SPLUNK INC (SPLK) Stock Fundamental Analysis
NASDAQ:SPLK - Nasdaq - US8486371045 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to SPLK. SPLK was compared to 282 industry peers in the Software industry. SPLK has only an average score on both its financial health and profitability. SPLK is not overvalued while it is showing excellent growth. This is an interesting combination.
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.
In the past 5 years SPLK reported 4 times negative net income.
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'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.
The Return On Invested Capital of SPLK (5.74%) is better 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 has a better Profit Margin (6.26%) than 79.29% of its industry peers.
SPLK has a Operating Margin of 6.34%. This is in the better half of the industry: SPLK outperforms 76.07% of its industry peers.
The Gross Margin of SPLK (79.80%) is better than 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.
SPLK has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SPLK has been increased compared to 5 years ago.
The debt/assets ratio for SPLK has been reduced compared to a year ago.
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'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.
The Debt to FCF ratio of SPLK (3.15) is better than 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.
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
A Current Ratio of 1.62 indicates that SPLK should not have too much problems paying its short term obligations.
SPLK has a Current ratio of 1.62. This is comparable to the rest of the industry: SPLK outperforms 48.93% of its industry peers.
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 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.
Measured over the past years, SPLK shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.69% on average per year.
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
The Earnings Per Share is expected to grow by 16.06% on average over the next years. This is quite good.
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.
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
A Price/Earnings ratio of 28.90 indicates a quite expensive valuation of SPLK.
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 27.21. SPLK is around the same levels.
With a Price/Forward Earnings ratio of 27.47, SPLK can be considered very expensive at the moment.
SPLK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SPLK is cheaper than 75.36% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, SPLK is valued a bit more expensive.
| 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPLK indicates a rather cheap valuation: SPLK is cheaper than 81.79% of the companies listed 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.
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
No dividends for SPLK!.
| 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 Change6599.4%
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%