Market Inference Overview — SPLK Stock

Now trading at a price of $83.46, Splunk has moved -1.7% so far today on a volume of 608,393, compared to its average of 2,419,591. In contrast, the S&P 500 index moved 1.8%.

Shares of Splunk have a 50-day average price of $82.77 as of January 2022. Splunk Inc., together with its subsidiaries, provides software and cloud solutions that deliver and operationalize insights from the data generated by digital systems in the United States and internationally. The large-cap Technology company has 7,000 full time employees and is based in San Francisco, CA. Splunk has not offered any dividends in the last year.

Overview of the Company's an Unconvincing Cash Flow History with a Downwards Trend:

2019-01-31 2020-01-31 2021-01-31 2022-01-31
Revenue (MM) $1,803 $2,359 $2,229 $2,674
Revenue Growth n/a 30.83% -5.49% 19.93%
Gross Margins 80.9% 81.8% 75.4% 72.6%
Gross Margins Growth n/a 1.11% -7.82% -3.71%
Operating Margins -13.9% -12.2% -35.0% -42.9%
Operating Margins Growth n/a 12.23% -186.89% -22.57%
Earnings Per Share -$1.89 -$2.22 -$5.68 -$8.29
EPS Growth n/a -17.46% -155.86% -45.95%
Free Cash Flow (MM) $273 -$391 -$243 $108
FCF Growth n/a -243.2% 38.02% 144.53%
Capital Expenditures (MM) -$23 -$104 -$52 -$20

Splunk Is Too Expensive at Current Levels:

Compared to the Technology sector's average of 26.5, Splunk has a trailing twelve month price to earnings (P/E) ratio of -14.7 and, based on its EPS guidance of 0.21, an expected P/E ratio of 397.4.

The firm's price to earnings growth (PEG) is -1.57, because its current P/E ratio is negative — so in this case the PEG ratio is not a meaningful indicator of the company's valuation.

Splunk's price to book (P/B) ratio is 8.5 compared to its sector average of 5.57. The company is likley overvalued in terms of its net tangible assets.

Splunk Is the Subject of Mixed Market Indicators:

34 analysts are following Splunk and have set target prices ranging from $86 to $191 per share. On average, they have given the company a rating of buy. At the current price of $83.46, SPLK is trading -34.08% away from its average analyst target price of $126.6 per share, implying an analyst consensus of strong upside potential for the stock.

The company has an average amount of shares sold short since 5.4% of the company's shares are tied to short positions. Institutions own 87.6% of Splunk's shares, while the insider ownership rate stands at 0.68%. The biggest shareholder is the Vanguard Group, Inc. with a 9% stake in the company worth approximately $1,353,707,183.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.