Pinterest, Inc.
Pinterest, Inc. Fundamental Analysis
Pinterest, Inc. (PINS) shows moderate financial fundamentals with a PE ratio of 28.13, profit margin of 9.87%, and ROE of 8.74%. The company generates $4.3B in annual revenue with strong year-over-year growth of 19.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PINS's fundamental strength across five key dimensions:
Efficiency Score
WeakPINS struggles to generate sufficient returns from assets.
Valuation Score
ModeratePINS shows balanced valuation metrics.
Growth Score
ExcellentPINS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentPINS maintains a strong and stable balance sheet.
Profitability Score
WeakPINS struggles to sustain strong margins.
Key Financial Metrics
Is PINS Expensive or Cheap?
P/E Ratio
PINS trades at 28.13 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PINS's PEG of -0.36 indicates potential undervaluation.
Price to Book
The market values Pinterest, Inc. at 2.47 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 31.26 times EBITDA. This signals the market has high growth expectations.
How Well Does PINS Make Money?
Net Profit Margin
For every $100 in sales, Pinterest, Inc. keeps $9.87 as profit after all expenses.
Operating Margin
Core operations generate 7.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.74 in profit for every $100 of shareholder equity.
ROA
Pinterest, Inc. generates $7.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pinterest, Inc. generates strong operating cash flow of $1.30B, reflecting robust business health.
Free Cash Flow
Pinterest, Inc. generates strong free cash flow of $1.27B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.87 in free cash annually.
FCF Yield
PINS converts 10.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How PINS Stacks Against Its Sector Peers
| Metric | PINS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.13 | 21.66 | Worse (Expensive) |
| ROE | 8.74% | 1190.00% | Weak |
| Net Margin | 9.87% | -55754.00% (disorted) | Weak |
| Debt/Equity | 0.06 | 1.32 | Strong (Low Leverage) |
| Current Ratio | 7.64 | 1.59 | Strong Liquidity |
| ROA | 7.59% | -202359.00% (disorted) | Weak |
PINS outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pinterest, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
97.63%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
184.72%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
90840.14%
Industry Style: Growth, Technology, Streaming
High Growth