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 not priced too expensively while it is growing strongly. Keep and eye on this one!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

Looking at the Return On Assets, with a value of -6.55%, SNAP is doing worse than 60.00% of the companies in the same industry.
The Return On Equity of SNAP (-22.30%) is worse than 60.00% 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

SNAP has a Gross Margin (54.28%) which is in line with its industry peers.
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	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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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 -0.13, we must say that SNAP is in the distress zone and has some risk of bankruptcy.
SNAP has a worse Altman-Z score (-0.13) than 67.14% 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 has a Debt to FCF ratio (8.55) which is in line with its industry peers.
A Debt/Equity ratio of 1.57 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 1.57, SNAP is doing worse than 78.57% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	1.57
Debt/FCF	8.55
Altman-Z	-0.13

ROIC/WACCN/A

WACC6.83%

2.3 Liquidity

SNAP has a Current Ratio of 3.67. This indicates that SNAP is financially healthy and has no problem in meeting 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.
A Quick Ratio of 3.67 indicates that SNAP has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.67, SNAP belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	3.67
Quick Ratio	3.67

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 56.67% over the past year.
Measured over the past years, SNAP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.04% on average per year.
The Revenue has grown by 11.75% in the past year. This is quite good.
The Revenue has been growing by 25.60% on average over the past years. This is a very strong growth!

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
The Revenue is expected to grow by 9.52% on average over the next years. This is quite good.

EPS Next Y11.85%

EPS Next 2Y30.68%

EPS Next 3Y29.4%

EPS Next 5Y24.43%

Revenue Next Year10.51%

Revenue Next 2Y12.49%

Revenue Next 3Y11.15%

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.

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4. Valuation

4.1 Price/Earnings Ratio

SNAP is valuated rather expensively with a Price/Earnings ratio of 21.00.
Compared to the rest of the industry, the Price/Earnings ratio of SNAP indicates a somewhat cheap valuation: SNAP is cheaper than 64.29% of the companies listed in the same industry.
SNAP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.30.
The Price/Forward Earnings ratio is 13.99, which indicates a correct valuation of SNAP.
Based on the Price/Forward Earnings ratio, SNAP is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
SNAP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	21
Fwd PE	13.99

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, SNAP is valued a bit cheaper than the industry average as 62.86% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	28.78
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.
SNAP's earnings are expected to grow with 29.40% in the coming years. This may justify a more expensive valuation.