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SNOWFLAKE INC-CLASS A (SNOW) Stock Fundamental Analysis

NYSE:SNOW - New York Stock Exchange, Inc. - US8334451098 - Common Stock

173.53  +2.74 (+1.6%)

After market: 175 +1.47 (+0.85%)

Fundamental Rating

4

Overall SNOW gets a fundamental rating of 4 out of 10. We evaluated SNOW against 82 industry peers in the IT Services industry. SNOW scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SNOW shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

In the past year SNOW was profitable.
SNOW had a positive operating cash flow in the past year.
SNOW had negative earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: SNOW reported negative operating cash flow in multiple years.
SNOW Yearly Net Income VS EBIT VS OCF VS FCFSNOW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 500M -500M -1B

1.2 Ratios

SNOW's Return On Assets of -13.75% is on the low side compared to the rest of the industry. SNOW is outperformed by 74.68% of its industry peers.
Looking at the Return On Equity, with a value of -38.49%, SNOW is doing worse than 69.62% of the companies in the same industry.
Industry RankSector Rank
ROA -13.75%
ROE -38.49%
ROIC N/A
ROA(3y)-10.24%
ROA(5y)-14.85%
ROE(3y)-14.74%
ROE(5y)-28.82%
ROIC(3y)N/A
ROIC(5y)N/A
SNOW Yearly ROA, ROE, ROICSNOW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 -20 -40 -60 -80

1.3 Margins

Looking at the Gross Margin, with a value of 67.33%, SNOW belongs to the top of the industry, outperforming 84.81% of the companies in the same industry.
In the last couple of years the Gross Margin of SNOW has grown nicely.
SNOW does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 67.33%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.82%
GM growth 5Y7.92%
SNOW Yearly Profit, Operating, Gross MarginsSNOW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 50 -50 -100 -150

4

2. Health

2.1 Basic Checks

SNOW does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, SNOW has more shares outstanding
The number of shares outstanding for SNOW has been increased compared to 5 years ago.
There is no outstanding debt for SNOW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
SNOW Yearly Shares OutstandingSNOW Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 100M 200M 300M
SNOW Yearly Total Debt VS Total AssetsSNOW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

The Debt to FCF ratio of SNOW is 2.86, which is a good value as it means it would take SNOW, 2.86 years of fcf income to pay off all of its debts.
SNOW's Debt to FCF ratio of 2.86 is fine compared to the rest of the industry. SNOW outperforms 63.29% of its industry peers.
SNOW has a Debt/Equity ratio of 0.77. This is a neutral value indicating SNOW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.77, SNOW is not doing good in the industry: 65.82% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 2.86
Altman-Z N/A
ROIC/WACCN/A
WACC11.68%
SNOW Yearly LT Debt VS Equity VS FCFSNOW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B 5B

2.3 Liquidity

A Current Ratio of 1.88 indicates that SNOW should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.88, SNOW is doing good in the industry, outperforming 60.76% of the companies in the same industry.
SNOW has a Quick Ratio of 1.88. This is a normal value and indicates that SNOW is financially healthy and should not expect problems in meeting its short term obligations.
SNOW's Quick ratio of 1.88 is fine compared to the rest of the industry. SNOW outperforms 60.76% of its industry peers.
Industry RankSector Rank
Current Ratio 1.88
Quick Ratio 1.88
SNOW Yearly Current Assets VS Current LiabilitesSNOW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

8

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 14.47% over the past year.
Looking at the last year, SNOW shows a very strong growth in Revenue. The Revenue has grown by 30.28%.
SNOW shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 96.13% yearly.
EPS 1Y (TTM)14.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20%
Revenue 1Y (TTM)30.28%
Revenue growth 3Y67.99%
Revenue growth 5Y96.13%
Sales Q2Q%28.32%

3.2 Future

SNOW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.15% yearly.
The Revenue is expected to grow by 24.45% on average over the next years. This is a very strong growth
EPS Next Y-25.98%
EPS Next 2Y2.01%
EPS Next 3Y13.93%
EPS Next 5Y32.15%
Revenue Next Year28.61%
Revenue Next 2Y25.75%
Revenue Next 3Y24.58%
Revenue Next 5Y24.45%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
SNOW Yearly Revenue VS EstimatesSNOW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2B 4B 6B 8B 10B
SNOW Yearly EPS VS EstimatesSNOW Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 0 2 4 6 8 10

