NasdaqGS:SPLK

Stock Analysis Report

Executive Summary

Splunk Inc. provides software solutions that enable organizations to gain real-time operational intelligence in the United States and internationally.

Snowflake

Fundamentals

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.9%

NasdaqGS:SPLK

0.6%

US Software

1.1%

US Market


1 Year Return

-1.3%

NasdaqGS:SPLK

13.0%

US Software

2.1%

US Market

SPLK underperformed the Software industry which returned 11.8% over the past year.

SPLK underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

SPLKIndustryMarket
7 Day1.9%0.6%1.1%
30 Day-8.0%0.3%3.7%
90 Day-6.0%-0.9%2.3%
1 Year-1.3%-1.3%14.6%13.0%4.4%2.1%
3 Year96.7%96.7%118.5%109.9%47.0%37.4%
5 Year110.3%110.3%162.4%143.0%61.6%43.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.12x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Splunk's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Splunk's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Splunk is loss making, we can't compare its value to the US Software industry average.

Splunk 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 Splunk, we can't assess if its growth is good value.


Price Based on Value of Assets

Splunk is overvalued based on assets compared to the US Software industry average.


Next Steps

Future Growth

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

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Splunk's revenue is expected to grow by 18.2% yearly, however this is not considered high growth (20% yearly).

Splunk is not considered high growth as it is expected to be loss making for the next 1-3 years.

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

Unable to compare Splunk's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Splunk's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Splunk is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Splunk performed over the past 5 years?

-5.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

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

Unable to compare Splunk's 1-year growth to the US Software industry average as it is not currently profitable.


Return on Equity

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


Return on Capital Employed

It is difficult to establish if Splunk 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 Splunk's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Splunk's level of debt (116.7%) compared to net worth is high (greater than 40%).

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


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.9x 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.

Whilst loss making Splunk has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Splunk has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -14.7% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

No need to calculate the sustainability of Splunk'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 Splunk's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Doug Merritt (55yo)

3.8yrs

Tenure

US$13,505,795

Compensation

Mr. Douglas Merritt, also known as Doug, has been the Chief Executive Officer, President and Director at Splunk Inc. since November 19, 2015. Mr. Merritt served as Senior Vice President of Field Operation ...


CEO Compensation Analysis

Doug 's remuneration is about average for companies of similar size in United States of America.

Doug 's compensation has increased whilst company is loss making.


Management Age and Tenure

2.7yrs

Average Tenure

53yo

Average Age

The tenure for the Splunk management team is about average.


Board Age and Tenure

6.4yrs

Average Tenure

60yo

Average Age

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


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$4,095,96028 Mar 19
John Connors
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares33,000
Max PriceUS$124.12
SellUS$1,116,09028 Mar 19
John And Kathy Connors Foundation, Endowment Arm
EntityCompany
Shares9,000
Max PriceUS$124.01

Ownership Breakdown


Management Team

  • Lenny Stein (63yo)

    Senior Vice President of Global Affairs

    • Tenure: 1yrs
    • Compensation: US$5.02m
  • Ken Tinsley

    Head of Investor Relations

    • Tenure: 0yrs
  • Dave Conte (53yo)

    Senior Vice President of Finance

    • Tenure: 0.3yrs
    • Compensation: US$5.16m
  • Doug Merritt (55yo)

    CEO, President & Director

    • Tenure: 3.8yrs
    • Compensation: US$13.51m
  • Jason Child (50yo)

    Senior VP & CFO

    • Tenure: 0.3yrs
  • Susan St. Ledger (54yo)

    President of Worldwide Field Operations

    • Tenure: 2.7yrs
    • Compensation: US$9.09m
  • Declan Morris

    Chief Information Officer

    • Tenure: 0yrs
  • Ammar Maraqa

    Senior VP of Business Operations & Strategy and GM of IoT Markets

    • Tenure: 2.7yrs
  • Tim Tully (41yo)

    Senior VP & CTO

    • Tenure: 2.7yrs
    • Compensation: US$6.25m
  • Timothy Emanuelson (52yo)

    Chief Accounting Officer

    • Tenure: 0yrs

Board Members

  • Steve Newberry (65yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$319.94k
  • Graham Smith (59yo)

    Independent Chairman

    • Tenure: 0.5yrs
    • Compensation: US$319.94k
  • John Connors (60yo)

    Independent Director

    • Tenure: 12.1yrs
    • Compensation: US$349.94k
  • Patty Morrison (60yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$309.94k
  • Frederick Felman

    Member of Advisory Board

    • Tenure: 0yrs
  • Doug Merritt (55yo)

    CEO, President & Director

    • Tenure: 3.8yrs
    • Compensation: US$13.51m
  • Ray Suorsa

    Member of Advisory Board

    • Tenure: 0yrs
  • Ethan Galstad

    Member of Advisory Board

    • Tenure: 0yrs
  • Diane Hagglund

    Member of Advisory Board

    • Tenure: 0yrs
  • Brent Chapman

    Member of Advisory Board

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: Splunk Inc.
  • Ticker: SPLK
  • Exchange: NasdaqGS
  • Founded: 2003
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$17.378b
  • Shares outstanding: 151.35m
  • Website: https://www.splunk.com

Number of Employees


Location

  • Splunk Inc.
  • 270 Brannan Street
  • San Francisco
  • California
  • 94107
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPLKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2012
SPLKSWX (SIX Swiss Exchange)YesCommon StockCHCHFApr 2012
0R09LSE (London Stock Exchange)YesCommon StockGBUSDApr 2012
SPLK *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2012

Biography

Splunk Inc. provides software solutions that enable organizations to gain real-time operational intelligence in the United States and internationally. Its products enable users to investigate, monitor, ana ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 00:21
End of Day Share Price2019/09/16 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


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.