SNAP INC - A (SNAP) Stock Fundamental Analysis
NYSE:SNAP - New York Stock Exchange, Inc. - US83304A1060 - Common Stock - Currency: USD
SNAP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 70 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 shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year SNAP was profitable.
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 worse Return On Assets (-7.01%) than 61.43% of its industry peers.
SNAP has a worse Return On Equity (-23.03%) than 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.01% | ||
| ROE | -23.03% | ||
| 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 (54.09%) is worse than 61.43% of its industry peers.
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 | 54.09% |
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
Based on the Altman-Z score of 0.36, we must say that SNAP is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.36, SNAP is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
The Debt to FCF ratio of SNAP is 12.24, which is on the high side as it means it would take SNAP, 12.24 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 12.24, SNAP perfoms like the industry average, outperforming 52.86% of the companies in the same industry.
A Debt/Equity ratio of 1.55 is on the high side and indicates that SNAP has dependencies on debt financing.
SNAP's Debt to Equity ratio of 1.55 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 | 1.55 | ||
| Debt/FCF | 12.24 | ||
| Altman-Z | 0.36 |
ROIC/WACCN/A
WACC7.49%
2.3 Liquidity
SNAP has a Current Ratio of 4.30. This indicates that SNAP is financially healthy and has no problem in meeting its short term obligations.
SNAP's Current ratio of 4.30 is fine compared to the rest of the industry. SNAP outperforms 80.00% of its industry peers.
A Quick Ratio of 4.30 indicates that SNAP has no problem at all paying its short term obligations.
SNAP's Quick ratio of 4.30 is amongst the best of the industry. SNAP outperforms 81.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.3 | ||
| Quick Ratio | 4.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 200.00% 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.
Looking at the last year, SNAP shows a quite strong growth in Revenue. The Revenue has grown by 14.91% in the last year.
SNAP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.60% yearly.
EPS 1Y (TTM)200%
EPS 3Y-16.04%
EPS 5YN/A
EPS Q2Q%133.33%
Revenue 1Y (TTM)14.91%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%14.1%
3.2 Future
Based on estimates for the next years, SNAP will show a very strong growth in Earnings Per Share. The EPS will grow by 27.88% on average per year.
Based on estimates for the next years, SNAP will show a quite strong growth in Revenue. The Revenue will grow by 10.04% on average per year.
EPS Next Y-3.14%
EPS Next 2Y17%
EPS Next 3Y24.89%
EPS Next 5Y27.88%
Revenue Next Year9.14%
Revenue Next 2Y9.94%
Revenue Next 3Y10.43%
Revenue Next 5Y10.04%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.09 indicates a quite expensive valuation of SNAP.
SNAP's Price/Earnings ratio is in line with the industry average.
SNAP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.35 indicates a rather expensive valuation of SNAP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SNAP is on the same level as its industry peers.
SNAP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 23.35 |
4.2 Price Multiples
SNAP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.49 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as SNAP's earnings are expected to grow with 24.89% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17%
EPS Next 3Y24.89%
5. Dividend
5.1 Amount
No dividends for SNAP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.27
-0.11 (-1.17%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners63.91%
Inst Owner Change4.53%
Ins Owners7.92%
Ins Owner Change-0.06%
Market Cap15.49B
Analysts64.8
Price Target9.79 (5.61%)
Short Float %9.62%
Short Ratio2.7
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)62.53%
Min EPS beat(2)13.12%
Max EPS beat(2)111.94%
EPS beat(4)4
Avg EPS beat(4)46.21%
Min EPS beat(4)0.45%
Max EPS beat(4)111.94%
EPS beat(8)8
Avg EPS beat(8)71.54%
EPS beat(12)11
Avg EPS beat(12)124.82%
EPS beat(16)14
Avg EPS beat(16)163.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.01%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)-0.71%
Revenue beat(8)2
Avg Revenue beat(8)0.01%
Revenue beat(12)2
Avg Revenue beat(12)-1.14%
Revenue beat(16)4
Avg Revenue beat(16)-0.1%
PT rev (1m)-1.51%
PT rev (3m)-25.36%
EPS NQ rev (1m)32.55%
EPS NQ rev (3m)-93.08%
EPS NY rev (1m)12.31%
EPS NY rev (3m)-22.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.06%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-4.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 23.35 | ||
| P/S | 2.8 | ||
| P/FCF | 52.49 | ||
| P/OCF | 32.5 | ||
| P/B | 6.7 | ||
| P/tB | 28.44 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.33
EY3.56%
EPS(NY)0.4
Fwd EY4.28%
FCF(TTM)0.18
FCFY1.91%
OCF(TTM)0.29
OCFY3.08%
SpS3.31
BVpS1.38
TBVpS0.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.01% | ||
| ROE | -23.03% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 54.09% | ||
| FCFM | 5.34% |
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 Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 12.24 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 117.86% | ||
| Cap/Sales | 3.28% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.3 | ||
| Quick Ratio | 4.3 | ||
| Altman-Z | 0.36 |
F-Score7
WACC7.49%
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)200%
EPS 3Y-16.04%
EPS 5YN/A
EPS Q2Q%133.33%
EPS Next Y-3.14%
EPS Next 2Y17%
EPS Next 3Y24.89%
EPS Next 5Y27.88%
Revenue 1Y (TTM)14.91%
Revenue growth 3Y9.2%
Revenue growth 5Y25.6%
Sales Q2Q%14.1%
Revenue Next Year9.14%
Revenue Next 2Y9.94%
Revenue Next 3Y10.43%
Revenue Next 5Y10.04%
EBIT growth 1Y50.24%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year160.68%
EBIT Next 3Y49.52%
EBIT Next 5Y34.57%
FCF growth 1Y462.23%
FCF growth 3Y-0.65%
FCF growth 5YN/A
OCF growth 1Y128.92%
OCF growth 3Y12.18%
OCF growth 5YN/A