Snap, Inc. Class AFind Ratings Reports
SNAP INC's gross profit margin for the third quarter of its fiscal year 2021 is essentially unchanged when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the subsector when comparing revenue growth, but not when comparing net income growth. SNAP INC is extremely liquid. Currently, the Quick Ratio is 5.44 which clearly shows the ability to cover any short-term cash needs. SNAP managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 56.45% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q3 FY21||Q3 FY20|
|Net Sales ($mil)||1067.47||678.67|
|Net Income ($mil)||-71.96||-199.85|
|Balance Sheet||Q3 FY21||Q3 FY20|
|Cash & Equiv. ($mil)||3481.82||2725.01|
|Total Assets ($mil)||7111.17||4817.77|
|Total Debt ($mil)||2600.78||1978.35|
|Profitability||Q3 FY21||Q3 FY20|
|Gross Profit Margin||58.91||57.64|
|Return on Assets||-8.76||-22.26|
|Return on Equity||-18.13||-48.77|
|Debt||Q3 FY21||Q3 FY20|
|Share Data||Q3 FY21||Q3 FY20|
|Shares outstanding (mil)||1605.15||1484.72|
|Div / share||0.0||0.0|
|Book value / share||2.14||1.48|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2.1430038E7||1.6868204E7|
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 23.17 indicates a significant premium versus the S&P 500 average of 4.73 and a significant discount versus the subsector average of 28.59. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. The valuation analysis reveals that, SNAP INC seems to be trading at a premium to investment alternatives.
|SNAP NM||Peers 79.82||SNAP 1509.88||Peers 168.11|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
SNAP's P/E is negative making this valuation measure meaningless.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
SNAP is trading at a significant premium to its peers.
|SNAP 85.62||Peers 735.05||SNAP NA||Peers 1.36|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
SNAP is trading at a significant discount to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|SNAP 23.17||Peers 28.59||SNAP 44.00||Peers 114.72|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
SNAP is trading at a discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, SNAP is expected to significantly trail its peers on the basis of its earnings growth rate.
|SNAP 21.37||Peers 16.00||SNAP 73.01||Peers 46.15|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
SNAP is trading at a significant premium to its subsector.
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share.
SNAP has a sales growth rate that significantly exceeds its peers.