NYSE:SNAP

Stock Analysis Report

Executive Summary

Snap Inc. operates as a camera company in the United States and internationally.

Snowflake

Fundamentals

High growth potential with excellent balance sheet.

Risks

  • Snap has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

NYSE:SNAP

2.3%

US Interactive Media and Services

2.9%

US Market


1 Year Return

41.6%

NYSE:SNAP

-1.9%

US Interactive Media and Services

0.2%

US Market

SNAP outperformed the Interactive Media and Services industry which returned -2.4% over the past year.

SNAP outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

SNAPIndustryMarket
7 Day0.9%2.3%2.9%
30 Day8.8%-1.2%-2.3%
90 Day39.6%3.1%3.1%
1 Year41.6%41.6%-1.9%-1.9%2.4%0.2%
3 Yearn/a47.5%47.4%41.7%32.4%
5 Yearn/a84.6%84.4%55.1%37.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Snap undervalued based on future cash flows and its price relative to the stock market?

2%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Snap's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Snap's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Snap is loss making, we can't compare its value to the US Interactive Media and Services industry average.

Snap is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Snap, we can't assess if its growth is good value.


Price Based on Value of Assets

Snap is overvalued based on assets compared to the US Interactive Media and Services industry average.


Next Steps

Future Growth

How is Snap expected to perform in the next 1 to 3 years based on estimates from 34 analysts?

41.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Snap's revenue is expected to grow significantly at over 20% yearly.

Snap's earnings are expected to grow significantly at over 20% yearly.

Snap's revenue growth is expected to exceed the United States of America market average.

Snap's earnings growth is expected to exceed the United States of America market average.

Snap's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Snap will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has Snap performed over the past 5 years?

-18.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Snap does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Snap's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Snap's 1-year growth to the US Interactive Media and Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Snap has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Snap has efficiently used its assets last year compared to the US Interactive Media and Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Snap improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Snap's financial position?


Financial Position Analysis

Snap is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Snap's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Snap's level of debt (0%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Snap's debt level has increased without past 5-year debt data.


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are -2.708765642282E+16x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Snap has sufficient cash runway for 2.4 years based on current free cash flow.

Snap has sufficient cash runway for 2.4 years if free cash flow continues to grow at historical rates of 4.3% each year.


Next Steps

Dividend

What is Snap's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Snap's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Snap's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Snap has not reported any payouts.

Unable to verify if Snap's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Snap has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Snap's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Snap's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Evan Spiegel (28yo)

7.3yrs

Tenure

US$800,847

Compensation

Mr. Evan Spiegel is a Co-Founder of Snap Inc. and serves as its President. Mr. Spiegel has been Chief Executive Officer and Director of Snap Inc. since May 2012. Mr. Spiegel has been a Trustee of The Paley ...


CEO Compensation Analysis

Evan's remuneration is lower than average for companies of similar size in United States of America.

Evan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.7yrs

Average Tenure

43yo

Average Age

The average tenure for the Snap management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.1yrs

Average Tenure

56yo

Average Age

The tenure for the Snap board of directors is about average.


Insider Trading

Snap individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$124,66118 Jul 19
Derek Andersen
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares8,136
Max PriceUS$15.32
SellUS$391,56318 Jul 19
Lara Sweet
EntityIndividual
Role
Chief Accounting Officer
Chief People Officer & Chief Accounting Officer
Shares25,594
Max PriceUS$15.30
SellUS$678,60919 Jun 19
Derek Andersen
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares49,291
Max PriceUS$13.77
SellUS$461,40419 Jun 19
Jeremi Gorman
EntityIndividual
Role
Senior Key Executive
Chief Business Officer
Shares33,462
Max PriceUS$13.79
SellUS$971,19819 Jun 19
Jerry Hunter
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Engineering
Shares70,702
Max PriceUS$13.74
SellUS$425,66719 Jun 19
Jared Grusd
EntityIndividual
Role
Senior Key Executive
Chief Strategy Officer
Shares30,875
Max PriceUS$13.79
SellUS$12,00220 May 19
Lara Sweet
EntityIndividual
Role
Chief Accounting Officer
Chief People Officer & Chief Accounting Officer
Shares1,059
Max PriceUS$11.33
SellUS$171,98322 Feb 19
Michael O'Sullivan
EntityIndividual
Shares18,484
Max PriceUS$9.30
SellUS$85,53819 Jan 19
Jerry Hunter
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Engineering
Shares14,828
Max PriceUS$5.77
SellUS$37,41919 Jan 19
Lara Sweet
EntityIndividual
Role
Chief Accounting Officer
Chief People Officer & Chief Accounting Officer
Shares6,489
Max PriceUS$5.77
SellUS$145,58719 Jan 19
Jared Grusd
EntityIndividual
Role
Senior Key Executive
Chief Strategy Officer
Shares25,244
Max PriceUS$5.77
SellUS$157,17519 Jan 19
Jeremi Gorman
EntityIndividual
Role
Senior Key Executive
Chief Business Officer
Shares27,259
Max PriceUS$5.77
SellUS$9,610,09904 Dec 18
Evan Spiegel
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares1,495,200
Max PriceUS$6.43
SellUS$12,75920 Nov 18
Lara Sweet
EntityIndividual
Role
Chief Accounting Officer
Chief People Officer & Chief Accounting Officer
Shares1,969
Max PriceUS$6.48
SellUS$180,12520 Nov 18
Michael O'Sullivan
EntityIndividual
Shares27,868
Max PriceUS$6.46
SellUS$122,81620 Nov 18
Jeremi Gorman
EntityIndividual
Role
Senior Key Executive
Chief Business Officer
Shares19,022
Max PriceUS$6.46
SellUS$148,45417 Oct 18
Lara Sweet
EntityIndividual
Role
Chief Accounting Officer
Chief People Officer & Chief Accounting Officer
Shares20,848
Max PriceUS$7.12

