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SPLK

SplunkNasdaqGS:SPLK Stock Report

Last Price

US$118.10

Market Cap

US$18.8b

7D

-1.9%

1Y

-31.3%

Updated

21 Jan, 2022

Data

Company Financials +
SPLK fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance0/6
Financial Health2/6
Dividends0/6

SPLK Stock Overview

Splunk Inc. provides software and cloud solutions that deliver and operationalize insights from the data generated by digital systems in the United States and internationally.

Splunk Competitors

salesforce.com

NYSE:CRM

US$219.6b

Atlassian

NasdaqGS:TEAM

US$73.6b

Synopsys

NasdaqGS:SNPS

US$47.6b

Cadence Design Systems

NasdaqGS:CDNS

US$41.7b

Price History & Performance

Summary of all time highs, changes and price drops for Splunk
Historical stock prices
Current Share PriceUS$118.10
52 Week HighUS$178.18
52 Week LowUS$105.45
Beta1.29
1 Month Change3.56%
3 Month Change-29.48%
1 Year Change-31.27%
3 Year Change-1.54%
5 Year Change104.57%
Change since IPO232.86%

Recent News & Updates

Jan 14
Splunk Inc.'s (NASDAQ:SPLK) Intrinsic Value Is Potentially 49% Above Its Share Price

Splunk Inc.'s (NASDAQ:SPLK) Intrinsic Value Is Potentially 49% Above Its Share Price

In this article we are going to estimate the intrinsic value of Splunk Inc. ( NASDAQ:SPLK ) by taking the expected...

Jan 04

Splunk: Time To Buy The Dip, A Rebound Is Coming In 2022

Shares of Splunk crashed more than 30% since the start of November, a reflection of weakening investor sentiment towards growth. The company's Q3 earnings results came in well above expectations. In particular, Splunk continued a healthy pace of ARR growth as the company continues to make progress on its subscription transition. Valuation looks attractive at ~6.7x FY23 revenue, considering historical averages in the low teens and a current ~40% y/y pace of growth in ARR.

Dec 24
At US$116, Is Splunk Inc. (NASDAQ:SPLK) Worth Looking At Closely?

At US$116, Is Splunk Inc. (NASDAQ:SPLK) Worth Looking At Closely?

Today we're going to take a look at the well-established Splunk Inc. ( NASDAQ:SPLK ). The company's stock saw...

Shareholder Returns

SPLKUS SoftwareUS Market
7D-1.9%-2.1%-4.0%
1Y-31.3%9.6%6.6%

Return vs Industry: SPLK underperformed the US Software industry which returned 10.2% over the past year.

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

Price Volatility

Is SPLK's price volatile compared to industry and market?
SPLK volatility
SPLK Average Weekly Movement7.5%
Software Industry Average Movement8.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: SPLK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SPLK's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20036,500Graham Smithhttps://www.splunk.com

Splunk Inc. provides software and cloud solutions that deliver and operationalize insights from the data generated by digital systems in the United States and internationally. The company offers Splunk Platform, a real-time data platform comprising collection, streaming, indexing, search, reporting, analysis, machine learning, alerting, monitoring, and data management capabilities. It also provides Splunk Solutions, such as Splunk Security solutions that enable cybersecurity teams streamline the security operations workflow, accelerate threat detection and response, enhance threat visibility, and scale resources to increase analyst productivity through machine learning and runbook-driven automation; Splunk IT Solutions that provide IT Operations teams visibility and control across cloud and on-premises environments; and Splunk Observability Solutions for building and maintaining infrastructure and applications.

Splunk Fundamentals Summary

How do Splunk's earnings and revenue compare to its market cap?
SPLK fundamental statistics
Market CapUS$18.75b
Earnings (TTM)-US$1.34b
Revenue (TTM)US$2.52b

7.4x

P/S Ratio

-14.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SPLK income statement (TTM)
RevenueUS$2.52b
Cost of RevenueUS$693.26m
Gross ProfitUS$1.82b
ExpensesUS$3.16b
Earnings-US$1.34b

Last Reported Earnings

Oct 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-8.43
Gross Margin72.46%
Net Profit Margin-53.14%
Debt/Equity Ratio1,742.1%

How did SPLK perform over the long term?

See historical performance and comparison

Valuation

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

34.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPLK ($118.1) is trading below our estimate of fair value ($180.11)

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


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 (105.5x) compared to the US Software industry average (4.9x).


Future Growth

How is Splunk forecast to perform in the next 1 to 3 years based on estimates from 37 analysts?

18.9%

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 (17.6% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: SPLK's revenue (17.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SPLK's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Splunk performed over the past 5 years?

-34.9%

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 34.9% 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 (20%).


Return on Equity

High ROE: SPLK has a negative Return on Equity (-752.82%), as it is currently unprofitable.


Financial Health

How is Splunk's financial position?


Financial Position Analysis

Short Term Liabilities: SPLK's short term assets ($2.7B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: SPLK's short term assets ($2.7B) do not cover its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: SPLK's net debt to equity ratio (836.3%) is considered high.

Reducing Debt: SPLK's debt to equity ratio has increased from 0.08% to 1742.1% 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.


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?

1.3yrs

Average management tenure


CEO

Graham Smith (61 yo)

0.17

Tenure

US$411,960

Compensation

Mr. Graham Vivian Smith has been Director of Splunk Inc. since July 2011 and has been its Chairman since March 21, 2019. He serves as Interim Chief Executive Officer at Splunk Inc. since November 15, 2021....


Leadership Team

Experienced Management: SPLK's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: SPLK's board of directors are considered experienced (8.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Splunk Inc.
  • Ticker: SPLK
  • Exchange: NasdaqGS
  • Founded: 2003
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$18.753b
  • Shares outstanding: 158.79m
  • Website: https://www.splunk.com

Number of Employees


Location

  • Splunk Inc.
  • 270 Brannan Street
  • San Francisco
  • California
  • 94107
  • 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 00:05
End of Day Share Price2022/01/20 00:00
Earnings2021/10/31
Annual Earnings2021/01/31


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.