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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Pinterest, Inc. (XNYS:PINS) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
PINS
Name:
PINTEREST, INC. (XNYS:PINS)
Sector:
206.49M
Industry:
Internet Content & Information
CEO:
Mr. Benjamin Silbermann
Total Employees:
3,225
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -106.59% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF PINTEREST, INC.(PINS) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND INTERNET CONTENT & INFORMATION INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
22.07
One Month Price Target:
$22.21
Six Month Price Target :
$22.88
Likely Price in One Year's Time:
Ticker:
$23.69
Likely Trading Range Today Under (Normal Volatility)
$21.92
Price Upper limit ($) :
$22.28
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$19.97
This week:
$17.37
This month :
$12.66
Other Primary facts
Market Cap:
14.88B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
673.46M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
36.13%
-23.64%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$31.83
$27.32
$12.31
$16.82
Medium risk (<10%) entry points
Buy Call
Sell Call
$25.86
Buy Put:
Sell Put:
$24.90
$18.27
$19.24
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
PINS
Sharpe Ratio:
2.73%
Comparison:
PINS, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 8633.24% higher than the industry
& ratio is 19.84% higher than the market/S&P 500 average
Average Returns/Yield of
PINS
Daily returns:
0.14%
Weekly returns:
0.69%
Monthly returns:
2.75%
Yearly returns:
0.13%
Comparison of returns:
Average annual returns/yield (last 3 years) is 24445.56% above industry average
Classification:
PINS, is amongst the top 20% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.76
Statistical test of Returns:
PINS has not yielded statistically significant higher returns when compared to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
4.71%
Weekly Volatility:
10.53%
Monthly Volatility:
21.06%
Yearly Volatility:
72.95%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
4.03%
Volatility in last five trading days has been -14.40% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-9.53%
Weekly VaR:
-21.32%
Monthly VaR:
-42.63%
How Much Can the price of
PINS
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-36%
Worst case (decline):
>85%
This translates to price declining to:
$14.10
This translates to price declining to:
$3.31
Severe Crash Probability
Risk of crash in next 6/12 months: Very high (>70%)
What is Value at Risk (VaR)?
Risk Fundamentals
PINS is a 200.90% riskier investment compared to the market/S&P 500 & is 157.78% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 14.97% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
PINS
Beta in relation to market/S&P 500--1.09
Expected beta in 1 year's time:
0.976
Expected beta in 3 year's time:
1.381
Unlevered (debt free) Beta:
1.028
Beta in relation to Nasdaq (XNAS):
1.607
Beta in relation to all global stocks::
1.048
Beta Comparison & Analysis
Beta of competitors/peers::
1.008
Beta is 8.58% higher than peers
Average Industry Beta:
1.399
Beta is -21.77% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
11.98%
Sustainable growth rate is -63.50% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.223
Alpha is -277.41% below industry average alpha yield
Alpha is 1423% higher than market/& is unsustainably high
Analysis of Cost of Capital of
PINS
Equity cost of capital:
0.106
Equity cost of capital is -16.38% below industry mean WACC
Unlevered (without debt) cost of capital:
10.00%
Before-tax cost of debt:
4.82%
After-tax cost of debt:
3.81%
Overall debt rating:
Lower BB medium grade (Fifth highest grade)
Weighted average cost of capital (WACC):
3.81%
WACC is -2.16% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$3.96
Revenue growth rate per share of (3Y):
4.8
Annual revenue growth rate is -12.75% below industry average
EPS:
$0.54
Expected Annual growth rate of EPS (3Y):
0.00%
-
Free cash flow (FCF) per share:
$1.01
-
-
Debt per share
$0.30
EBITDA per share
$0.56
Valuation Analysis Today of
PINS
P/E Ratio:
89.97
P/E Ratio of Competitors/Peers:
44.4
P/E ratio is 102.64% higher than main peers & is 137.23% higher than the industry
