3m)203.92%
EPS NY rev (1m)-13.2%
EPS NY rev (3m)-10.81%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)6.1%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.66 | ||
| Fwd PE | 27.97 | ||
| P/S | 3.27 | ||
| P/FCF | 80.22 | ||
| P/OCF | 42.42 | ||
| P/B | 7.16 | ||
| P/tB | 26 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.29
EY2.8%
EPS(NY)0.37
Fwd EY3.58%
FCF(TTM)0.13
FCFY1.25%
OCF(TTM)0.24
OCFY2.36%
SpS3.16
BVpS1.44
TBVpS0.4
PEG (NY)1.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.79% | ||
| ROE | -28.48% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 53.87% | ||
| FCFM | 4.08% |
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-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 16.67 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 123.25% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.95 | ||
| Quick Ratio | 3.95 | ||
| Altman-Z | 0.6 |
F-Score6
WACC8%
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)222.22%
EPS 3Y-16.04%
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y27.49%
EPS Next 2Y36.55%
EPS Next 3Y38.82%
EPS Next 5Y32.7%
Revenue 1Y (TTM)16.4%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%14.4%
Revenue Next Year13.83%
Revenue Next 2Y13.35%
Revenue Next 3Y12.85%
Revenue Next 5Y11.49%
EBIT growth 1Y48.72%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year188.09%
EBIT Next 3Y56.32%
EBIT Next 5Y37.94%
FCF growth 1Y528.42%
FCF growth 3Y-0.65%
FCF growth 5YN/A
OCF growth 1Y67.73%
OCF growth 3Y12.18%
OCF growth 5YN/A