Ownership Breakdown


Management Team

  • Kristin Southey

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Jared Grusd (43yo)

    Chief Strategy Officer

    • Tenure: 0.8yrs
    • Compensation: US$20.85m
  • Evan Spiegel (28yo)

    Co-Founder

    • Tenure: 7.3yrs
    • Compensation: US$800.85k
  • Robert Murphy (30yo)

    Co-Founder

    • Tenure: 7.3yrs
    • Compensation: US$27.82k
  • Lara Sweet (45yo)

    Chief People Officer & Chief Accounting Officer

    • Tenure: 1.8yrs
  • Jerry Hunter (54yo)

    Senior Vice President of Engineering

    • Tenure: 1.7yrs
    • Compensation: US$1.40m
  • Michael O’Sullivan (53yo)

    General Counsel & Secretary

    • Tenure: 2.1yrs
    • Compensation: US$17.04m
  • Jeremi Gorman (41yo)

    Chief Business Officer

    • Tenure: 0.8yrs
    • Compensation: US$22.84m
  • Mary Ritti

    Vice President of Communications

    • Tenure: 0.0yrs
  • Derek Andersen

    Chief Financial Officer

    • Tenure: 0.3yrs

Board Members

  • Michael Lynton (59yo)

    Chairman of the Board

    • Tenure: 2.9yrs
    • Compensation: US$288.10k
  • A.G. Lafley (71yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$448.52k
  • Stan Meresman (72yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$270.60k
  • Scott Miller (66yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$284.77k
  • Chris Young (47yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$299.77k
  • Joanna Coles (56yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$284.77k
  • Evan Spiegel (28yo)

    Co-Founder

    • Tenure: 7.3yrs
    • Compensation: US$800.85k
  • Robert Murphy (30yo)

    Co-Founder

    • Tenure: 7.3yrs
    • Compensation: US$27.82k
  • Poppy Thorpe (34yo)

    Independent Director

    • Tenure: 1.0yrs
    • Compensation: US$264.35k

Company Information

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


Key Information

  • Name: Snap Inc.
  • Ticker: SNAP
  • Exchange: NYSE
  • Founded: 2010
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$22.262b
  • Shares outstanding: 1.38b
  • Website: https://www.snap.com

Number of Employees


Location

  • Snap Inc.
  • 2772 Donald Douglas Loop North
  • Santa Monica
  • California
  • 90405
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNAPNYSE (New York Stock Exchange)YesClass A Non-Voting Common StockUSUSDMar 2017
1SIXTRA (XETRA Trading Platform)YesClass A Non-Voting Common StockDEEURMar 2017
0RNHLSE (London Stock Exchange)YesClass A Non-Voting Common StockGBUSDMar 2017
SNAPSWX (SIX Swiss Exchange)YesClass A Non-Voting Common StockCHCHFMar 2017
SNAPWBAG (Wiener Boerse AG)YesClass A Non-Voting Common StockATEURMar 2017
SNAPETLX (Eurotlx)YesClass A Non-Voting Common StockITEURMar 2017
SNAPBASE (Buenos Aires Stock Exchange)CEDEAR EACH 1 REP 1 COM USD0.00001ARARSApr 2019

Biography

Snap Inc. operates as a camera company in the United States and internationally. The company offers Snapchat, a camera application that helps people to communicate through short videos and images. It also  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 00:52
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.