SPLUNK INC (SPLK) Fundamental Analysis & Valuation
NASDAQ:SPLK • US8486371045
156.9 USD
+0.39 (+0.25%)
At close: Mar 15, 2024
156.92 USD
+0.02 (+0.01%)
After Hours: 3/15/2024, 8:07:38 PM
This SPLK fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
SPLK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 276 industry peers in the Software industry. SPLK has only an average score on both its financial health and profitability. SPLK is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. SPLK Profitability Analysis
1.1 Basic Checks
- In the past year SPLK was profitable.
- In the past year SPLK had a positive cash flow from operations.
- SPLK had negative earnings in 4 of the past 5 years.
- In multiple years SPLK reported negative operating cash flow during the last 5 years.
1.2 Ratios
- SPLK has a Return On Assets of 3.94%. This is in the better half of the industry: SPLK outperforms 79.64% of its industry peers.
- SPLK's Return On Equity of 35.62% is amongst the best of the industry. SPLK outperforms 95.71% of its industry peers.
- SPLK has a better Return On Invested Capital (5.74%) than 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's Profit Margin of 6.26% is fine compared to the rest of the industry. SPLK outperforms 79.29% of its industry peers.
- The Operating Margin of SPLK (6.34%) is better than 76.07% of its industry peers.
- SPLK has a Gross Margin of 79.80%. This is amongst the best in the industry. SPLK outperforms 81.79% of its industry peers.
- 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
- SPLK has more shares outstanding than it did 5 years ago.
- SPLK has a better debt/assets ratio than last year.
2.2 Solvency
- SPLK has an Altman-Z score of 2.98. This is not the best score and indicates that SPLK is in the grey zone with still only limited risk for bankruptcy at the moment.
- SPLK has a Altman-Z score (2.98) which is in line with its industry peers.
- The Debt to FCF ratio of SPLK is 3.15, which is a good value as it means it would take SPLK, 3.15 years of fcf income to pay off 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.
- Looking at the Debt to Equity ratio, with a value of 4.20, SPLK is doing worse than 85.71% of the companies in the same industry.
| 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.
- SPLK has a Current ratio (1.62) which is comparable to the rest of the 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.
- Measured over the past years, SPLK shows a quite strong growth in Revenue. The Revenue has been growing by 18.51% on average per year.
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
- Based on estimates for the next years, SPLK will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.06% on average per year.
- The Revenue is expected to grow by 16.00% on average over the next years. This is quite good.
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. SPLK Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 28.90, SPLK can be considered very expensive at the moment.
- 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 26.83, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 27.47, SPLK can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SPLK indicates a somewhat cheap valuation: SPLK is cheaper than 75.36% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of SPLK to the average of the S&P500 Index (24.95), we can say SPLK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.9 | ||
| Fwd PE | 27.47 |
4.2 Price Multiples
- 66.07% of the companies in the same industry are more expensive than SPLK, based on the Enterprise Value to EBITDA ratio.
- 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 an expensive valuation of the company.
- 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
- SPLK does not give a dividend.
| 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
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 NumberN/A
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 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 of SPLUNK INC (SPLK) stock?
ChartMill assigns a valuation rating of 4 / 10 to SPLUNK INC (SPLK). This can be considered as Fairly Valued.
Can you provide the profitability details for SPLUNK INC?
SPLUNK INC (SPLK) has a profitability rating of 5 / 10.
What are the PE and PB ratios of SPLUNK INC (SPLK) stock?
The Price/Earnings (PE) ratio for SPLUNK INC (SPLK) is 28.9 and the Price/Book (PB) ratio is 35.7.
What is the earnings growth outlook for SPLUNK INC?
The Earnings per Share (EPS) of SPLUNK INC (SPLK) is expected to grow by 5.2% in the next year.