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Splunk

Nasdaq:SPLK
Snowflake Description

Adequate balance sheet with concerning outlook.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SPLK
Nasdaq
$18B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Splunk Inc. provides software solutions that enable organizations to gain real-time operational intelligence in the United States and internationally. The last earnings update was 12 days ago. More info.


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SPLK Share Price and Events
7 Day Returns
2.2%
NasdaqGS:SPLK
-0.5%
US Software
0.3%
US Market
1 Year Returns
2.2%
NasdaqGS:SPLK
20.8%
US Software
0.7%
US Market
SPLK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Splunk (SPLK) 2.2% -12.6% -8.2% 2.2% 100.3% 126.7%
US Software -0.5% -0% 5.1% 20.8% 122.2% 149.6%
US Market 0.3% 0.4% 0.6% 0.7% 37.2% 37.4%
1 Year Return vs Industry and Market
  • SPLK underperformed the Software industry which returned 20.8% over the past year.
  • SPLK outperformed the Market in United States of America which returned 0.7% over the past year.
Price Volatility
SPLK
Industry
5yr Volatility vs Market
Related Companies

SPLK Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Splunk to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Splunk.

NasdaqGS:SPLK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 36 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SPLK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.136 (1 + (1- 21%) (10.45%))
1.154
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.15
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.154 * 5.96%)
9.61%

Discounted Cash Flow Calculation for NasdaqGS:SPLK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Splunk is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:SPLK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.61%)
2019 289.70 Analyst x17 264.31
2020 161.87 Analyst x18 134.74
2021 434.50 Analyst x20 329.96
2022 654.44 Analyst x5 453.42
2023 1,013.75 Analyst x2 640.79
2024 1,231.75 Analyst x2 710.34
2025 1,409.36 Est @ 14.42% 741.53
2026 1,563.16 Est @ 10.91% 750.35
2027 1,695.38 Est @ 8.46% 742.48
2028 1,809.64 Est @ 6.74% 723.05
Present value of next 10 years cash flows $5,490.97
NasdaqGS:SPLK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,809.64 × (1 + 2.73%) ÷ (9.61% – 2.73%)
$27,028.63
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $27,028.63 ÷ (1 + 9.61%)10
$10,799.41
NasdaqGS:SPLK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,490.97 + $10,799.41
$16,290.38
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $16,290.38 / 150.17
$108.48
NasdaqGS:SPLK Discount to Share Price
Calculation Result
Value per share (USD) From above. $108.48
Current discount Discount to share price of $119.32
= -1 x ($119.32 - $108.48) / $108.48
-10%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Splunk is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Splunk's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Splunk's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SPLK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-04-30) in USD $-2.12
NasdaqGS:SPLK Share Price ** NasdaqGS (2019-06-17) in USD $119.32
United States of America Software Industry PE Ratio Median Figure of 81 Publicly-Listed Software Companies 50.61x
United States of America Market PE Ratio Median Figure of 3,093 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Splunk.

NasdaqGS:SPLK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SPLK Share Price ÷ EPS (both in USD)

= 119.32 ÷ -2.12

-56.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Splunk's expected growth come at a high price?
Raw Data
NasdaqGS:SPLK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -56.16x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 36 Analysts
26.5%per year
United States of America Software Industry PEG Ratio Median Figure of 67 Publicly-Listed Software Companies 3.02x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Splunk, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Splunk's assets?
Raw Data
NasdaqGS:SPLK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-04-30) in USD $9.50
NasdaqGS:SPLK Share Price * NasdaqGS (2019-06-17) in USD $119.32
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.75x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NasdaqGS:SPLK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SPLK Share Price ÷ Book Value per Share (both in USD)

