Now trading at a price of $198.64, Snowflake has moved -1.1% so far today.
Snowflake returned gains of 41.0% last year, with its stock price reaching a high of $202.83 and a low of $119.27. Over the same period, the stock outperformed the S&P 500 index by 18.5%. More recently, the company's 50-day average price was $164.38. 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 6,783 full time employees. Snowflake has not offered a dividend during the last year.
The Business Has Consistently Weak Margins:
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Revenue (MM) | $592 | $1,219 | $2,066 |
| Revenue Growth | n/a | 105.95% | 69.41% |
| Operating Margins | -91% | -56% | -40% |
| Net Margins | -91% | -56% | -39% |
| Net Income (MM) | -$539 | -$680 | -$798 |
| Net Interest Expense (MM) | $8 | $29 | $74 |
| Depreciation & Amort. (MM) | $10 | $21 | $64 |
| Free Cash Flow (MM) | -$80 | $94 | $521 |
| Capital Expenditures (MM) | $35 | $16 | $25 |
| Current Ratio | 4.49 | 3.08 | 2.3 |
| Total Debt (MM) | $110 | $139 | $261 |
Snowflake has healthy debt levels, growing revenues and decreasing reinvestment in the business, and irregular cash flows. However, the firm has consistently poor operating margins with a positive growth rate. Finally, we note that Snowflake has positive expected EPS Growth.
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 $1.13, the company has a forward P/E ratio of 145.5. In comparison, the average P/E ratio for the Technology sector is 35.0. Furthermore, Snowflake is likely overvalued compared to the book value of its equity, since its P/B ratio of 13.26 is higher than the sector average of 7.92. Overall, Snowflake's lofty valuation in terms of earnings and assets is to some extent attenuated by its strong cash flow trend and reasonable levels of debt.
Snowflake Has an Analyst Consensus of Some Upside Potential:
The 39 analysts following Snowflake have set target prices ranging from $120.0 to $600.0 per share, for an average of $215.82 with a buy rating. As of April 2023, the company is trading -23.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Snowflake has an average amount of shares sold short because 3.1% of the company's shares are sold short. Institutions own 65.8% of the company's shares, and the insider ownership rate stands at 4.59%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 6% stake in the company is worth $3,859,354,697.
