About Snap Inc.
Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and snaps. It also provides Snapchat+, Lens+, and Snapchat Platinum, a subscription service that provides subscribers access to exclusive, experimental, and pre-release features; Spectacles, an augmented reality (AR) glasses; and advertising products, including AR ads and Snap ads comprises a single image or video ads, collection ads, dynamic ads, story ads, commercials, sponsored snaps, and promoted places. In addition, the company offers campaign management and delivery, an advertising platform that provides automated, sophisticated, and scalable ad buying and campaign management; and measuring advertising effectiveness solutions. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.
Snap Inc. (SNAP) is a Communication Services company in the Internet Content & Information industry with a market capitalisation of $9.6B.
- Sector
- Communication Services
- Industry
- Internet Content & Information
- Market cap
- $9.6B
- Forward P/E
- 7.32
- EPS (TTM)
- $-0.19
- Revenue (TTM)
- $6.4B
- Free cash flow
- $714.3M
- Profit margin
- -4.9%
- Beta
- 1.05
- Shares outstanding
- 1.4B
Financial health: Fair5/10
5 strengths, 5 concerns. Weakest points: debt to equity, net debt vs cash flow, return on equity and 2 more.
- Debt to equity: 1.55 (Concern, benchmark < 0.5) — Debt of 1.55x equity is high against the 0.5x benchmark. It has been broadly flat over the last 4 years.
- Net debt vs cash flow: 5.7y (Concern, benchmark < 4 years) — Net debt of $2.5B is 5.7x annual free cash flow — about 6 years of cash flow to repay.
- Current ratio: 3.56 (Strong, benchmark > 1.5) — Short-term assets cover 3.56x short-term liabilities, against Graham's 1.5x floor. It has deteriorated over the last 4 years.
- Return on equity: -15.6% (Concern, benchmark > 15%) — Earns -15.6% on shareholder equity, well short of the > 15% mark.
- Gross margin: 57.3% (Strong, benchmark > 40%) — Keeps 57.3% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: -4.9% (Concern, benchmark > 10%) — Turns -4.9% of revenue into profit, well short of the > 10% mark.
- Free cash flow: $437.2M (Strong, benchmark positive) — Generated $437.2M of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 18.9% (Strong, benchmark > 10%) — Revenue changed 18.9% year on year, comfortably past the > 10% mark.
- Earnings growth: 34.0% (Strong, benchmark > 10%) — Earnings changed 34.0% year on year, comfortably past the > 10% mark.
- PEG ratio: 508.87 (Concern, benchmark < 1) — At 508.87, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.