Now trading at a price of $15.75, Snap has moved 4.4% so far today.
Snap returned gains of 59.5% last year, with its stock price reaching a high of $15.95 and a low of $7.86. Over the same period, the stock outperformed the S&P 500 index by 44.1%. More recently, the company's 50-day average price was $10.93. Snap Inc. operates as a technology company in North America, Europe, and internationally. Based in Santa Monica, CA, the large-cap Technology company has 5,367 full time employees. Snap has not offered a dividend during the last year.
The Business Is Unprofitable and Its Balance Sheet Is Highly Leveraged:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $1,180 | $1,716 | $2,507 | $4,117 | $4,602 | $4,545 |
| Revenue Growth | n/a | 45.33% | 46.11% | 64.25% | 11.78% | -1.24% |
| Operating Margins | -106% | -60% | -34% | -12% | -30% | -28% |
| Net Margins | -106% | -60% | -38% | -12% | -31% | -30% |
| Net Income (MM) | -$1,256 | -$1,034 | -$945 | -$488 | -$1,430 | -$1,363 |
| Net Interest Expense (MM) | $4 | $59 | $97 | $240 | $21 | $22 |
| Depreciation & Amort. (MM) | $92 | $87 | $87 | $119 | $202 | $165 |
| Earnings Per Share | -$0.97 | -$0.75 | -$0.65 | -$0.31 | -$0.89 | -$0.87 |
| EPS Growth | n/a | 22.68% | 13.33% | 52.31% | -187.1% | 2.25% |
| Free Cash Flow (MM) | -$810 | -$341 | -$225 | $223 | $55 | $2 |
| Capital Expenditures (MM) | $120 | $36 | $58 | $70 | $129 | $205 |
| Current Ratio | 5.73 | 5.29 | 5.0 | 5.7 | 4.32 | 4.83 |
Snap 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 $0.14, the company has a forward P/E ratio of 78.1. In comparison, the average P/E ratio for the Technology sector is 35.0. Furthermore, Snap is likely overvalued compared to the book value of its equity, since its P/B ratio of 10.36 is higher than the sector average of 7.92.
Snap Has an Average Rating of Hold:
The 29 analysts following Snap have set target prices ranging from $6.5 to $14.85 per share, for an average of $9.54 with a hold rating. As of April 2023, the company is trading 14.6% away from its average target price, indicating that there is an analyst belief that shares are overpriced.
Snap has an above average percentage of its shares sold short because 8.3% of the company's shares are sold short. Institutions own 54.4% of the company's shares, and the insider ownership rate stands at 9.23%, suggesting a large amount of insider shareholders. The largest shareholder is FMR, LLC, whose 15% stake in the company is worth $3,203,650,784.
