SPLUNK INC (SPLK) Stock Fundamental Analysis
NASDAQ:SPLK - Nasdaq - US8486371045 - Common Stock - Currency: USD
Overall SPLK gets a fundamental rating of 5 out of 10. We evaluated SPLK against 284 industry peers in the Software industry. Both the profitability and the financial health of SPLK get a neutral evaluation. Nothing too spectacular is happening here. SPLK is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
SPLK had positive earnings in the past year.
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
The Return On Assets of SPLK (3.94%) is better than 79.64% of its industry peers.
SPLK has a better Return On Equity (35.62%) than 95.71% of its industry peers.
With an excellent Return On Invested Capital value of 5.74%, SPLK belongs to the best of the industry, outperforming 81.79% of the companies in the same industry.
| 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
With a decent Profit Margin value of 6.26%, SPLK is doing good in the industry, outperforming 79.29% of the companies in the same industry.
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.
SPLK has a better Gross Margin (79.80%) than 81.79% of its industry peers.
SPLK's Gross Margin has been stable in the last couple of years.
| 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. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SPLK is destroying value.
SPLK has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SPLK has more shares outstanding
The debt/assets ratio for SPLK has been reduced compared to a year ago.
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.
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.
SPLK's Debt to FCF ratio of 3.15 is fine compared to the rest of the industry. SPLK outperforms 68.93% of its industry peers.
SPLK has a Debt/Equity ratio of 4.20. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.20, SPLK is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| 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.
SPLK has a Quick 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 Quick ratio (1.62) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
SPLK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 105.68%, which is quite impressive.
SPLK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.69% yearly.
Looking at the last year, SPLK shows a quite strong growth in Revenue. The Revenue has grown by 15.38% in the last year.
The Revenue has been growing by 18.51% on average over the past years. This is quite good.
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.
SPLK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.00% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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. Valuation
4.1 Price/Earnings Ratio
SPLK is valuated quite expensively with a Price/Earnings ratio of 28.90.
79.64% of the companies in the same industry are more expensive than SPLK, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.63. SPLK is around the same levels.
SPLK is valuated quite expensively with a Price/Forward Earnings ratio of 27.47.
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.
SPLK is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.9 | ||
| Fwd PE | 27.47 |
4.2 Price Multiples
SPLK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SPLK is cheaper than 66.07% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SPLK is valued cheaply inside the industry as 81.79% of the companies are valued more expensively.
| 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.
SPLK's earnings are expected to grow with 23.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.56
PEG (5Y)0.88
EPS Next 2Y12.36%
EPS Next 3Y23.71%
5. Dividend
5.1 Amount
SPLK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
156.9
+0.39 (+0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners8.43%
Inst Owner Change-100%
Ins Owners1.38%
Ins Owner Change0%
Market Cap26.44B
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
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
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 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%