= 119.32 ÷ 9.50

12.57x

* Primary Listing of Splunk.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Splunk is overvalued based on assets compared to the US Software industry average.
X
Value checks
We assess Splunk's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Splunk has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SPLK Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
26.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Splunk expected to grow at an attractive rate?
  • 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.
Growth vs Market Checks
  • 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.
  • Splunk's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SPLK Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SPLK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 36 Analysts 26.5%
NasdaqGS:SPLK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 36 Analysts 18.6%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 17.6%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SPLK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 36 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SPLK Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-01-31 4,988 1,202 2
2023-01-31 4,178 917 2
2022-01-31 3,341 670 8
2021-01-31 2,750 473 -235 36
2020-01-31 2,264 251 -323 36
NasdaqGS:SPLK Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-04-30 1,916 255 -313
2019-01-31 1,803 296 -276
2018-10-31 1,602 315 -313
2018-07-31 1,464 308 -287
2018-04-30 1,394 298 -194
2018-01-31 1,309 263 -190
2017-10-31 1,156 219 -298
2017-07-31 1,058 212 -361
2017-04-30 991 208 -369
2017-01-31 944 202 -347
2016-10-31 864 176 -360
2016-07-31 793 167 -340

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Splunk is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Splunk's revenue is expected to grow by 18.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SPLK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 36 Analyst Estimates (S&P Global) See Below

All data from Splunk Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SPLK Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-01-31
2023-01-31
2022-01-31 -0.51 -0.08 -0.95 2.00
2021-01-31 -1.24 -0.49 -1.95 9.00
2020-01-31 -2.05 -1.47 -3.11 10.00
NasdaqGS:SPLK Past Financials Data
Date (Data in USD Millions) EPS *
2019-04-30 -2.12
2019-01-31 -1.89
2018-10-31 -2.17
2018-07-31 -2.01
2018-04-30 -1.37
2018-01-31 -1.36
2017-10-31 -2.15
2017-07-31 -2.64
2017-04-30 -2.73
2017-01-31 -2.59
2016-10-31 -2.73
2016-07-31 -2.61

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Splunk is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Splunk's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Splunk has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SPLK Past Performance

  How has Splunk performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Splunk's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
Splunk's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Splunk Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SPLK Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-04-30 1,916.22 -312.51 1,331.33 480.40
2019-01-31 1,803.01 -275.58 1,252.33 437.83
2018-10-31 1,602.23 -313.42 1,176.95 390.45
2018-07-31 1,463.74 -287.38 1,091.73 347.15
2018-04-30 1,394.00 -193.59 988.42 312.55
2018-01-31 1,309.13 -190.22 934.18 298.06
2017-10-31 1,155.94 -297.59 896.00 287.82
2017-07-31 1,058.24 -361.41 862.90 301.30
2017-04-30 990.77 -369.42 822.05 296.63
2017-01-31 943.56 -347.46 781.40 295.85
2016-10-31 863.52 -360.31 759.55 285.68
2016-07-31 793.15 -339.79 714.70 254.26
2016-04-30 728.72 -308.48 668.31 235.29
2016-01-31 668.44 -278.77 626.93 215.31
2015-10-31 595.80 -256.48 558.99 194.38
2015-07-31 537.41 -232.05 506.95 178.24
2015-04-30 490.63 -237.55 482.64 164.84
2015-01-31 450.88 -217.12 442.51 147.57
2014-10-31 403.39 -192.72 406.84 129.72
2014-07-31 366.00 -160.72 365.64 109.14
2014-04-30 331.32 -113.63 309.53 91.17
2014-01-31 302.62 -79.01 269.21 75.90
2013-10-31 267.94 -52.54 225.50 62.92
2013-07-31 241.35 -41.46 200.01 55.03
2013-04-30 218.96 -32.35 178.45 48.21
2013-01-31 198.94 -36.68 157.70 41.85
2012-10-31 176.92 -31.80 139.51 35.90
2012-07-31 156.05 -29.88 123.58 31.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • 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.
  • 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.
X
Past performance checks
We assess Splunk's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Splunk has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SPLK Health

 How is Splunk's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Splunk's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Splunk's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Splunk Company Filings, last reported 1 month ago.

