Snowflake may be overvalued with poor growth indicators, but the 39 analysts following the company give it an average rating of buy. The analysts have set target prices ranging from $105.0 to $500.0 per share, for an average of $180.67. At today's price of $139.19, Snowflake is trading -22.96% away from its average target price, suggesting there is an analyst consensus of strong upside potential.
Snowflake Inc. provides a cloud-based data platform for various organizations in the United States and internationally. Based in Bozeman, MT, the large-cap Technology company has 5,884 full time employees. Snowflake has not offered a dividend during the last year.
Snowflake does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of 1.01, the company has a forward P/E ratio of 137.8. In comparison, the average P/E ratio for the Technology sector is 27.16. Furthermore, Snowflake is likely overvalued compared to its book value, since its P/B ratio of 8.2 is higher than the sector average of 6.23.
If analysts are giving the the company a decent rating despite its hefty price point, it could be related to its strong cash flows. They might also believe that Snowflake's positive margin growth trend will continue.
| 2020-01-31 | 2021-01-31 | 2022-01-31 | 2023-01-31 | |
|---|---|---|---|---|
| Revenue (MM) | $265 | $592 | $1,219 | $2,066 |
| Revenue Growth | n/a | 123.63% | 105.95% | 69.41% |
| Gross Margins | 56.0% | 59.0% | 62.4% | 65.3% |
| Gross Margins Growth | n/a | 5.36% | 5.76% | 4.65% |
| Operating Margins | -135.3% | -91.9% | -58.6% | -40.8% |
| Operating Margins Growth | n/a | 32.08% | 36.24% | 30.38% |
| Net Margins | -131.65% | -91.06% | -55.76% | -38.57% |
| Net Margins Growth | n/a | 30.83% | 38.77% | 30.83% |
| Earnings Per Share | -$1.63 | -$3.81 | -$2.26 | -$2.49 |
| EPS Growth | n/a | -133.74% | 40.68% | -10.18% |
| Diluted Shares (MM) | 214 | 142 | 300 | 325 |
| Free Cash Flow (MM) | -$199 | -$94 | $57 | $496 |
| FCF Growth | n/a | 52.8% | 160.4% | 772.09% |
| Capital Expenditures (MM) | -$23 | -$49 | -$53 | -$50 |
