SNAP INC - A (SNAP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SNAP - US83304A1060 - Common Stock
8.21 USD
-0.19 (-2.26%)
8.22 USD
+0.01 (+0.12%)
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 overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year SNAP was profitable.
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
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
With a Gross Margin value of 54.28%, SNAP perfoms like the industry average, outperforming 44.29% of the companies in the same industry.
In the last couple of years the Gross Margin of SNAP has grown nicely.
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%
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
SNAP has a better debt/assets ratio than last year.
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.
The Altman-Z score of SNAP (0.06) is worse than 62.86% 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.
The Debt to FCF ratio of SNAP (8.55) is comparable to the rest of the industry.
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: 78.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 8.55 | ||
| Altman-Z | 0.06 |
ROIC/WACCN/A
WACC7.04%
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.
Looking at the Current ratio, with a value of 3.67, SNAP belongs to the top of the industry, outperforming 81.43% of the companies in the same industry.
A Quick Ratio of 3.67 indicates that SNAP has no problem at all paying its short term obligations.
The Quick ratio of SNAP (3.67) is better than 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.
The earnings per share for SNAP have been decreasing by -16.04% on average. This is quite bad
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
SNAP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.43% yearly.
The Revenue is expected to grow by 9.52% on average over the next years. This is quite good.
EPS Next Y11.14%
EPS Next 2Y30.68%
EPS Next 3Y29.4%
EPS Next 5Y24.43%
Revenue Next Year10.51%
Revenue Next 2Y12.6%
Revenue Next 3Y11.3%
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.
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
The Price/Earnings ratio is 24.88, which indicates a rather expensive current valuation of SNAP.
Compared to the rest of the industry, the Price/Earnings ratio of SNAP indicates a somewhat cheap valuation: SNAP is cheaper than 62.86% of the companies listed in the same industry.
SNAP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 16.58, which indicates a correct valuation of SNAP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SNAP indicates a somewhat cheap valuation: SNAP is cheaper than 64.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, SNAP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.88 | ||
| Fwd PE | 16.58 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SNAP is valued a bit cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.1 | ||
| 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.
SNAP's earnings are expected to grow with 29.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.23
PEG (5Y)N/A
EPS Next 2Y30.68%
EPS Next 3Y29.4%
5. Dividend
5.1 Amount
SNAP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
8.21
-0.19 (-2.26%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners52.35%
Inst Owner Change0.56%
Ins Owners7.39%
Ins Owner Change-6%
Market Cap14.12B
Revenue(TTM)5.77B
Net Income(TTM)-496.60M
Analysts64
Price Target10.03 (22.17%)
Short Float %6.68%
Short Ratio1.7
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)0.14%
PT rev (3m)5.73%
EPS NQ rev (1m)-2.03%
EPS NQ rev (3m)9.58%
EPS NY rev (1m)-1%
EPS NY rev (3m)20.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.88 | ||
| Fwd PE | 16.58 | ||
| P/S | 2.45 | ||
| P/FCF | 34.1 | ||
| P/OCF | 22.87 | ||
| P/B | 6.34 | ||
| P/tB | 32.87 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.33
EY4.02%
EPS(NY)0.5
Fwd EY6.03%
FCF(TTM)0.24
FCFY2.93%
OCF(TTM)0.36
OCFY4.37%
SpS3.36
BVpS1.3
TBVpS0.25
PEG (NY)2.23
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 | 0.06 |
F-Score7
WACC7.04%
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 Y11.14%
EPS Next 2Y30.68%
EPS Next 3Y29.4%
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 2Y12.6%
Revenue Next 3Y11.3%
Revenue Next 5Y9.52%
EBIT growth 1Y35.17%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year173.95%
EBIT Next 3Y51.27%
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 for 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 24.88 and the Price/Book (PB) ratio is 6.34.
How financially healthy is SNAP INC - A?
The financial health rating of SNAP INC - A (SNAP) is 4 / 10.