SNAP INC - A (SNAP) Stock Fundamental Analysis
USA - NYSE:SNAP - US83304A1060 - Common Stock
7.3 USD
-0.17 (-2.28%)
8.2899 USD
+0.99 (+13.56%)
Overall SNAP gets a fundamental rating of 4 out of 10. We evaluated SNAP against 70 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
SNAP had positive earnings in the past year.
In the past year SNAP had a positive cash flow from operations.
SNAP had negative earnings in each of the past 5 years.
SNAP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SNAP's Return On Assets of -7.38% is on the low side compared to the rest of the industry. SNAP is outperformed by 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.
Compared to 1 year ago, SNAP has more shares outstanding
The number of shares outstanding for SNAP has been increased compared to 5 years ago.
The debt/assets ratio for SNAP has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.17, we must say that SNAP is in the distress zone and has some risk of bankruptcy.
SNAP has a Altman-Z score of -0.17. This is in the lower half of the industry: SNAP underperforms 64.29% of its industry peers.
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.
SNAP's Debt to Equity ratio of 1.73 is on the low side compared to the rest of the industry. SNAP is outperformed by 81.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | -0.17 |
ROIC/WACCN/A
WACC9.07%
2.3 Liquidity
A Current Ratio of 3.88 indicates that SNAP has no problem at all paying its short term obligations.
The Current ratio of SNAP (3.88) is better than 81.43% of its industry peers.
SNAP has a Quick Ratio of 3.88. This indicates that SNAP is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.88, SNAP belongs to the top of the industry, outperforming 81.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
SNAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 106.00%, 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.
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
The Earnings Per Share is expected to grow by 26.47% 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 9.66% yearly.
EPS Next Y-8.9%
EPS Next 2Y13.11%
EPS Next 3Y24.35%
EPS Next 5Y26.47%
Revenue Next Year9.98%
Revenue Next 2Y10.32%
Revenue Next 3Y10.48%
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
The Price/Earnings ratio is 23.55, which indicates a rather expensive current 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's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.13.
Based on the Price/Forward Earnings ratio of 19.67, the valuation of SNAP can be described as rather expensive.
SNAP's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, SNAP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.55 | ||
| Fwd PE | 19.67 |
4.2 Price Multiples
62.86% of the companies in the same industry are more expensive than SNAP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.44 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SNAP's earnings are expected to grow with 24.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.11%
EPS Next 3Y24.35%
5. Dividend
5.1 Amount
No dividends for SNAP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.3
-0.17 (-2.28%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners60.14%
Inst Owner Change-0.65%
Ins Owners7.54%
Ins Owner Change-3.64%
Market Cap12.34B
Revenue(TTM)5.64B
Net Income(TTM)-546303000
Analysts64.31
Price Target9.45 (29.45%)
Short Float %7.23%
Short Ratio0.79
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)-1.51%
PT rev (3m)-5.01%
EPS NQ rev (1m)-2.06%
EPS NQ rev (3m)9.43%
EPS NY rev (1m)-1.15%
EPS NY rev (3m)-6.54%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.55 | ||
| Fwd PE | 19.67 | ||
| P/S | 2.19 | ||
| P/FCF | 31.44 | ||
| P/OCF | 21.03 | ||
| P/B | 5.96 | ||
| P/tB | 47.49 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.31
EY4.25%
EPS(NY)0.37
Fwd EY5.08%
FCF(TTM)0.23
FCFY3.18%
OCF(TTM)0.35
OCFY4.76%
SpS3.34
BVpS1.22
TBVpS0.15
PEG (NY)N/A
PEG (5Y)N/A
Graham Number2.92
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
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 | 1.73 | ||
| 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 | -0.17 |
F-Score7
WACC9.07%
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-8.9%
EPS Next 2Y13.11%
EPS Next 3Y24.35%
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 2Y10.32%
Revenue Next 3Y10.48%
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
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 3 / 10 to SNAP INC - A (SNAP). This can be considered as Overvalued.
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 23.55 and the Price/Book (PB) ratio is 5.96.