NYSE:SNAP

Stock Analysis Report

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Market Cap

US$117.3b

Last Updated

2021/07/31 22:18 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

High growth potential with mediocre balance sheet.


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

Stable Share Price: SNAP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: SNAP's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-4.6%

SNAP

-0.9%

US Interactive Media and Services

-0.5%

US Market


1 Year Return

231.9%

SNAP

64.0%

US Interactive Media and Services

35.9%

US Market

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

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


Shareholder returns

SNAPIndustryMarket
7 Day-4.6%-0.9%-0.5%
30 Day10.0%4.9%0.09%
90 Day20.4%10.3%3.2%
1 Year231.9%231.9%64.4%64.0%38.0%35.9%
3 Year484.6%484.6%99.5%99.2%62.8%52.6%
5 Yearn/a192.3%191.8%121.2%96.9%

Long-Term 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 compared to its fair value and its price relative to the market?

40.35x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SNAP ($74.42) is trading above our estimate of fair value ($63.88)

Significantly Below Fair Value: SNAP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SNAP is unprofitable, so we can't compare its PE Ratio to the US Interactive Media and Services industry average.

PE vs Market: SNAP is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SNAP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SNAP is overvalued based on its PB Ratio (40.4x) compared to the US Interactive Media and Services industry average (3.4x).


Future Growth

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

71.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNAP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: SNAP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SNAP's is expected to become profitable in the next 3 years.

Revenue vs Market: SNAP's revenue (33.2% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: SNAP's revenue (33.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SNAP's Return on Equity is forecast to be low in 3 years time (11.3%).


Past Performance

How has Snap performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SNAP is currently unprofitable.

Growing Profit Margin: SNAP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SNAP is unprofitable, but has reduced losses over the past 5 years at a rate of 12.8% per year.

Accelerating Growth: Unable to compare SNAP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SNAP is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (65.6%).


Return on Equity

High ROE: SNAP has a negative Return on Equity (-25.84%), as it is currently unprofitable.


Financial Health

How is Snap's financial position?


Financial Position Analysis

Short Term Liabilities: SNAP's short term assets ($4.3B) exceed its short term liabilities ($748.1M).

Long Term Liabilities: SNAP's short term assets ($4.3B) exceed its long term liabilities ($3.2B).


Debt to Equity History and Analysis

Debt Level: SNAP's debt to equity ratio (87.7%) is considered high.

Reducing Debt: SNAP's debt to equity ratio has increased from 0% to 87.7% over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: SNAP has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SNAP has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SNAP'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 SNAP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SNAP'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 SNAP'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?

2.4yrs

Average management tenure


CEO

Evan Spiegel (30 yo)

9.17yrs

Tenure

US$2,094,432

Compensation

Mr. Evan Spiegel is a Co-Founder of Snap Inc. and served 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

Compensation vs Market: Evan's total compensation ($USD2.09M) is below average for companies of similar size in the US market ($USD11.17M).

Compensation vs Earnings: Evan's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: SNAP's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: SNAP's board of directors are considered experienced (4.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SNAP 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 7.3%.


Top Shareholders

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$117.341b
  • Shares outstanding: 1.58b
  • Website: https://www.snap.com

Number of Employees


Location

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

Listings


Biography

Snap Inc. operates as a camera company in the United States and internationally. The company offers Snapchat, a camera application with functionalities, such as Camera, Communication, Snap Map, Stories, an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 22:18
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.