SNAP INC - A (SNAP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SNAP - US83304A1060 - Common Stock
7.26 USD
-0.05 (-0.68%)
7.2308 USD
-0.03 (-0.4%)
We assign a fundamental rating of 4 out of 10 to SNAP. 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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
With a Return On Assets value of -6.55%, SNAP is not doing good in the industry: 61.43% of the companies in the same industry are doing better.
SNAP's Return On Equity of -22.30% is on the low side compared to the rest of the industry. SNAP is outperformed by 61.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.55% | ||
| ROE | -22.3% | ||
| 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
The Gross Margin of SNAP (54.28%) is comparable to the rest of the 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 | 54.29% |
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.
Compared to 5 years ago, SNAP has more shares outstanding
Compared to 1 year ago, SNAP has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.12, we must say that SNAP is in the distress zone and has some risk of bankruptcy.
SNAP has a Altman-Z score of -0.12. This is in the lower half of the industry: SNAP underperforms 64.29% of its industry peers.
The Debt to FCF ratio of SNAP is 8.55, which is on the high side as it means it would take SNAP, 8.55 years of fcf income to pay off all of its debts.
SNAP's Debt to FCF ratio of 8.55 is in line compared to the rest of the industry. SNAP outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 1.57 is on the high side and indicates that SNAP has dependencies on debt financing.
With a Debt to Equity ratio value of 1.57, SNAP is not doing good in the industry: 81.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 8.55 | ||
| Altman-Z | -0.12 |
ROIC/WACCN/A
WACC9.19%
2.3 Liquidity
A Current Ratio of 3.67 indicates that SNAP has no problem at all paying its short term obligations.
SNAP has a Current ratio of 3.67. This is amongst the best in the industry. SNAP outperforms 81.43% of its industry peers.
SNAP has a Quick Ratio of 3.67. This indicates that SNAP is financially healthy and has no problem in meeting its short term obligations.
SNAP has a Quick ratio of 3.67. This is amongst the best in the industry. SNAP outperforms 81.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.67 | ||
| Quick Ratio | 3.67 |
3. Growth
3.1 Past
SNAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.67%, which is quite impressive.
SNAP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.04% yearly.
SNAP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.75%.
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)56.67%
EPS 3Y-16.04%
EPS 5YN/A
EPS Q2Q%25%
Revenue 1Y (TTM)11.75%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%9.78%
3.2 Future
The Earnings Per Share is expected to grow by 24.43% on average over the next years. This is a very strong growth
SNAP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.52% yearly.
EPS Next Y12.27%
EPS Next 2Y31.73%
EPS Next 3Y30.25%
EPS Next 5Y24.43%
Revenue Next Year10.51%
Revenue Next 2Y12.49%
Revenue Next 3Y11.2%
Revenue Next 5Y9.52%
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
A Price/Earnings ratio of 22.00 indicates a rather expensive valuation of SNAP.
Based on the Price/Earnings ratio, SNAP is valued a bit cheaper than 62.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of SNAP to the average of the S&P500 Index (26.55), we can say SNAP is valued inline with the index average.
SNAP is valuated correctly with a Price/Forward Earnings ratio of 14.43.
SNAP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SNAP is cheaper than 68.57% of the companies in the same industry.
SNAP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 14.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SNAP indicates a somewhat cheap valuation: SNAP is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.15 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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 30.25% in the coming years.
PEG (NY)1.79
PEG (5Y)N/A
EPS Next 2Y31.73%
EPS Next 3Y30.25%
5. Dividend
5.1 Amount
SNAP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
7.26
-0.05 (-0.68%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners52.73%
Inst Owner Change-12.78%
Ins Owners7.48%
Ins Owner Change-3.02%
Market Cap12.48B
Revenue(TTM)5.77B
Net Income(TTM)-496.60M
Analysts64
Price Target10.02 (38.02%)
Short Float %7.11%
Short Ratio0.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-11.78%
Min EPS beat(2)-107.59%
Max EPS beat(2)84.04%
EPS beat(4)3
Avg EPS beat(4)25.38%
Min EPS beat(4)-107.59%
Max EPS beat(4)111.94%
EPS beat(8)7
Avg EPS beat(8)43.56%
EPS beat(12)11
Avg EPS beat(12)69.03%
EPS beat(16)13
Avg EPS beat(16)74.09%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-2.12%
Max Revenue beat(4)-0.71%
Revenue beat(8)1
Avg Revenue beat(8)-0.92%
Revenue beat(12)2
Avg Revenue beat(12)-0.77%
Revenue beat(16)3
Avg Revenue beat(16)-0.84%
PT rev (1m)6.01%
PT rev (3m)4.41%
EPS NQ rev (1m)8.56%
EPS NQ rev (3m)11.86%
EPS NY rev (1m)23.24%
EPS NY rev (3m)21.16%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 14.43 | ||
| P/S | 2.16 | ||
| P/FCF | 30.15 | ||
| P/OCF | 20.22 | ||
| P/B | 5.6 | ||
| P/tB | 29.06 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.33
EY4.55%
EPS(NY)0.5
Fwd EY6.93%
FCF(TTM)0.24
FCFY3.32%
OCF(TTM)0.36
OCFY4.94%
SpS3.36
BVpS1.3
TBVpS0.25
PEG (NY)1.79
PEG (5Y)N/A
Graham Number3.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.55% | ||
| ROE | -22.3% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 54.29% | ||
| FCFM | 7.17% |
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
ROICexgc growth 3YN/A
ROICexgc 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 | 1.57 | ||
| Debt/FCF | 8.55 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 127.15% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.67 | ||
| Quick Ratio | 3.67 | ||
| Altman-Z | -0.12 |
F-Score7
WACC9.19%
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)56.67%
EPS 3Y-16.04%
EPS 5YN/A
EPS Q2Q%25%
EPS Next Y12.27%
EPS Next 2Y31.73%
EPS Next 3Y30.25%
EPS Next 5Y24.43%
Revenue 1Y (TTM)11.75%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%9.78%
Revenue Next Year10.51%
Revenue Next 2Y12.49%
Revenue Next 3Y11.2%
Revenue Next 5Y9.52%
EBIT growth 1Y35.17%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year174.05%
EBIT Next 3Y51.29%
EBIT Next 5Y32.46%
FCF growth 1Y17860.6%
FCF growth 3Y-0.65%
FCF growth 5YN/A
OCF growth 1Y197.83%
OCF growth 3Y12.18%
OCF growth 5YN/A
SNAP INC - A / SNAP FAQ
What is the fundamental rating for SNAP stock?
ChartMill assigns a fundamental rating of 4 / 10 to SNAP.
What is the valuation status of SNAP INC - A (SNAP) stock?
ChartMill assigns a valuation rating of 4 / 10 to SNAP INC - A (SNAP). This can be considered as Fairly Valued.
How profitable is SNAP INC - A (SNAP) stock?
SNAP INC - A (SNAP) has a profitability rating of 2 / 10.
What is the valuation of SNAP INC - A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SNAP INC - A (SNAP) is 22 and the Price/Book (PB) ratio is 5.6.