| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 2/6 |
| Past Performance | 0/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
SNOW Stock Overview
Snowflake Inc. provides a cloud-based data platform in the United States and internationally.
Snowflake Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$141.49 |
| 52 Week High | US$405.00 |
| 52 Week Low | US$126.01 |
| Beta | 0 |
| 1 Month Change | -18.59% |
| 3 Month Change | -48.32% |
| 1 Year Change | -39.38% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | -44.28% |
Recent News & Updates
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.
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.
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
| SNOW | US IT | US 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
| SNOW volatility | |
|---|---|
| SNOW Average Weekly Movement | 13.4% |
| IT Industry Average Movement | 10.3% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.8% |
| 10% least volatile stocks in US Market | 2.9% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2012 | 3,992 | Frank Slootman | https://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
| SNOW fundamental statistics | |
|---|---|
| Market Cap | US$44.51b |
| Earnings (TTM) | -US$679.95m |
| Revenue (TTM) | US$1.22b |
36.5x
P/S Ratio-65.5x
P/E RatioIs SNOW overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SNOW income statement (TTM) | |
|---|---|
| Revenue | US$1.22b |
| Cost of Revenue | US$458.43m |
| Gross Profit | US$760.89m |
| Other Expenses | US$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 Margin | 62.40% |
| Net Profit Margin | -55.76% |
| Debt/Equity Ratio | 0% |
How did SNOW perform over the long term?
See historical performance and comparisonValuation
Is Snowflake undervalued compared to its fair value and its price relative to the market?
Valuation Score
2/6Valuation 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
2/6Future 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
0/6Past 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
6/6Financial 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
0/6Dividend 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/22 00:00 |
| End of Day Share Price | 2022/05/20 00:00 |
| Earnings | 2022/01/31 |
| Annual Earnings | 2022/01/31 |
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.