NasdaqGS:SPLK Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-04-30 1,426.03 1,871.85 2,675.44
2019-01-31 1,520.46 1,696.70 2,757.39
2018-10-31 1,421.87 1,680.32 2,671.50
2018-07-31 1,146.84 68.52 891.58
2018-04-30 1,118.54 71.66 950.15
2018-01-31 1,131.32 0.00 1,165.15
2017-10-31 771.71 77.83 1,058.39
2017-07-31 767.96 80.89 1,083.55
2017-04-30 763.73 83.94 1,087.23
2017-01-31 805.16 0.00 1,083.44
2016-10-31 814.17 87.57 1,027.00
2016-07-31 829.14 89.13 1,020.61
2016-04-30 833.05 0.00 1,022.49
2016-01-31 859.41 0.00 1,009.04
2015-10-31 840.95 0.00 948.53
2015-07-31 837.59 0.00 855.37
2015-04-30 814.09 0.00 865.14
2015-01-31 813.32 0.00 850.16
2014-10-31 797.89 0.00 796.39
2014-07-31 794.80 0.00 837.62
2014-04-30 783.77 0.00 826.99
2014-01-31 784.91 0.00 897.45
2013-10-31 250.08 0.00 351.90
2013-07-31 247.81 0.00 347.11
2013-04-30 237.98 0.00 331.25
2013-01-31 237.54 0.00 305.94
2012-10-31 224.37 0.00 273.32
2012-07-31 224.77 0.00 268.28
  • Splunk's level of debt (116%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 116% today).
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 -30.9% per year.
X
Financial health checks
We assess Splunk's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Splunk has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SPLK Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Splunk dividends. Estimated to be 0% next year.
If you bought $2,000 of Splunk shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SPLK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 36 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SPLK Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-01-31
2023-01-31
2022-01-31 0.00 4.00
2021-01-31 0.00 6.00
2020-01-31 0.00 6.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Splunk's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess Splunk's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Splunk afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Splunk has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SPLK Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Doug Merritt
COMPENSATION $13,505,795
AGE 54
TENURE AS CEO 3.6 years
CEO Bio

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 Operations at Splunk Inc. since May 2014 until November 19, 2015. Mr. Merritt served as an Senior Vice President of Products & Solutions Marketing at Cisco Systems, Inc. from 2012 to 2014. Previously, Mr. Merritt served in a number of executive roles and as a member of the extended Executive Board at SAP AG from 2005 to 2011. He served as President of SAP Labs North America, a subsidiary of SAP AG. He served as the Chief Executive Officer and President of Baynote Inc. from 2011 to 2012. He served as Head of Development of Software for The Business User of SAP AG since April 1, 2007. He served as Corporate Officer of SAP AG since April 1, 2007 and served as its Member of the Executive Board. For five years, he served multiple executive titles at SAP, where he served as an Executive Vice President of Global On Demand Applications. Mr. Merritt's other positions at SAP include Executive Vice President of Premier Customer Network from 2009 to 2010 and Executive Vice President of Business User Applications from 2005 to 2008. From 2001 to 2004, Mr. Merritt served as Group Vice President and General Manager of the Human Capital Management Product Division at PeopleSoft Inc. (acquired by Oracle Corporation). He also co-founded and served as President and Chief Executive Officer of Icarian, Inc. (since acquired by Workstream Corp.), a cloud-based company, from 1996 to 2001. He served in various leadership positions for Patrol Software (acquired by BMC Software), Powersoft (acquired by Sybase), Oracle Corporation and Accenture/Andersen Consulting. He serves as a Director of Birst Inc. He served as a Director of Baynote, Inc. until December 9, 2015. Mr. Merritt holds a B.S. from The University of the Pacific in Stockton, California.

CEO Compensation
  • Doug 's compensation has increased whilst company is loss making.
  • Doug 's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Splunk management team in years:

2.4
Average Tenure
52
Average Age
  • The tenure for the Splunk management team is about average.
Management Team

Doug Merritt

TITLE
CEO, President & Director
COMPENSATION
$14M
AGE
54
TENURE
3.6 yrs

Tim Tully

TITLE
Senior VP & CTO
COMPENSATION
$6M
AGE
40
TENURE
2.4 yrs

Lenny Stein

TITLE
Senior Vice President of Global Affairs
COMPENSATION
$5M
AGE
62
TENURE
0.8 yrs

Dave Conte

TITLE
Senior Vice President of Finance
COMPENSATION
$5M
AGE
52
TENURE
0.1 yrs

Susan St. Ledger

TITLE
President of Worldwide Field Operations
COMPENSATION
$9M
AGE
53
TENURE
2.4 yrs

Jason Child

TITLE
Senior VP & CFO
AGE
49
TENURE
0.1 yrs

Ammar Maraqa

TITLE
Senior VP of Business Operations & Strategy and GM of IoT Markets
TENURE
2.4 yrs

