SPLUNK INC (SPLK) Fundamental Analysis & Valuation
NASDAQ:SPLK • US8486371045
Current stock price
156.9 USD
+0.39 (+0.25%)
At close:
156.92 USD
+0.02 (+0.01%)
After Hours:
This SPLK fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. SPLK Profitability Analysis
1.1 Basic Checks
- SPLK had positive earnings in the past year.
- In the past year SPLK had a positive cash flow from operations.
- In the past 5 years SPLK reported 4 times negative net income.
- In multiple years SPLK reported negative operating cash flow during the last 5 years.
1.2 Ratios
- SPLK's Return On Assets of 3.94% is fine compared to the rest of the industry. SPLK outperforms 79.64% of its industry peers.
- Looking at the Return On Equity, with a value of 35.62%, SPLK belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
- SPLK's Return On Invested Capital of 5.74% is amongst the best of the industry. SPLK outperforms 81.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 35.62% | ||
| ROIC | 5.74% |
ROA(3y)-7.85%
ROA(5y)-9.04%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- SPLK has a better Profit Margin (6.26%) than 79.29% of its industry peers.
- With a decent Operating Margin value of 6.34%, SPLK is doing good in the industry, outperforming 76.07% of the companies in the same industry.
- With an excellent Gross Margin value of 79.80%, SPLK belongs to the best of the industry, outperforming 81.79% of the companies in the same industry.
- In the last couple of years the Gross Margin of SPLK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.34% | ||
| PM (TTM) | 6.26% | ||
| GM | 79.8% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.87%
GM growth 5Y-0.28%
2. SPLK Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SPLK is destroying value.
- Compared to 1 year ago, SPLK has more shares outstanding
- The number of shares outstanding for SPLK has been increased compared to 5 years ago.
- SPLK has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.98 indicates that SPLK is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.98, SPLK is in line with its industry, outperforming 57.14% of the companies in the same industry.
- SPLK has a debt to FCF ratio of 3.15. This is a good value and a sign of high solvency as SPLK would need 3.15 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 3.15, SPLK is doing good in the industry, outperforming 68.93% of the companies in the same industry.
- SPLK has a Debt/Equity ratio of 4.20. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of SPLK (4.20) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.2 | ||
| Debt/FCF | 3.15 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.62
WACC9.33%
2.3 Liquidity
- SPLK has a Current Ratio of 1.62. This is a normal value and indicates that SPLK is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.62, SPLK is in line with its industry, outperforming 48.93% of the companies in the same industry.
- A Quick Ratio of 1.62 indicates that SPLK should not have too much problems paying its short term obligations.
- SPLK has a Quick ratio (1.62) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. SPLK Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 105.68% over the past year.
- The Earnings Per Share has been growing by 32.69% on average over the past years. This is a very strong growth
- The Revenue has grown by 15.38% in the past year. This is quite good.
- SPLK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.51% yearly.
EPS 1Y (TTM)105.68%
EPS 3YN/A
EPS 5Y32.69%
EPS Q2Q%48.04%
Revenue 1Y (TTM)15.38%
Revenue growth 3Y23.66%
Revenue growth 5Y18.51%
Sales Q2Q%18.79%
3.2 Future
- The Earnings Per Share is expected to grow by 16.06% on average over the next years. This is quite good.
- Based on estimates for the next years, SPLK will show a quite strong growth in Revenue. The Revenue will grow by 16.00% on average per year.
EPS Next Y5.2%
EPS Next 2Y12.36%
EPS Next 3Y23.71%
EPS Next 5Y16.06%
Revenue Next Year15.29%
Revenue Next 2Y14.66%
Revenue Next 3Y14%
Revenue Next 5Y16%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 stable.
4. SPLK Valuation Analysis
4.1 Price/Earnings Ratio
- SPLK is valuated quite expensively with a Price/Earnings ratio of 28.90.
- Based on the Price/Earnings ratio, SPLK is valued a bit cheaper than the industry average as 79.64% of the companies are valued more expensively.
- SPLK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 27.47, which means the current valuation is very expensive for SPLK.
- Based on the Price/Forward Earnings ratio, SPLK is valued a bit cheaper than 75.36% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 21.68, SPLK is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.9 | ||
| Fwd PE | 27.47 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SPLK is valued a bit cheaper than 66.07% of the companies in the same industry.
- SPLK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SPLK is cheaper than 81.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.82 | ||
| EV/EBITDA | 76.39 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SPLK does not grow enough to justify the current Price/Earnings ratio.
- A more expensive valuation may be justified as SPLK's earnings are expected to grow with 23.71% in the coming years.
