Snowflake Inc. Fundamental Analysis (NYSE: SNOW)
Snowflake Inc. (NYSE: SNOW) shows moderate financial fundamentals with a PE ratio of -102.17, profit margin of -20.07%, and ROE of -53.56%. The company generates $5.4B in annual revenue with strong year-over-year growth of 29.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -31.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SNOW's fundamental strength across five key dimensions:
Efficiency Score
WeakSNOW struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSNOW trades at attractive valuation levels.
Growth Score
ModerateSNOW shows steady but slowing expansion.
Financial Health Score
WeakSNOW carries high financial risk with limited liquidity.
Profitability Score
WeakSNOW struggles to sustain strong margins.
Key Financial Metrics
Is SNOW Expensive or Cheap?
P/E Ratio
SNOW trades at -102.17 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SNOW's PEG of -3.70 indicates potential undervaluation.
Price to Book
The market values Snowflake Inc. at 52.79 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -126.47 times EBITDA. This is generally considered low.
How Well Does SNOW Make Money?
Net Profit Margin
For every $100 in sales, Snowflake Inc. keeps $-20.07 as profit after all expenses.
Operating Margin
Core operations generate -22.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-53.56 in profit for every $100 of shareholder equity.
ROA
Snowflake Inc. generates $-12.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Snowflake Inc. produces operating cash flow of $1.24B, showing steady but balanced cash generation.
Free Cash Flow
Snowflake Inc. generates strong free cash flow of $1.19B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.42 in free cash annually.
FCF Yield
SNOW converts 1.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-102.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.70
vs 25 benchmark
P/B Ratio
Price to book value ratio
52.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
20.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.54
vs 25 benchmark
ROA
Return on assets percentage
-0.13
vs 25 benchmark
ROCE
Return on capital employed
-0.25
vs 25 benchmark
How SNOW Stacks Against Its Sector Peers
| Metric | SNOW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -102.17 | 33.76 | Better (Cheaper) |
| ROE | -53.56% | 777.00% | Weak |
| Net Margin | -20.07% | -3141.00% (disorted) | Weak |
| Debt/Equity | 1.29 | 0.59 | Weak (High Leverage) |
| Current Ratio | 0.94 | 6.20 | Weak Liquidity |
| ROA | -12.55% | 337.00% | Weak |
SNOW outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Snowflake Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1039.15%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-206.77%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
552.08%
Industry Style: Growth, Innovation, High Beta
High Growth