Declan Morris

TITLE
Chief Information Officer

Ken Tinsley

TITLE
Head of Investor Relations

Scott Morgan

TITLE
Senior VP
AGE
47
TENURE
2.4 yrs
Board of Directors Tenure

Average tenure and age of the Splunk board of directors in years:

6.2
Average Tenure
59
Average Age
  • The tenure for the Splunk board of directors is about average.
Board of Directors

Graham Smith

TITLE
Independent Chairman
COMPENSATION
$320K
AGE
58
TENURE
0.3 yrs

Doug Merritt

TITLE
CEO, President & Director
COMPENSATION
$14M
AGE
54
TENURE
3.6 yrs

John Connors

TITLE
Independent Director
COMPENSATION
$350K
AGE
59
TENURE
11.8 yrs

Steve Newberry

TITLE
Independent Director
COMPENSATION
$320K
AGE
64
TENURE
6.4 yrs

Patty Morrison

TITLE
Independent Director
COMPENSATION
$310K
AGE
59
TENURE
6.2 yrs

Ray Suorsa

TITLE
Member of Advisory Board

Ethan Galstad

TITLE
Member of Advisory Board

Diane Hagglund

TITLE
Member of Advisory Board

Frederick Felman

TITLE
Member of Advisory Board

Brent Chapman

TITLE
Member of Advisory Board
Who owns this company?
Recent Insider Trading
  • Splunk insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
13. Jun 19 Sell Scott Morgan Individual 12. Jun 19 12. Jun 19 -1,328 $115.23 $-153,025
28. Mar 19 Sell John And Kathy Connors Foundation, Endowment Arm Company 26. Mar 19 26. Mar 19 -9,000 $124.01 $-1,116,090
28. Mar 19 Sell John Connors Individual 26. Mar 19 26. Mar 19 -33,000 $124.12 $-4,095,960
12. Sep 18 Sell Douglas Merritt Individual 11. Sep 18 11. Sep 18 -11,677 $126.93 $-1,465,473
12. Sep 18 Sell Leonard Stein Individual 11. Sep 18 11. Sep 18 -5,302 $126.34 $-666,759
12. Sep 18 Sell David Conte Individual 11. Sep 18 11. Sep 18 -7,674 $126.95 $-965,045
13. Sep 18 Sell Timothy Tully Individual 11. Sep 18 11. Sep 18 -8,453 $126.80 $-1,066,788
12. Sep 18 Sell Susan St. Ledger Individual 11. Sep 18 11. Sep 18 -20,195 $126.97 $-2,535,058
X
Management checks
We assess Splunk's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Splunk has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SPLK News

Simply Wall St News

Interested In Splunk Inc. (NASDAQ:SPLK)? Here's How It Performed Recently

Examining Splunk Inc.'s (NASDAQ:SPLK) past track record of performance is a useful exercise for investors. … See our latest analysis for Splunk How Did SPLK's Recent Performance Stack Up Against Its Past? … Scanning growth from a sector-level, the US software industry has been growing its average earnings by double-digit 43% in the previous year, NasdaqGS:SPLK Income Statement, June 3rd 2019 Even though Splunk is currently unprofitable, it has a sufficient cash cushion (US$2.7b) to pay for its upcoming operating expenses over the next year.

Simply Wall St -

Estimating The Intrinsic Value Of Splunk Inc. (NASDAQ:SPLK)

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $289.70 $270.26 $484.89 $719.80 $986.40 $1.20k $1.38k $1.53k $1.66k $1.77k Growth Rate Estimate Source Analyst x17 Analyst x18 Analyst x19 Analyst x3 Analyst x2 Analyst x2 Est @ 14.56% Est @ 11.01% Est @ 8.53% Est @ 6.79% Present Value ($, Millions) Discounted @ 9.61% $264.30 $224.95 $368.22 $498.69 $623.49 $692.56 $723.85 $733.11 $725.88 $707.19 Present Value of 10-year Cash Flow (PVCF)= $5.56b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$1.8b × (1 + 2.7%) ÷ (9.6% – 2.7%) = US$26b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$26b ÷ ( 1 + 9.6%)10 = $10.56b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $16.12b. … NasdaqGS:SPLK Intrinsic value, May 14th 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

What Should Investors Know About Splunk Inc.'s (NASDAQ:SPLK) Growth?

