Now trading at a price of $202.12, Snowflake has moved 12.8% so far today.
Snowflake returned gains of 15.9% last year, with its stock price reaching a high of $202.59 and a low of $107.13. Over the same period, the stock outperformed the S&P 500 index by 4.9%. More recently, the company's 50-day average price was $158.03. 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 7,834 full time employees. Snowflake has not offered a dividend during the last year.
The Firm Has a Declining EPS Growth Trend:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $265 | $592 | $1,219 | $2,066 | $2,806 | $3,626 |
| Gross Margins | 56% | 59% | 62% | 65% | 68% | 67% |
| Net Margins | -132% | -91% | -56% | -39% | -30% | -35% |
| Net Income (M) | -$349 | -$539 | -$680 | -$798 | -$838 | -$1,286 |
| Net Interest Expense (M) | $12 | $8 | $9 | $74 | $201 | -$35 |
| Depreciation & Amort. (M) | $3 | $10 | $21 | $64 | $120 | $86 |
| Diluted Shares (M) | 334 | 303 | 320 | 329 | 328 | 333 |
| Earnings Per Share | -$1.04 | -$1.78 | -$2.12 | -$2.42 | -$2.55 | -$3.86 |
| EPS Growth | n/a | -71.15% | -19.1% | -14.15% | -5.37% | -51.37% |
| Free Cash Flow (M) | -$47 | -$80 | $94 | $521 | $813 | $913 |
| CAPEX (M) | $4 | $35 | $16 | $25 | $35 | $46 |
| Current Ratio | 9.11 | 4.49 | 3.08 | 2.12 | 1.88 | 1.78 |
Snowflake has rapidly growing revenues and increasing reinvestment in the business, generally positive cash flows, and a decent current ratio of 1.78. However, the firm has declining EPS growth. Finally, we note that Snowflake has similar gross margins to its peers.
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 $0.93, the company has a forward P/E ratio of 169.9. In comparison, the average P/E ratio for the Technology sector is 30.44. Furthermore, Snowflake is likely overvalued compared to the book value of its equity, since its P/B ratio of 22.5 is higher than the sector average of 4.19. Ultimately, Snowflake's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Snowflake Has an Analyst Consensus of Some Upside Potential:
The 45 analysts following Snowflake have set target prices ranging from $115.0 to $440.0 per share, for an average of $219.83 with a buy rating. The company is trading -8.1% 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 2.9% of the company's shares are sold short. Institutions own 69.1% of the company's shares, and the insider ownership rate stands at 4.47%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 8% stake in the company is worth $5,496,493,188.
