Snowflake Inc. (NYSE: SNOW)

Sector: Technology Industry: Software - Application CIK: 0001640147
Market Cap 73.37 Bn
P/B 34.40
P/E -54.36
P/S 16.72
ROIC (Qtr) -30.81
Div Yield % 0.00
Rev 1y % (Qtr) 28.75
Total Debt (Qtr) 2.69 Bn
Debt/Equity (Qtr) 1.26

About

Snowflake Inc., also known by its stock symbol SNOW, operates in the data warehousing and analytics industry, providing a cloud-native platform for data storage, processing, and analysis. The company's platform aims to help organizations unlock the value of their data by offering a scalable, secure, and governed way to store, process, and analyze large amounts of data. Snowflake's platform is built on a cloud-native architecture that takes advantage of the scalability and performance of public cloud infrastructure. This platform consists of three...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 1.94B provide 48.29x coverage of short-term debt 40.21M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 873.51M provides exceptional 201.69x coverage of minority interest expenses 4.33M, showing strong core operations.
  • Operating cash flow of 873.51M provides exceptional 105.37x coverage of interest expenses 8.29M, showing strong debt service capability.
  • Robust free cash flow of 770.67M exceeds capital expenditure of 102.84M by 7.49x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 6.80B provides 2.53x coverage of total debt 2.69B, indicating robust asset backing and low credit risk.

Bear case

  • Investment activities of 117.89M provide weak support for R&D spending of 1.95B, which is 0.06x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 1.94B provide limited coverage of acquisition spending of (177.66M), which is -10.93x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 873.51M provides insufficient coverage of deferred revenue obligations of 2.43B, which is 0.36x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 873.51M shows concerning coverage of stock compensation expenses of 1.62B, with a 0.54 ratio indicating potential earnings quality issues.
  • Operating earnings of (1.34B) show weak coverage of depreciation charges of 278.98M, with a -4.79 ratio indicating high capital intensity and potential reinvestment needs.

Geographical Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 9.01 2.65
EV to Cash from Ops. EV/CFO 84.92 13.37
EV to Debt EV to Debt 27.62 57.69
EV to EBIT EV/EBIT -55.52 19.12
EV to EBITDA EV/EBITDA -60.57 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 96.25 14.69
EV to Market Cap EV to Market Cap 1.01 -92.28
EV to Revenue EV/Rev 16.91 4.60
Price to Book Value [P/B] P/B 34.40 4.26
Price to Earnings [P/E] P/E -54.36 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) -161.17 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -30.96 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -9.65 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -19.03 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -9.22 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) -19.01 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) -19.68 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) -18.88 123.84
FCF Growth (1y) % FCF 1y % (Qtr) -2.83 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 28.42 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.53 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.57 3.75
Current Ratio Curr Ratio (Qtr) 1.37 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 1.26 0.17
Interest Cover Ratio Int Coverage (Qtr) -161.17 -52.32
Times Interest Earned Times Interest Earned (Qtr) -161.17 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -24.10 -100.06
EBIT Margin % EBIT Margin % (Qtr) -30.46 -164.24
EBT Margin % EBT Margin % (Qtr) -30.65 -116.94
Gross Margin % Gross Margin % (Qtr) 67.10 58.20
Net Profit Margin % Net Margin % (Qtr) -30.80 -121.65