Splunk Inc.
Splunk Inc. Fundamental Analysis
Splunk Inc. (SPLK) shows moderate financial fundamentals with a PE ratio of 99.43, profit margin of 6.26%, and ROE of 83.71%. The company generates $4.3B in annual revenue with strong year-over-year growth of 15.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.7/100 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 SPLK's fundamental strength across five key dimensions:
Efficiency Score
WeakSPLK struggles to generate sufficient returns from assets.
Valuation Score
ModerateSPLK shows balanced valuation metrics.
Growth Score
ModerateSPLK shows steady but slowing expansion.
Financial Health Score
ModerateSPLK shows balanced financial health with some risks.
Profitability Score
ModerateSPLK maintains healthy but balanced margins.
Key Financial Metrics
Is SPLK Expensive or Cheap?
P/E Ratio
SPLK trades at 99.43 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SPLK's PEG of 0.99 indicates potential undervaluation.
Price to Book
The market values Splunk Inc. at 35.41 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 45.51 times EBITDA. This signals the market has high growth expectations.
How Well Does SPLK Make Money?
Net Profit Margin
For every $100 in sales, Splunk Inc. keeps $6.26 as profit after all expenses.
Operating Margin
Core operations generate 8.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $83.71 in profit for every $100 of shareholder equity.
ROA
Splunk Inc. generates $3.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Splunk Inc. produces operating cash flow of $1.02B, showing steady but balanced cash generation.
Free Cash Flow
Splunk Inc. generates strong free cash flow of $993.92M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.90 in free cash annually.
FCF Yield
SPLK converts 3.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
99.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.99
vs 25 benchmark
P/B Ratio
Price to book value ratio
35.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.84
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How SPLK Stacks Against Its Sector Peers
| Metric | SPLK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 99.43 | 35.19 | Worse (Expensive) |
| ROE | 83.71% | 1155.00% | Weak |
| Net Margin | 6.26% | -127067.00% (disorted) | Weak |
| Debt/Equity | 4.40 | 0.41 | Weak (High Leverage) |
| Current Ratio | 1.57 | 4.71 | Neutral |
| ROA | 3.94% | -314918.00% (disorted) | Weak |
SPLK outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Splunk Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
103.83%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
183.43%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
196.53%
Industry Style: Growth, Innovation, High Beta
High Growth