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

Stable Share Price: SPLK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

SPLK

2.3%

US Software

0.4%

US Market


1 Year Return

22.7%

SPLK

30.8%

US Software

13.1%

US Market

Return vs Industry: SPLK underperformed the US Software industry which returned 30.8% over the past year.

Return vs Market: SPLK exceeded the US Market which returned 13.1% over the past year.


Shareholder returns

SPLKIndustryMarket
7 Day1.6%2.3%0.4%
30 Day4.1%3.5%4.0%
90 Day-0.06%3.5%7.4%
1 Year22.7%22.7%32.6%30.8%15.6%13.1%
3 Year100.4%100.4%124.7%116.2%48.2%38.6%
5 Year92.1%92.1%169.7%150.8%62.6%44.6%

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?

13.16x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SPLK ($124.72) is trading above our estimate of fair value ($100.02)

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 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 (13.2x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

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

19.8%

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 (18.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: SPLK's revenue (18.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPLK's Return on Equity is forecast to be high in 3 years time (24.5%)


Next Steps

Past Performance

How has Splunk performed over the past 5 years?

-5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPLK has a high level of non-cash earnings.

Growing Profit Margin: SPLK's current net profit margins (-15.2%) are lower than last year (-14.5%).


Past Earnings Growth Analysis

Earnings Trend: SPLK is unprofitable, and losses have increased over the past 5 years at a rate of -5.4% 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 (20.8%).


Return on Equity

High ROE: SPLK has a negative Return on Equity (-21.61%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Splunk's financial position?


Financial Position Analysis

Short Term Liabilities: SPLK's short term assets ($3.1B) exceeds its short term liabilities ($1.0B)

Long Term Liabilities: SPLK's short term assets (3.1B) exceeds its long term liabilities (2.0B)


Debt to Equity History and Analysis

Debt Level: SPLK's debt to equity ratio (116.7%) 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

Inventory Level: SPLK has a low level of unsold assets or inventory.

Debt Coverage by Assets: SPLK's 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.

Stable Cash Runway: Whilst unprofitable SPLK has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SPLK is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 14.7% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate SPLK's dividend yield against the top 25% of dividend payers, as the company has not reported any 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

What is the CEO of Splunk's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Doug Merritt (55yo)

4yrs

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

Compensation vs Market: Doug 's total compensation ($USD13.51M) is about average for companies of similar size in the US market ($USD10.97M).

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


Management Age and Tenure

2.8yrs

Average Tenure

52yo

Average Age

Experienced Management: SPLK's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

60yo

Average Age

Experienced Board: SPLK's board of directors are considered experienced (6.6 years average tenure).


Insider Trading

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


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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.9%.


Management Team

  • Lenny Stein (63yo)

    Senior Vice President of Global Affairs

    • Tenure: 1.2yrs
    • Compensation: US$5.02m
  • Ken Tinsley

    Head of Investor Relations

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

    CEO, President & Director

    • Tenure: 4yrs
    • Compensation: US$13.51m
  • Jason Child (50yo)

    Senior VP & CFO

    • Tenure: 0.5yrs
  • Susan St. Ledger (54yo)

    President of Worldwide Field Operations

    • Tenure: 2.8yrs
    • 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: 2.8yrs
  • Tim Tully (41yo)

    Senior VP & CTO

    • Tenure: 2.8yrs
    • Compensation: US$6.25m
  • Scott Morgan (48yo)

    Senior VP

    • Tenure: 2.8yrs
  • Timothy Emanuelson (52yo)

    Chief Accounting Officer

    • Tenure: 0.2yrs

Board Members

  • Steve Newberry (65yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$319.94k
  • Graham Smith (59yo)

    Independent Chairman

    • Tenure: 0.7yrs
    • Compensation: US$319.94k
  • John Connors (60yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$349.94k
  • Patty Morrison (60yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$309.94k
  • Frederick Felman

    Member of Advisory Board

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

    CEO, President & Director

    • Tenure: 4yrs
    • 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$19.249b
  • Shares outstanding: 154.34m
  • 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 Analysis2019/11/14 00:06
End of Day Share Price2019/11/13 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.