Stock price/value with industry average P/E ratio: $20.48
PINS is 7.77% overvalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
5.57
Price to sales ratio is 9.13% above the industry mean
P/B (Price to book value ratio):
4.8
Price to free cash flow: 21.93
-
Net income growth rate (3Y):
-464.66%
Net income growth rate is 487.48% higher than the average industry net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
6.54%
Net debt to equity ratio:
-47.79%
Debt to assets ratio:
5.69%
Net debt to assets ratio:
-41.63%
Debt-to-asset ratio is -86.96% below industry average
Ability to repay debt:
Interest coverage ratio:
38.64
Interest coverage ratio is 219.67% more than industry average
Looking forward:
Debt growth rate:
80.07%
Annual debt growth is -81% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.534
Statistical significance of correlation:
PINS has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.473
Stock price is 12.80% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.473
Correlation of price movement with Nasdaq (^IXIC):
-0.071
Covariance of price movement with the market:
-0.194
Kurtosis
8.231
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.671
Returns are right (positive) skewed; mean returns are greater than median and mode returns
Fundamental Analysis & Dupont Analysis of
PINS
Gross Profit Margin Ratio:
317%
Operating Profit Margin Ratio:
12.95%
Operating profit margin is 2193.87% higher than the industry
Net Profit Margin Ratio:
317%
Effective Tax Rate:
2.05%
Effective tax rate is -84.05% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
10.74%
Return on equity (ROE) is -224.35% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
9.35%
Return on assets (ROA) is 502.10% higher than the industry
Financial Leverage:
1.1x
Current Ratio:
14.22
Current ratio is 297.23% above industry average
Cash Conversion Cycle (days):
80.3
Cash conversion cycle is 18.77% above industry average
The remaining useful life of property plant & equipment is: 3.5 years
Stock based compensation to net income ratio:
22.01%
In-depth Efficiency Analysis
Revenue generated per employee:
827.2K
Each employee generates -7% less revenue than industry average revenue per employee
EBITDA generated per employee:
117.1K
Each employee generates 12% more EBITDA than industry average revenue per employee
Profit generated per employee:
103.2K
Each employee generates 132% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
64.0K
Each employee generates -36% less free cash flow than industry average revenue per employee
Assets/Capital per employee
108.8K
Each employee generates -36% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 28.72%
Growth rate in R&D investment/expenditure is -588.16% lower than the industry
Competitors/Peer firms of
PINS
ROBLOX CORPORATION (XNYS:RBLX)
DOORDASH, INC. (XNYS:DASH)
Orange SA (XNYS:ORAN)
BCE
Chunghwa Telecom Co., Ltd. (XNYS:CHT)
Spotify Technology SA (XNYS:SPOT)
TELUS Corporation (XNYS:TU)
America Mobile (XNYS:AMOV)
TENCENT MUSIC ENTERTAINMENT GROUP (XNYS:TME)
Current Analyst Ratings
Strong buy�0%
Buy�0%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: -
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
2.67B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
541.92M
2.13B
804.08M
291.34M
976.25M
684.91M
-
1.78B
4.14M
9.77M
27.94M
377.50M
345.43M
332.83M
339.80M
6.97M
332.83M
Statement of Cash Flow
Date:
Period:
7.22M
Differed Income Tax :
-
Stock Based Compensation :
73.24M
Change in Working Capital :
135.23M
Accounts Receivables:
180.20M
Other Working Capital:
-
Other Non-Cash Items:
2.98M
Net Cash Provided by Operating Activities:
213.39M
Investments in PP&E:
- 6902.00K
Net Acquisitions:
-
Purchases of Investments:
- 155181.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
1.68B
994.35M
2.68B
473.03M
-
56.18M
3.21B
277.47M
-
-
-
-
13.29M
350.84M
-
3.56B
12.55M
-
-
-
213.02M
225.57M
202.57M
30.40M
232.97M
-
458.53M
7.00K
- 2023892.00K
- 10259.0K
-
March 31, 2022 at 6:00:00 AM
2.32B
3.10B
3.56B
-
202.57M
- 1481223.0K
211.49M
-
49.40M
-
-
-
-
1.04M
1.04M
333.00K
264.16M
1.69B
1.43B
213.39M
- 6902.00K
206.49M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
PINS
2023
2024
2025
2026
2027
$23.81
$35.37
$37.97
$40.76
$43.76