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SNOW

Snowflake NYSE:SNOW Stock Report

Last Price

US$141.49

Market Cap

US$44.5b

7D

-10.7%

1Y

-39.4%

Updated

22 May, 2022

Data

Company Financials +
SNOW fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance0/6
Financial Health6/6
Dividends0/6

SNOW Stock Overview

Snowflake Inc. provides a cloud-based data platform in the United States and internationally.

Snowflake Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Snowflake
Historical stock prices
Current Share PriceUS$141.49
52 Week HighUS$405.00
52 Week LowUS$126.01
Beta0
1 Month Change-18.59%
3 Month Change-48.32%
1 Year Change-39.38%
3 Year Changen/a
5 Year Changen/a
Change since IPO-44.28%

Recent News & Updates

May 15

Snowflake: Finally, This Software Titan Is Worth A Nibble

Shares of Snowflake have dropped more than 50% year-to-date. Long one of the most expensive names in the enterprise software industry, Snowflake is now trading at a reasonable multiple of 2023 revenue. The company still maintains massive ~2x y/y revenue growth, and is pointing to ~60% y/y growth in 2022. Its inherently high-margin software business model has already allowed Snowflake to achieve virtually breakeven pro forma operating margins, a rarity for a company growing this quickly.

Apr 30

Snowflake Stock Is Finally A Buy: Aggressive Guidance To Get More Aggressive

Snowflake is one of the highest quality names in the tech sector. I didn't expect the stock to come down as much as it has, and the company is also set to aggressively increase long-term guidance. At recent prices, I could see the stock returning 20% annualized over the long term - a stunning reward proposition for such a high quality name. Snowflake may lead tech stocks higher as the pessimism fades in the sector.

Apr 14

Snowflake: Price Meltdown Opens Up A Decent Entry Point

Snowflake is one of the fastest-growing enterprise software companies in history. However, management's guidance for a sharp deceleration in growth is causing a meltdown in the stock. While Snowflake's valuation has moderated a lot, it may go lower in the near term. If you are pondering a long-term investment, Snowflake is a fine buy here. In this note, we will analyze Snowflake's Q4 numbers and evaluate its future prospects. I rate Snowflake a buy in the $180s.

Shareholder Returns

SNOWUS ITUS Market
7D-10.7%-1.2%-2.7%
1Y-39.4%-28.1%-12.9%

Return vs Industry: SNOW underperformed the US IT industry which returned -28.1% over the past year.

Return vs Market: SNOW underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is SNOW's price volatile compared to industry and market?
SNOW volatility
SNOW Average Weekly Movement13.4%
IT Industry Average Movement10.3%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: SNOW is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: SNOW's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
20123,992Frank Slootmanhttps://www.snowflake.com

Snowflake Inc. provides a cloud-based data platform in the United States and internationally. The company’s platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data. Its platform is used by various organizations of sizes in a range of industries.

Snowflake Fundamentals Summary

How do Snowflake's earnings and revenue compare to its market cap?
SNOW fundamental statistics
Market CapUS$44.51b
Earnings (TTM)-US$679.95m
Revenue (TTM)US$1.22b

36.5x

P/S Ratio

-65.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SNOW income statement (TTM)
RevenueUS$1.22b
Cost of RevenueUS$458.43m
Gross ProfitUS$760.89m
Other ExpensesUS$1.44b
Earnings-US$679.95m

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

May 25, 2022

Earnings per share (EPS)-2.16
Gross Margin62.40%
Net Profit Margin-55.76%
Debt/Equity Ratio0%

How did SNOW perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SNOW ($141.49) is trading below our estimate of fair value ($308.22)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SNOW is overvalued based on its PB Ratio (8.8x) compared to the US IT industry average (3.1x).


Future Growth

How is Snowflake forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


23.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SNOW's revenue (32.4% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: SNOW's revenue (32.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SNOW's Return on Equity is forecast to be low in 3 years time (0.1%).


Past Performance

How has Snowflake performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-26.1%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: SNOW is currently unprofitable.

Growing Profit Margin: SNOW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if SNOW's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: SNOW is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (21.4%).


Return on Equity

High ROE: SNOW has a negative Return on Equity (-13.47%), as it is currently unprofitable.


Financial Health

How is Snowflake's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: SNOW's short term assets ($4.6B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: SNOW's short term assets ($4.6B) exceed its long term liabilities ($203.6M).


Debt to Equity History and Analysis

Debt Level: SNOW is debt free.

Reducing Debt: SNOW has not had any debt for 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: Whilst unprofitable SNOW has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SNOW is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 70.6% per year.


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if SNOW's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SNOW has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Frank Slootman (62 yo)

3.08yrs

Tenure

US$750,708

Compensation

Mr. Frank Slootman serves as Member of Advisory Board at Lacework, Inc. He serves as Director of Maplebear Inc. (alternate name: Instacart) since March 2021. He has been Chief Executive Officer of Snowflak...


CEO Compensation Analysis

Compensation vs Market: Frank's total compensation ($USD750.71K) is below average for companies of similar size in the US market ($USD13.34M).

Compensation vs Earnings: Frank's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SNOW's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: SNOW's board of directors are considered experienced (3.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SNOW 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 9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Snowflake Inc.
  • Ticker: SNOW
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Implied Market Cap: US$44.513b
  • Shares outstanding: 314.60m
  • Website: https://www.snowflake.com

Number of Employees


Location

  • Snowflake Inc.
  • 106 East Babcock Street
  • Suite 3A
  • Bozeman
  • Montana
  • 59715
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/22 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/01/31
Annual Earnings2022/01/31


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.