Splunk Inc.'s (NASDAQ:SPLK) latest earnings update in January 2019 … that losses became smaller relative to the prior year's level

Simply Wall St -

Does Splunk Inc.'s (NASDAQ:SPLK) Debt Level Pose A Problem?

the key to their continued success lies in its financial health. … This article will examine Splunk’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Does Splunk Inc. (NASDAQ:SPLK) Generate Enough Cash?

I will take you through Splunk’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Free cash flow (FCF) is the amount of cash Splunk has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations. … The two ways to assess whether Splunk’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow

Simply Wall St -

Is Splunk's 202% Share Price Increase Well Justified?

Splunk isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … In the last 3 years Splunk saw its revenue grow at 31% per year. … Along the way, the share price gained 45% per year, a solid pop by our standards.

Simply Wall St -

Is Splunk Inc.'s (NASDAQ:SPLK) CEO Being Overpaid?

First, this article will compare CEO compensation with compensation at other large companies. … And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. … How Does Doug Merritt's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Splunk Inc. (NASDAQ:SPLK): Does The Earnings Decline Make It An Underperformer?

Below, I will run you through a simple sense check to build perspective on how Splunk is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its software industry peers. … Was SPLK's recent earnings decline worse than the long-term trend and the industry. … SPLK is loss-making, with the most recent trailing twelve-month earnings of -US$313.4m (from 31 October 2018), which compared to last year has become.

Simply Wall St -

What Investors Should Know About Splunk Inc.'s (NASDAQ:SPLK) Financial Strength

the key to extending previous success is in the health of the company’s financials. … This article will examine Splunk’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Are Insiders Selling Splunk Inc (NASDAQ:SPLK) Stock?

So shareholders might well want to know whether insiders have been buying or selling shares in Splunk Inc (NASDAQ:SPLK). … Although we don't gain confidence from insider selling, we note that this large sale was at well above current price of US$92.57 … Over the last year, we note insiders sold 189.42k shares worth US$21m

Simply Wall St -

SPLK Company Info

Description

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, analyze, and act on data regardless of format or source. The company offers Splunk Enterprise, a machine data platform with collection, indexing, search, reporting, analysis, alerting, monitoring, and data management capabilities; Splunk Cloud; and Splunk Light, which offers log search and analysis for small IT environments. It also provides Splunk Enterprise Security that addresses security threats and information, and event management; Splunk IT Service Intelligence, which monitors health and key performance indicators of critical IT and business services; Splunk User Behavior Analytics that detects cyber-attacks and insider threats; Splunk Phantom that automates and orchestrates incident response workflows; Splunk Machine Learning Toolkit; Splunk App for AWS that collects and analyzes data from amazon web services data sources; Splunk DB Connect to get business and enterprise context; and Cisco Firepower App for Splunk. Further, the company operates Splunkbase and Splunk Answers Websites, which provide an environment to share apps, collaborate on the use of its software, and provide community-based support and education, as well as offers application programming interfaces and software development kits. Additionally, it offers maintenance and customer support, training, and consulting and implementation services. The company serves cloud and online services, education, financial services, government, healthcare/pharmaceuticals, industrials/manufacturing, media/entertainment, retail/e-commerce, technology, and telecommunications industries. Splunk Inc. was incorporated in 2003 and is headquartered in San Francisco, California.

Details
Name: Splunk Inc.
SPLK
Exchange: NasdaqGS
Founded: 2003
$17,918,488,437
150,171,710
Website: http://www.splunk.com
Address: Splunk Inc.
270 Brannan Street,
San Francisco,
California, 94107,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SPLK Common Stock Nasdaq Global Select US USD 19. Apr 2012
LSE 0R09 Common Stock London Stock Exchange GB USD 19. Apr 2012
SWX SPLK Common Stock SIX Swiss Exchange CH CHF 19. Apr 2012
Number of employees
Current staff
Staff numbers
4,400
Splunk employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 00:41
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/06/07
Last earnings filing: 2019/06/06
Last earnings reported: 2019/04/30
Last annual earnings reported: 2019/01/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.