Snap (NYSE:SNAP) - Share price, News & Analysis

SNAP fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

SNAP Stock Overview

Snap Inc. operates as a camera company in North America, Europe, and internationally.

Rewards

Trading at 61.9% below our estimate of its fair value

Earnings are forecast to grow 74.64% per year

Earnings have grown 33.6% per year over the past 5 years

Risk Analysis

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year

Snap Competitors

Alphabet

NasdaqGS:GOOGL

US$1.5t

Meta Platforms

NasdaqGS:FB

US$537.5b

Baidu

NasdaqGS:BIDU

US$40.4b

Twitter

NYSE:TWTR

US$31.1b

Price History & Performance

Summary of all time highs, changes and price drops for Snap
Historical stock prices
Current Share Price	US$24.75
52 Week High	US$83.34
52 Week Low	US$20.95
Beta	1.18
1 Month Change	-25.43%
3 Month Change	-37.53%
1 Year Change	-53.29%
3 Year Change	115.41%
5 Year Change	23.75%
Change since IPO	1.10%

Shareholder Returns

	SNAP	US Interactive Media and Services	US Market
7D	-0.7%	-0.9%	-2.5%
1Y	-53.3%	-17.4%	-10.4%

Return vs Industry: SNAP underperformed the US Interactive Media and Services industry which returned -17.4% over the past year.

Return vs Market: SNAP underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is SNAP's price volatile compared to industry and market?
SNAP volatility
SNAP Average Weekly Movement	10.6%
Interactive Media and Services Industry Average Movement	12.3%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	2.8%

Stable Share Price: SNAP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: SNAP's weekly volatility (11%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2010	5,661	Evan Spiegel	https://www.snap.com

Snap Inc. operates as a camera company in North America, Europe, and internationally. The company offers Snapchat, a camera application with various functionalities, such as Camera, Communication, Snap Map, Stories, and Spotlight that enable people to communicate visually through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective; and advertising products, including AR ads and Snap ads comprises a single image or video ads, story ads, collection ads, dynamic ads, and commercials.

Snap Fundamentals Summary

How do Snap's earnings and revenue compare to its market cap?
SNAP fundamental statistics
Market Cap	US$40.50b
Earnings (TTM)	-US$560.70m
Revenue (TTM)	US$4.41b

9.2x

P/S Ratio

-72.2x

P/E Ratio

Is SNAP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SNAP income statement (TTM)
Revenue	US$4.41b
Cost of Revenue	US$1.76b
Gross Profit	US$2.65b
Other Expenses	US$3.21b
Earnings	-US$560.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.34
Gross Margin	60.12%
Net Profit Margin	-12.71%
Debt/Equity Ratio	104.9%

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?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SNAP ($24.75) is trading below our estimate of fair value ($65)

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 (11.4x) compared to the US Interactive Media and Services industry average (1.9x).

Future Growth

How is Snap forecast to perform in the next 1 to 3 years based on estimates from 36 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

74.6%

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 (1.9%).

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 (28.9% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: SNAP's revenue (28.9% 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 (17.4%).

Past Performance

How has Snap performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

33.6%

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 33.6% 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 (-32.4%).

Return on Equity

High ROE: SNAP has a negative Return on Equity (-15.74%), as it is currently unprofitable.

Financial Health

How is Snap's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: SNAP's short term assets ($6.1B) exceed its short term liabilities ($842.8M).

Long Term Liabilities: SNAP's short term assets ($6.1B) exceed its long term liabilities ($4.5B).

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 104.9% 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: Whilst unprofitable SNAP has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SNAP is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 29.2% per year.

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SNAP has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

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

3.3yrs

Average management tenure

CEO

Evan Spiegel (30 yo)

10yrs

Tenure

US$3,290,616

Compensation

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

CEO Compensation Analysis

Compensation vs Market: Evan's total compensation ($USD3.29M) is below average for companies of similar size in the US market ($USD13.26M).

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

Leadership Team

Experienced Management: SNAP's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: SNAP's board of directors are considered experienced (6 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 7.4%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31