Snap Inc. Fundamental Analysis (NYSE: SNAP)
Snap Inc. Fundamental Analysis (NYSE: SNAP)
Snap Inc. (NYSE: SNAP) shows moderate financial fundamentals with a PE ratio of -30.90, profit margin of -4.90%, and ROE of -14.61%. The company generates $6.4B in annual revenue with strong year-over-year growth of 10.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 18.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SNAP's fundamental strength across five key dimensions:
Efficiency Score
WeakSNAP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSNAP trades at attractive valuation levels.
Growth Score
ExcellentSNAP delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSNAP maintains a strong and stable balance sheet.
Profitability Score
WeakSNAP struggles to sustain strong margins.
Key Financial Metrics
Is SNAP Expensive or Cheap?
P/E Ratio
SNAP trades at -30.90 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SNAP's PEG of -0.48 indicates potential undervaluation.
Price to Book
The market values Snap Inc. at 4.96 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -111.62 times EBITDA. This is generally considered low.
How Well Does SNAP Make Money?
Net Profit Margin
For every $100 in sales, Snap Inc. keeps $-4.90 as profit after all expenses.
Operating Margin
Core operations generate -5.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-14.61 in profit for every $100 of shareholder equity.
ROA
Snap Inc. generates $-4.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Snap Inc. produces operating cash flow of $922.86M, showing steady but balanced cash generation.
Free Cash Flow
Snap Inc. generates strong free cash flow of $708.46M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.42 in free cash annually.
FCF Yield
SNAP converts 7.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-30.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.15
vs 25 benchmark
ROA
Return on assets percentage
-0.04
vs 25 benchmark
ROCE
Return on capital employed
-0.05
vs 25 benchmark
How SNAP Stacks Against Its Sector Peers
| Metric | SNAP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -30.90 | 20.66 | Better (Cheaper) |
| ROE | -14.61% | 615.00% | Weak |
| Net Margin | -4.90% | -158.00% (disorted) | Weak |
| Debt/Equity | 0.44 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 2.94 | 1.93 | Strong Liquidity |
| ROA | -4.17% | 411.00% | Weak |
SNAP outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Snap Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
101.38%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
58.52%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
433.11%
Industry Style: Growth, Technology, Streaming
High Growth