1

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 199.46 indicates a quite expensive valuation of SNOW.
Based on the Price/Earnings ratio, SNOW is valued a bit more expensive than the industry average as 60.76% of the companies are valued more cheaply.
SNOW is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 171.92, the valuation of SNOW can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SNOW indicates a slightly more expensive valuation: SNOW is more expensive than 60.76% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SNOW to the average of the S&P500 Index (24.44), we can say SNOW is valued expensively.
Industry RankSector Rank
PE 199.46
Fwd PE 171.92
SNOW Price Earnings VS Forward Price EarningsSNOW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

SNOW's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 72.23
EV/EBITDA N/A
SNOW Per share dataSNOW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

SNOW's earnings are expected to grow with 13.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.01%
EPS Next 3Y13.93%

0

5. Dividend

5.1 Amount

No dividends for SNOW!.
Industry RankSector Rank
Dividend Yield N/A

SNOWFLAKE INC-CLASS A

NYSE:SNOW (1/21/2025, 8:04:01 PM)

After market: 175 +1.47 (+0.85%)

173.53

+2.74 (+1.6%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-20 2024-11-20/amc
Earnings (Next)N/A N/A
Inst Owners62.74%
Inst Owner Change-1.06%
Ins Owners3.09%
Ins Owner Change-0.93%
Market Cap57.28B
Analysts78.43
Price Target195.74 (12.8%)
Short Float %3.25%
Short Ratio1.45
Dividend
Industry RankSector 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)20.05%
Min EPS beat(2)11.42%
Max EPS beat(2)28.68%
EPS beat(4)3
Avg EPS beat(4)27.54%
Min EPS beat(4)-24.62%
Max EPS beat(4)94.7%
EPS beat(8)7
Avg EPS beat(8)84.23%
EPS beat(12)10
Avg EPS beat(12)138.18%
EPS beat(16)14
Avg EPS beat(16)121.21%
Revenue beat(2)2
Avg Revenue beat(2)1.51%
Min Revenue beat(2)0.06%
Max Revenue beat(2)2.97%
Revenue beat(4)4
Avg Revenue beat(4)1.61%
Min Revenue beat(4)0.03%
Max Revenue beat(4)3.38%
Revenue beat(8)7
Avg Revenue beat(8)1%
Revenue beat(12)11
Avg Revenue beat(12)1.24%
Revenue beat(16)15
Avg Revenue beat(16)2.27%
PT rev (1m)1.08%
PT rev (3m)15.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8%
EPS NY rev (1m)0%
EPS NY rev (3m)14.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.74%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)1.81%
Valuation
Industry RankSector Rank
PE 199.46
Fwd PE 171.92
P/S 16.78
P/FCF 72.23
P/OCF 65.72
P/B 19.55
P/tB 34.3
EV/EBITDA N/A
EPS(TTM)0.87
EY0.5%
EPS(NY)1.01
Fwd EY0.58%
FCF(TTM)2.4
FCFY1.38%
OCF(TTM)2.64
OCFY1.52%
SpS10.34
BVpS8.87
TBVpS5.06
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -13.75%
ROE -38.49%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 67.33%
FCFM 23.23%
ROA(3y)-10.24%
ROA(5y)-14.85%
ROE(3y)-14.74%
ROE(5y)-28.82%
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 3Y4.82%
GM growth 5Y7.92%
F-Score5
Asset Turnover0.42
Health
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 2.86
Debt/EBITDA N/A
Cap/Depr 46.92%
Cap/Sales 2.3%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.88
Quick Ratio 1.88
Altman-Z N/A
F-Score5
WACC11.68%
ROIC/WACCN/A
Cap/Depr(3y)136.01%
Cap/Depr(5y)311.28%
Cap/Sales(3y)3.42%
Cap/Sales(5y)5.42%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20%
EPS Next Y-25.98%
EPS Next 2Y2.01%
EPS Next 3Y13.93%
EPS Next 5Y32.15%
Revenue 1Y (TTM)30.28%
Revenue growth 3Y67.99%
Revenue growth 5Y96.13%
Sales Q2Q%28.32%
Revenue Next Year28.61%
Revenue Next 2Y25.75%
Revenue Next 3Y24.58%
Revenue Next 5Y24.45%
EBIT growth 1Y-25.03%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year72.38%
EBIT Next 3Y49.15%
EBIT Next 5Y65.86%
FCF growth 1Y127.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y114.04%
OCF growth 3YN/A
OCF growth 5YN/A