NYSE:PINS

Stock Analysis Report

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Market Cap

US$37.9b

Last Updated

2021/07/31 06:27 UTC

Data Sources

Company Financials +

Executive Summary

Pinterest, Inc. provides visual discovery engine in the United States and internationally. More Details


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.


Similar Companies

Share Price & News

How has Pinterest's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PINS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: PINS's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-23.4%

PINS

-0.9%

US Interactive Media and Services

-0.5%

US Market


1 Year Return

71.8%

PINS

63.1%

US Interactive Media and Services

35.9%

US Market

Return vs Industry: PINS exceeded the US Interactive Media and Services industry which returned 63.1% over the past year.

Return vs Market: PINS exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

PINSIndustryMarket
7 Day-23.4%-0.9%-0.5%
30 Day-26.2%5.5%0.3%
90 Day-11.3%10.2%3.1%
1 Year71.8%71.8%63.4%63.1%38.0%35.9%
3 Yearn/a99.4%99.1%62.9%52.7%
5 Yearn/a192.2%191.7%121.7%97.3%

Long-Term Price Volatility Vs. Market

How volatile is Pinterest's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pinterest undervalued compared to its fair value and its price relative to the market?

2.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PINS ($58.9) is trading below our estimate of fair value ($60.27)

Significantly Below Fair Value: PINS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PINS is poor value based on its PE Ratio (226.9x) compared to the US Interactive Media and Services industry average (33.7x).

PE vs Market: PINS is poor value based on its PE Ratio (226.9x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: PINS is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: PINS is overvalued based on its PB Ratio (15.1x) compared to the US Interactive Media and Services industry average (3.4x).


Future Growth

How is Pinterest forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

41.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PINS's forecast earnings growth (41.1% per year) is above the savings rate (2%).

Earnings vs Market: PINS's earnings (41.1% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PINS's revenue (23.8% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: PINS's revenue (23.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PINS's Return on Equity is forecast to be high in 3 years time (22.7%)


Past Performance

How has Pinterest performed over the past 5 years?

6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PINS has a large one-off loss of $89.5M impacting its June 30 2021 financial results.

Growing Profit Margin: PINS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PINS has become profitable over the past 5 years, growing earnings by 6.2% per year.

Accelerating Growth: PINS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PINS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (65.6%).


Return on Equity

High ROE: PINS's Return on Equity (6.4%) is considered low.


Financial Health

How is Pinterest's financial position?


Financial Position Analysis

Short Term Liabilities: PINS's short term assets ($2.7B) exceed its short term liabilities ($237.4M).

Long Term Liabilities: PINS's short term assets ($2.7B) exceed its long term liabilities ($144.3M).


Debt to Equity History and Analysis

Debt Level: PINS is debt free.

Reducing Debt: PINS has not had any debt for past 5 years.

Debt Coverage: PINS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PINS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Pinterest current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PINS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PINS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PINS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PINS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PINS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Ben Silbermann (38 yo)

9.5yrs

Tenure

US$199,100

Compensation

Mr. Benjamin Silbermann, also known as Ben, is Co-Founder of Pinterest, Inc. and serves as its Chairman of the Board of Directors. Mr. Silbermann serves as President and Chief Executive Officer of Pinteres...


CEO Compensation Analysis

Compensation vs Market: Ben's total compensation ($USD199.10K) is below average for companies of similar size in the US market ($USD11.17M).

Compensation vs Earnings: Ben's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PINS's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: PINS's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PINS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.6%.


Top Shareholders

Company Information

Pinterest, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pinterest, Inc.
  • Ticker: PINS
  • Exchange: NYSE
  • Founded: 2008
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$37.860b
  • Shares outstanding: 642.79m
  • Website: https://www.pinterest.com

Number of Employees


Location

  • Pinterest, Inc.
  • 505 Brannan Street
  • San Francisco
  • California
  • 94107
  • United States

Listings


Biography

Pinterest, Inc. provides visual discovery engine in the United States and internationally. The company’s engine allows people to find inspiration for their lives, including recipes, style and home inspirat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 06:27
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.