Market Cap
US$27.8b
Last Updated
2020/06/05 06:07 UTC
Data Sources
Company Financials +
Executive Summary
Snap Inc. operates as a camera company in the United States and internationally.
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Mediocre balance sheet with limited growth.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
1.7%
SNAP
0.1%
US Interactive Media and Services
3.8%
US Market
1 Year Return
38.9%
SNAP
26.9%
US Interactive Media and Services
9.7%
US Market
Return vs Industry: SNAP exceeded the US Interactive Media and Services industry which returned 32.7% over the past year.
Return vs Market: SNAP exceeded the US Market which returned 8.9% over the past year.
Shareholder returns
| SNAP | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.7% | 0.1% | 3.8% |
| 30 Day | 11.1% | 7.3% | 11.4% |
| 90 Day | 48.2% | 14.7% | 6.8% |
| 1 Year | 38.9%38.9% | 27.0%26.9% | 12.1%9.7% |
| 3 Year | 6.5%6.5% | 41.3%41.1% | 36.2%27.2% |
| 5 Year | n/a | 125.4%124.8% | 63.7%45.4% |
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
2 months ago | Simply Wall St
Estimating The Fair Value Of Snap Inc. (NYSE:SNAP)3 months ago | Simply Wall St
This Insider Has Just Sold Shares In Snap Inc. (NYSE:SNAP)4 months ago | Simply Wall St
Does Snap (NYSE:SNAP) Have A Healthy Balance Sheet?Valuation
Is Snap undervalued compared to its fair value and its price relative to the market?
13.05x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: SNAP ($19.26) is trading above our estimate of fair value ($10.34)
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 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 (13x) compared to the US Interactive Media and Services industry average (2.7x).
Next Steps
Future Growth
How is Snap forecast to perform in the next 1 to 3 years based on estimates from 36 analysts?
62.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SNAP is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: SNAP is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: SNAP is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: SNAP's revenue (24.3% per year) is forecast to grow faster than the US market (8.8% per year).
High Growth Revenue: SNAP's revenue (24.3% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SNAP is forecast to be unprofitable in 3 years.
Next Steps
Past Performance
How has Snap performed over the past 5 years?
-5.0%
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, and losses have increased over the past 5 years at a rate of -5% 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 (-16.7%).
Return on Equity
High ROE: SNAP has a negative Return on Equity (-48.43%), as it is currently unprofitable.
Next Steps
Financial Health
How is Snap's financial position?
Financial Position Analysis
Short Term Liabilities: SNAP's short term assets ($2.5B) exceed its short term liabilities ($523.2M).
Long Term Liabilities: SNAP's short term assets ($2.5B) exceed its long term liabilities ($1.3B).
Debt to Equity History and Analysis
Debt Level: SNAP's debt to equity ratio (42.5%) is considered high.
Reducing Debt: Insufficient data to determine if SNAP's debt to equity ratio has reduced 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.
Next Steps
Dividend
What is Snap's 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?
1.3yrs
Average management tenure
CEO
Evan Spiegel (28yo)
8.08yrs
Tenure
US$1,669,810
Compensation
Mr. Evan Spiegel is a Co-Founder of Snap Inc. and serves as its President. Mr. Spiegel has been Chief Executive Officer and Director of Snap Inc. since May 2012. Mr. Spiegel has been a Trustee of The Paley ...
CEO Compensation Analysis
Compensation vs Market: Evan's total compensation ($USD1.67M) is below average for companies of similar size in the US market ($USD11.52M).
