NasdaqGS:SPLK

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Mediocre 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

Stable Share Price: SPLK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SPLK's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

3.0%

SPLK

3.1%

US Software

2.8%

US Market


1 Year Return

31.7%

SPLK

45.2%

US Software

19.7%

US Market

Return vs Industry: SPLK underperformed the US Software industry which returned 45.2% over the past year.

Return vs Market: SPLK exceeded the US Market which returned 19.7% over the past year.


Shareholder returns

SPLKIndustryMarket
7 Day3.0%3.1%2.8%
30 Day-5.2%4.0%8.0%
90 Day-7.7%0.4%6.8%
1 Year31.7%31.7%46.2%45.2%22.4%19.7%
3 Year150.2%150.2%140.9%133.0%47.3%37.5%
5 Year231.8%231.8%216.7%200.0%93.6%72.3%

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

19.1x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SPLK ($198.86) is trading above our estimate of fair value ($151.49)

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


Price To Earnings Ratio

PE vs Industry: SPLK is unprofitable, so we can't compare its PE Ratio to the US Software industry average.

PE vs Market: SPLK 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 SPLK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SPLK is overvalued based on its PB Ratio (19.1x) compared to the US Software industry average (8x).


Next Steps

Future Growth

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

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPLK is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SPLK is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SPLK is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SPLK's revenue (20.8% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: SPLK's revenue (20.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPLK's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has Splunk performed over the past 5 years?

-8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPLK is currently unprofitable.

Growing Profit Margin: SPLK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SPLK is unprofitable, and losses have increased over the past 5 years at a rate of 8.6% per year.

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

Earnings vs Industry: SPLK is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (8.9%).


Return on Equity

High ROE: SPLK has a negative Return on Equity (-38.77%), as it is currently unprofitable.


Next Steps

Financial Health

How is Splunk's financial position?


Financial Position Analysis

Short Term Liabilities: SPLK's short term assets ($3.1B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: SPLK's short term assets ($3.1B) exceed its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: SPLK's debt to equity ratio (134.7%) is considered high.

Reducing Debt: Insufficient data to determine if SPLK'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: SPLK has sufficient cash runway for more than 3 years based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

1.8yrs

Average management tenure


CEO

Doug Merritt (56 yo)

5yrs

Tenure

US$15,710,645

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 serves as an Independent Director at Dragoneer Grow...


CEO Compensation Analysis

Compensation vs Market: Doug 's total compensation ($USD15.71M) is above average for companies of similar size in the US market ($USD10.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Merritt
CEO, President & Director5yrsUS$15.71m0.16%
$ 50.8m
Jason Child
Senior VP & CFO1.5yrsUS$17.49m0.011%
$ 3.5m
Timothy Tully
Senior VP & CTO3.83yrsUS$8.80m0.072%
$ 22.9m
Scott Morgan
Senior VP3.83yrsUS$6.47m0.045%
$ 14.5m
Susan St. Ledger
Advisor to the Chief Executive Officer0.17yrUS$9.34m0.096%
$ 30.7m
Timothy Emanuelson
Chief Accounting Officer1.17yrsno data0.015%
$ 4.9m
Declan Morris
Chief Information Officerno datano datano data
Ken Tinsley
Head of Investor Relationsno datano datano data
Carrie Palin
Senior VP & Chief Marketing Officer1.75yrsno datano data
Kristen Robinson
Chief People Officer0.83yrno datano data
Leonard Stein
Senior Vice President of Global Affairs2.17yrsUS$5.02mno data
Tracy Edkins
Senior Vice Presidentno datano datano data

1.8yrs

Average Tenure

54yo

Average Age

Experienced Management: SPLK's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Douglas Merritt
CEO, President & Director5yrsUS$15.71m0.16%
$ 50.8m
Cameron Myhrvold
Board Advisor13.17yrsno datano data
Stephen Newberry
Independent Director7.83yrsUS$300.92k0.024%
$ 7.7m
Graham Smith
Independent Non-Executive Chairman1.67yrsUS$335.42k0.021%
$ 6.7m
John Connors
Independent Director13.25yrsUS$309.36k0.043%
$ 13.7m
Patricia Morrison
Independent Director7.58yrsUS$301.70k0.018%
$ 5.6m
Mark Carges
Independent Director6.17yrsUS$290.92k0.0094%
$ 3.0m
Frederick Felman
Member of Advisory Boardno datano datano data
Ray Suorsa
Member of Advisory Boardno datano datano data
Ethan Galstad
Member of Advisory Boardno datano datano data
Diane Hagglund
Member of Advisory Boardno datano datano data
Brent Chapman
Member of Advisory Boardno datano datano data

7.6yrs

Average Tenure

60yo

Average Age

Experienced Board: SPLK's board of directors are considered experienced (7.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SPLK 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 3.9%.


Top Shareholders

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$31.896b
  • Shares outstanding: 160.39m
  • 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
S0UDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2012
SPLKSWX (SIX Swiss Exchange)YesCommon StockCHCHFApr 2012
0R09LSE (London Stock Exchange)YesCommon StockGBUSDApr 2012
SPLK *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2012
S1PL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 20 REPR 1 COM NPVBRBRLOct 2020

Biography

Splunk Inc. develops and markets software solutions that enable organizations to gain real-time operational intelligence in the United States and internationally. The company offers Splunk Enterprise, a re...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 00:35
End of Day Share Price2020/11/25 00:00
Earnings2020/07/31
Annual Earnings2020/01/31


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.