Pinterest, Inc. (NYSE: PINS)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001506293
Market Cap 16.95 Bn
P/B 3.51
P/E 8.53
P/S 4.18
ROIC (Qtr) 5.93
Div Yield % 0.00
Rev 1y % (Qtr) 16.79
Total Debt (Qtr) 205.24 Mn
Debt/Equity (Qtr) 0.04

About

Pinterest, Inc., often referred to as Pinterest, operates in the technology industry, offering a visual search and discovery platform that enables users to explore and save ideas, products, and services. The company went public in 2019, and its Class A common stock trades on the New York Stock Exchange under the symbol PINS. Pinterest's primary service is a mobile application and website that allows users to browse and save content, known as "Pins," to virtual boards. The platform has gained popularity among women, representing two-thirds of the...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 1.15B provides robust 5.59x coverage of total debt 205.24M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 5.41B provides 26.35x coverage of total debt 205.24M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 1.12B exceeds capital expenditure of 25.32M by 44.30x, indicating strong organic growth funding capability.
  • Short-term investments of 1.54B provide solid 4.58x coverage of other current liabilities 335.74M, indicating strong liquidity.
  • Tangible assets of 5.41B provide robust 16.11x coverage of other current liabilities 335.74M, indicating strong asset backing.

Bear case

  • Operating cash flow of 1.15B barely covers its investment activities of (136.42M), with a coverage ratio of -8.41, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (136.42M) provide weak support for R&D spending of 1.38B, which is -0.10x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 1.15B shows concerning coverage of stock compensation expenses of 848.71M, with a 1.35 ratio indicating potential earnings quality issues.
  • Operating cash flow of 1.15B provides minimal -0.72x coverage of tax expenses of (1.59B), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Retained earnings of (148.38M) provide limited buffer against comprehensive income items of 3.83M, which is -38.76x, indicating elevated exposure to market risks.

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 4,538.16 Bn 131.46 27.23 33.71 Bn
2 META Meta Platforms, Inc. 1,747.49 Bn 74.30 23.25 51.06 Bn
3 SPOT Spotify Technology S.A. 103.00 Bn 62.32 5.18 2.57 Bn
4 BIDU Baidu, Inc. 62.73 Bn 49.63 3.42 13.66 Bn
5 RDDT Reddit, Inc. 32.18 Bn 92.16 16.90 0.03 Bn
6 NBIS Nebius Group N.V. 27.81 Bn 127.53 81.80 4.51 Bn
7 TME Tencent Music Entertainment Group 24.66 Bn 15.77 5.54 0.54 Bn
8 PINS Pinterest, Inc. 16.95 Bn 8.53 4.18 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.88 1.10
EV to Cash from Ops. EV/CFO 13.84 -3.08
EV to Debt EV to Debt 77.32 28.98
EV to EBIT EV/EBIT 56.16 -26.54
EV to EBITDA EV/EBITDA 51.95 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF 14.15 -67.01
EV to Market Cap EV to Market Cap 0.94 0.90
EV to Revenue EV/Rev 3.91 61.25
Price to Book Value [P/B] P/B 3.51 1.56
Price to Earnings [P/E] P/E 8.53 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.33
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -8.92
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) -2.51 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -0.90 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 9.35 175.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 1,291.72 31.53
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 126.30 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 146.84 32.66
EBT Growth (1y) % EBT 1y % (Qtr) 63.32 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) 815.62 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) 18.85 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 18.35 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.74 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 2.66 1.54
Current Ratio Curr Ratio (Qtr) 8.36 3.38
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 -0.39
Interest Cover Ratio Int Coverage (Qtr) -2.51 -202.56
Times Interest Earned Times Interest Earned (Qtr) -2.51 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.60 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) 6.97 -4,786.62
EBT Margin % EBT Margin % (Qtr) 9.74 -5,002.12
Gross Margin % Gross Margin % (Qtr) 80.00 58.65
Net Profit Margin % Net Margin % (Qtr) 49.00 -5,003.08