Compensation vs Earnings: Evan's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 8.08yrs | US$1.67m | 13.23% $3.7b | |
| Co-Founder | 8.08yrs | US$29.93k | 14.01% $3.9b | |
| Chief Financial Officer | 1.08yrs | US$9.56m | 0.078% $21.7m | |
| Chief Accounting Officer & Controller | 0.75yr | US$4.58m | 0.019% $5.3m | |
| General Counsel & Secretary | 2.92yrs | US$9.08m | 0.053% $14.7m | |
| Chief People Officer | 1.08yrs | US$10.08m | 0.052% $14.5m | |
| Senior Vice President of Engineering | 2.58yrs | US$3.38m | 0.18% $49.3m | |
| Vice President of Investor Relations | no data | no data | no data | |
| Chief Communications Officer | 1.42yrs | no data | no data | |
| Chief Marketing Officer | 1yr | no data | no data |
1.3yrs
Average Tenure
45yo
Average Age
Experienced Management: SNAP's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 8.08yrs | US$1.67m | 13.23% $3.7b | |
| Co-Founder | 8.08yrs | US$29.93k | 14.01% $3.9b | |
| Independent Chairman of the Board | 3.75yrs | US$426.70k | 0.12% $32.5m | |
| Independent Director | 3.92yrs | US$400.04k | 0.010% $2.9m | |
| Independent Director | 4.92yrs | US$355.04k | 0.00071% $197.7k | |
| Independent Director | 3.67yrs | US$330.04k | 0.0042% $1.2m | |
| Independent Director | 3.67yrs | US$390.04k | 0.0042% $1.2m | |
| Independent Director | 4.5yrs | US$330.04k | 0.0043% $1.2m | |
| Director | 0.083yr | no data | no data | |
| Independent Director | 1.83yrs | US$330.04k | 0.00066% $183.7k |
3.8yrs
Average Tenure
56yo
Average Age
Experienced Board: SNAP's board of directors are considered experienced (3.8 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 7.9%.
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$27.839b
- Shares outstanding: 1.45b
- Website: https://www.snap.com
Number of Employees
Location
- Snap Inc.
- 2772 Donald Douglas Loop North
- Santa Monica
- California
- 90405
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1SI | DB (Deutsche Boerse AG) | Yes | Class A Non-Voting Common Stock | DE | EUR | Mar 2017 |
| SNAP | NYSE (New York Stock Exchange) | Yes | Class A Non-Voting Common Stock | US | USD | Mar 2017 |
| 1SI | XTRA (XETRA Trading Platform) | Yes | Class A Non-Voting Common Stock | DE | EUR | Mar 2017 |
| 0RNH | LSE (London Stock Exchange) | Yes | Class A Non-Voting Common Stock | GB | USD | Mar 2017 |
| SNAP | SWX (SIX Swiss Exchange) | Yes | Class A Non-Voting Common Stock | CH | CHF | Mar 2017 |
| SNAP | WBAG (Wiener Boerse AG) | Yes | Class A Non-Voting Common Stock | AT | EUR | Mar 2017 |
| 1SI | ETLX (Eurotlx) | Yes | Class A Non-Voting Common Stock | IT | EUR | Mar 2017 |
| 35612177 | SWX (SIX Swiss Exchange) | Yes | Class A Non-Voting Common Stock | CH | USD | Mar 2017 |
| SNAP * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Non-Voting Common Stock | MX | MXN | Mar 2017 |
| SNAP | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 1 REP 1 COM USD0.00001 | AR | ARS | Apr 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 provides Camera, a tool to personalize and add context to Snaps; Friends Page that allows creating and watching stories, chatting with groups, making voice and video calls, and communicating through a range of contextual stickers and Bitmojis; and Discover that helps surfacing the stories and shows from publishers, creators, and the community, based on a user’s subscriptions and interests. In addition, the company offers Snap Map, which brings to a live map of individual location, showing nearby friends, popular stories, and a heatmap of recent snaps posted; Memories that allows users to choose to save the Snaps they create in a searchable personal collection, and users to create Snaps and stories from their saved Snaps and camera roll; and Spectacles, a hardware product that connects with Snapchat and captures video from a human perspective. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/05 06:07 |
| End of Day Share Price | 2020/06/04 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.