Overall SNAP gets a fundamental rating of 4 out of 10. We evaluated SNAP against 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.
SNAP had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

The Return On Assets of SNAP (-6.55%) is worse than 60.00% of its industry peers.
SNAP has a Return On Equity of -22.30%. This is in the lower half of the industry: SNAP underperforms 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's Gross Margin of 54.28% is in line compared to the rest of the industry. SNAP outperforms 44.29% of 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.
SNAP has more shares outstanding than it did 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 -0.06, we must say that SNAP is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.06, SNAP is not doing good in the industry: 65.71% of the companies in the same industry are doing better.
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.
Looking at the Debt to FCF ratio, with a value of 8.55, SNAP is in line with its industry, outperforming 60.00% of the companies in the same industry.
A Debt/Equity ratio of 1.57 is on the high side and indicates that SNAP has dependencies on debt financing.
SNAP has a Debt to Equity ratio of 1.57. This is in the lower half of the industry: SNAP underperforms 78.57% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.57
Debt/FCF	8.55
Altman-Z	-0.06

ROIC/WACCN/A

WACC6.97%

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's Current ratio of 3.67 is amongst the best of 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's Quick ratio of 3.67 is amongst the best of the industry. SNAP outperforms 81.43% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.67
Quick Ratio	3.67

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WACC

Debt/Equity

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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.
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
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

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 23.09 indicates a rather expensive valuation of SNAP.
SNAP's Price/Earnings ratio is a bit cheaper when compared to the industry. SNAP is cheaper than 62.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. SNAP is around the same levels.
A Price/Forward Earnings ratio of 15.39 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, SNAP is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	23.09
Fwd PE	15.39

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	31.65
EV/EBITDA	N/A

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SNAP does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as SNAP's earnings are expected to grow with 29.40% in the coming years.