PEG (NY)5.56
PEG (5Y)0.88
EPS Next 2Y12.36%
EPS Next 3Y23.71%
5. SPLK Dividend Analysis
5.1 Amount
- No dividends for SPLK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SPLK Fundamentals: All Metrics, Ratios and Statistics
156.9
+0.39 (+0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry Strength6.21
Industry Growth67.7
Earnings (Last)02-27 2024-02-27/amc
Earnings (Next)05-22 2024-05-22/amc
Inst Owners8.43%
Inst Owner Change0%
Ins Owners1.38%
Ins Owner Change0%
Market Cap26.44B
Revenue(TTM)4.22B
Net Income(TTM)263.80M
Analysts66.32
Price Target153.96 (-1.87%)
Short Float %N/A
Short RatioN/A
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)41.29%
Min EPS beat(2)30.73%
Max EPS beat(2)51.85%
EPS beat(4)4
Avg EPS beat(4)93.63%
Min EPS beat(4)30.73%
Max EPS beat(4)236.74%
EPS beat(8)8
Avg EPS beat(8)107.12%
EPS beat(12)11
Avg EPS beat(12)109.14%
EPS beat(16)14
Avg EPS beat(16)118.87%
Revenue beat(2)2
Avg Revenue beat(2)7.85%
Min Revenue beat(2)1.65%
Max Revenue beat(2)14.06%
Revenue beat(4)4
Avg Revenue beat(4)4.62%
Min Revenue beat(4)0.76%
Max Revenue beat(4)14.06%
Revenue beat(8)8
Avg Revenue beat(8)6.3%
Revenue beat(12)12
Avg Revenue beat(12)5.84%
Revenue beat(16)13
Avg Revenue beat(16)3.4%
PT rev (1m)0%
PT rev (3m)0.89%
EPS NQ rev (1m)11.63%
EPS NQ rev (3m)30.86%
EPS NY rev (1m)11.32%
EPS NY rev (3m)19.58%
Revenue NQ rev (1m)1.21%
Revenue NQ rev (3m)1.43%
Revenue NY rev (1m)2.93%
Revenue NY rev (3m)4.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.9 | ||
| Fwd PE | 27.47 | ||
| P/S | 6.27 | ||
| P/FCF | 26.82 | ||
| P/OCF | 26.22 | ||
| P/B | 35.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 76.39 |
EPS(TTM)5.43
EY3.46%
EPS(NY)5.71
Fwd EY3.64%
FCF(TTM)5.85
FCFY3.73%
OCF(TTM)5.98
OCFY3.81%
SpS25.02
BVpS4.4
TBVpS-4.41
PEG (NY)5.56
PEG (5Y)0.88
Graham Number0 (-100%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 35.62% | ||
| ROCE | 6.47% | ||
| ROIC | 5.74% | ||
| ROICexc | 11.15% | ||
| ROICexgc | 36.93% | ||
| OM | 6.34% | ||
| PM (TTM) | 6.26% | ||
| GM | 79.8% | ||
| FCFM | 23.38% |
ROA(3y)-7.85%
ROA(5y)-9.04%
ROE(3y)N/A
ROE(5y)N/A
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 3Y1.87%
GM growth 5Y-0.28%
F-Score8
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.2 | ||
| Debt/FCF | 3.15 | ||
| Debt/EBITDA | 8.73 | ||
| Cap/Depr | 25.62% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 283.41% | ||
| Profit Quality | 373.63% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 2.98 |
F-Score8
WACC9.33%
ROIC/WACC0.62
Cap/Depr(3y)22.77%
Cap/Depr(5y)55.33%
Cap/Sales(3y)0.63%
Cap/Sales(5y)1.72%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)105.68%
EPS 3YN/A
EPS 5Y32.69%
EPS Q2Q%48.04%
EPS Next Y5.2%
EPS Next 2Y12.36%
EPS Next 3Y23.71%
EPS Next 5Y16.06%
Revenue 1Y (TTM)15.38%
Revenue growth 3Y23.66%
Revenue growth 5Y18.51%
Sales Q2Q%18.79%
Revenue Next Year15.29%
Revenue Next 2Y14.66%
Revenue Next 3Y14%
Revenue Next 5Y16%
EBIT growth 1Y213.43%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year55.76%
EBIT Next 3Y18.62%
EBIT Next 5YN/A
FCF growth 1Y130.72%
FCF growth 3YN/A
FCF growth 5Y29.25%
OCF growth 1Y124.28%
OCF growth 3YN/A
OCF growth 5Y27.74%
SPLUNK INC / SPLK Fundamental Analysis FAQ
What is the ChartMill fundamental rating of SPLUNK INC (SPLK) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SPLK.
What is the valuation status for SPLK stock?
ChartMill assigns a valuation rating of 4 / 10 to SPLUNK INC (SPLK). This can be considered as Fairly Valued.
How profitable is SPLUNK INC (SPLK) stock?
SPLUNK INC (SPLK) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for SPLK stock?
The Price/Earnings (PE) ratio for SPLUNK INC (SPLK) is 28.9 and the Price/Book (PB) ratio is 35.7.
Can you provide the financial health for SPLK stock?
The financial health rating of SPLUNK INC (SPLK) is 4 / 10.