SPLUNK INC (SPLK) Stock Fundamental Analysis
USA - NASDAQ:SPLK - US8486371045 - Common Stock
156.9 USD
+0.39 (+0.25%)
156.92 USD
+0.02 (+0.01%)
We assign a fundamental rating of 5 out of 10 to SPLK. SPLK was compared to 281 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.
SPLK had a positive operating cash flow in the past year.
SPLK had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: SPLK reported negative operating cash flow in multiple years.
1.2 Ratios
SPLK has a better Return On Assets (3.94%) than 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 has a Return On Invested Capital of 5.74%. This is amongst the best in 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
Looking at the Profit Margin, with a value of 6.26%, SPLK is in the better half of the industry, outperforming 79.29% of the companies in the same industry.
Looking at the Operating Margin, with a value of 6.34%, SPLK is in the better half of the industry, outperforming 76.07% of the companies in the same industry.
SPLK's Gross Margin of 79.80% is amongst the best of 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. Health
2.1 Basic Checks
SPLK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SPLK has been increased compared to 1 year ago.
SPLK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SPLK has an improved debt to assets ratio.
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's Altman-Z score of 2.98 is in line compared to the rest of the industry. SPLK outperforms 57.14% of its industry peers.
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.
SPLK has a better Debt to FCF ratio (3.15) than 68.93% of its industry peers.
A Debt/Equity ratio of 4.20 is on the high side and indicates that SPLK has dependencies on debt financing.
SPLK has a Debt to Equity ratio of 4.20. This is amonst the worse of the industry: SPLK underperforms 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
A Current Ratio of 1.62 indicates that SPLK should not have too much problems paying its short term obligations.
With a Current ratio value of 1.62, SPLK perfoms like the industry average, outperforming 48.93% of the companies in the same 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 comparable to the rest of the industry.
| 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.
The Earnings Per Share has been growing by 32.69% on average over the past years. This is a very strong growth
Looking at the last year, SPLK shows a quite strong growth in Revenue. The Revenue has grown by 15.38% in the last year.
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
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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.90, SPLK can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SPLK indicates a somewhat cheap valuation: SPLK is cheaper than 79.64% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.56. SPLK is around the same levels.
A Price/Forward Earnings ratio of 27.47 indicates a quite expensive valuation of SPLK.
Based on the Price/Forward Earnings ratio, SPLK is valued a bit cheaper than the industry average as 75.36% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SPLK to the average of the S&P500 Index (34.62), we can say SPLK is valued slightly cheaper.
| 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.
81.79% of the companies in the same industry are more expensive than SPLK, based on the Price/Free Cash Flow ratio.
| 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. 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 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
Can you provide the ChartMill fundamental rating for SPLUNK INC?
ChartMill assigns a fundamental rating of 5 / 10 to SPLK.
Can you provide the valuation status for SPLUNK INC?
ChartMill assigns a valuation rating of 4 / 10 to SPLUNK INC (SPLK). This can be considered as Fairly Valued.
What is the profitability of SPLK stock?
SPLUNK INC (SPLK) has a profitability rating of 5 / 10.
How financially healthy is SPLUNK INC?
The financial health rating of SPLUNK INC (SPLK) is 4 / 10.
What is the expected EPS growth for SPLUNK INC (SPLK) stock?
The Earnings per Share (EPS) of SPLUNK INC (SPLK) is expected to grow by 5.2% in the next year.