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SNAP

SnapNYSE:SNAP Stock Report

Last Price

US$34.99

Market Cap

US$56.3b

7D

-8.8%

1Y

-35.7%

Updated

21 Jan, 2022

Data

Company Financials +
SNAP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth6/6
Past Performance0/6
Financial Health4/6
Dividends0/6

SNAP Stock Overview

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

Snap Competitors

Alphabet

NasdaqGS:GOOG.L

US$1.8t

Meta Platforms

NasdaqGS:FB

US$880.6b

Baidu

NasdaqGS:BIDU

US$56.4b

Twitter

NYSE:TWTR

US$29.8b

Price History & Performance

Summary of all time highs, changes and price drops for Snap
Historical stock prices
Current Share PriceUS$34.99
52 Week HighUS$83.34
52 Week LowUS$34.76
Beta1.07
1 Month Change-24.10%
3 Month Change-36.54%
1 Year Change-35.68%
3 Year Change467.10%
5 Year Changen/a
Change since IPO42.93%

Recent News & Updates

Jan 16

Snap: Turbulent Times, More Estimate Reduction Needed

SNAP reports earnings within the next few weeks. Consensus is calling for a result that is towards the top end of their guidance. Structural and short-term concerns have elevated the risk profile of the business and have put management's 50%+ revenue CAGR target in jeopardy. Recent survey work from Cowen indicates that ad buyers are becoming increasingly reluctant to spend with SNAP, creating what we believe will end up being a flight to safety dynamic. On a broader level, we are slightly concerned about TikTok's competitive threat since they have near identical demographics. Additionally, we question the ability for SNAP to create effective enough 1P and 3P tools for effective targeting. Reiterating Hold rating, reducing PT from $53 to $40. Bear case of $21. Bull case of $56.

Jan 05

Snap: A Sinking Ship

Shares of Snap have lost nearly 50% of their value relative to all-time peaks above $80. Investors have lost confidence in the company's ability to grow users, especially as developed market/U.S. growth stalls. Snap's user growth is coming from its rest of world segment, which generates 1/10th of the U.S. ARPU. Now 10 years old, Snap is well aged as a social media platform that doesn't have the staying power of Facebook. Shares still look expensive at ~12x forward revenue.

Shareholder Returns

SNAPUS Interactive Media and ServicesUS Market
7D-8.8%-3.6%-4.0%
1Y-35.7%20.6%6.6%

Return vs Industry: SNAP underperformed the US Interactive Media and Services industry which returned 22.8% over the past year.

Return vs Market: SNAP underperformed the US Market which returned 7.7% over the past year.

Price Volatility

Is SNAP's price volatile compared to industry and market?
SNAP volatility
SNAP Average Weekly Movement10.2%
Interactive Media and Services Industry Average Movement9.2%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: SNAP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: SNAP's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20103,863Evan Spiegelhttps://www.snap.com

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, and Spotlight that enable people to communicate through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures video from a human perspective; and advertising products, including AR and Snap ads.

Snap Fundamentals Summary

How do Snap's earnings and revenue compare to its market cap?
SNAP fundamental statistics
Market CapUS$56.33b
Earnings (TTM)-US$623.60m
Revenue (TTM)US$3.73b

15.1x

P/S Ratio

-90.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SNAP income statement (TTM)
RevenueUS$3.73b
Cost of RevenueUS$1.69b
Gross ProfitUS$2.04b
ExpensesUS$2.67b
Earnings-US$623.60m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 03, 2022

Earnings per share (EPS)-0.39
Gross Margin54.79%
Net Profit Margin-16.72%
Debt/Equity Ratio65.5%

How did SNAP perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SNAP ($34.99) is trading below our estimate of fair value ($87.74)

Significantly Below Fair Value: SNAP is trading below fair value by more than 20%.


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 (16.4x) compared to the US Interactive Media and Services industry average (2.9x).


Future Growth

How is Snap forecast to perform in the next 1 to 3 years based on estimates from 35 analysts?

57.3%

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 (28.5% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: SNAP's revenue (28.5% 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 very high in 3 years time (42.8%).


Past Performance

How has Snap performed over the past 5 years?

19.6%

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 19.6% 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 (-8.9%).


Return on Equity

High ROE: SNAP has a negative Return on Equity (-18.13%), as it is currently unprofitable.


Financial Health

How is Snap's financial position?


Financial Position Analysis

Short Term Liabilities: SNAP's short term assets ($4.5B) exceed its short term liabilities ($808.5M).

Long Term Liabilities: SNAP's short term assets ($4.5B) exceed its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: SNAP has more cash than its total debt.

Reducing Debt: SNAP's debt to equity ratio has increased from 0% to 65.5% 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?

3.0yrs

Average management tenure


CEO

Evan Spiegel (30 yo)

9.67yrs

Tenure

US$2,094,432

Compensation

Mr. Evan Spiegel serves as an Independent Director at KKR & Co. Inc. since joining the firm in October 2021. He is a Co-Founder of Snap Inc. and served as its President. Mr. Spiegel has been Chief Executiv...


CEO Compensation Analysis

Compensation vs Market: Evan's total compensation ($USD2.09M) is below average for companies of similar size in the US market ($USD11.31M).

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


Leadership Team

Experienced Management: SNAP's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: SNAP's board of directors are considered experienced (6.1 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 8%.


Top Shareholders

Company Information

Snap Inc.'s 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
  • Implied Market Cap: US$56.327b
  • Shares outstanding: 1.61b
  • Website: https://www.snap.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 00:11
End of Day Share Price2022/01/20 00:00
Earnings2021/09/30
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.