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Pinterest Inc Class A PINS

Morningstar Rating
$34.07 +0.79 (2.37%)
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Company Report

Pinterest Earnings: Network Effect Driving Revenue Growth and Margin Expansion

Pinterest’s network effect strengthened further during the third quarter, demonstrated by strong top- and bottom-line results on the back of user growth, better engagement, and higher monetization. The solid revenue growth created operating leverage and margin expansion, which management stated will continue, supporting our assumptions. In addition to the impressive results, some comments from the firm also confirm our belief that hesitancy on the part of advertisers is declining, which is good news for the overall advertising market. Regarding the firm’s platform specifically, more advertisers are connecting their marketing data with Pinterest, which in our view indicates confidence by the advertisers and their plans to spend more on the platform in the long run. We slightly increased our projections, which resulted in a $37 fair value estimate, up from $36.

Price vs Fair Value

PINS is trading at a 8% discount.
Price
$34.07
Fair Value
$13.00
Uncertainty
Very High
1-Star Price
$27.19
5-Star Price
$31.80
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Pinterest can increase user monetization with better shopability of the platform, from live pricing to visual searches.

Bears

Instagram is a formidable social network that could poach Pinterest users as it releases its Pinterest equivalent, Collections, and expands its visual search capabilities.

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News

Trading Information

Previous Close Price
$33.28
Day Range
$33.6634.85
52-Week Range
$20.6034.85
Bid/Ask
$33.85 / $34.11
Market Cap
$22.98 Bil
Volume/Avg
19,106 / 11.3 Mil

Key Statistics

Price/Earnings (Normalized)
39.65
Price/Sales
7.79
Dividend Yield
Dividend Yield (Forward)
Total Yield
3.51%

Company Profile

Pinterest is an online product and idea discovery platform that helps users gather ideas on everything from recipes to cook to destinations to travel to. Founded in 2010, the platform consists of a largely female audience, at roughly two thirds of its 450 million monthly active users. The company generates revenue by selling digital ads and is now rolling out more in-platform e-commerce features.
Sector
Communication Services
Industry
Internet Content & Information
Stock Style Box
Mid Growth
Total Number of Employees
3,966

Competitors

Valuation

Metric
PINS
META
SNAP
Price/Earnings (Normalized)
39.6525.0990.59
Price/Book Value
8.185.899.09
Price/Sales
7.796.784.86
Price/Cash Flow
40.9414.5489.74
Price/Earnings
PINS
META
SNAP

Financial Strength

Metric
PINS
META
SNAP
Quick Ratio
9.712.434.69
Current Ratio
9.992.574.83
Interest Coverage
−66.42
Quick Ratio
PINS
META
SNAP

Profitability

Metric
PINS
META
SNAP
Return on Assets (Normalized)
8.46%20.96%2.91%
Return on Equity (Normalized)
9.95%31.27%8.84%
Return on Invested Capital (Normalized)
7.43%24.95%1.87%
Return on Assets
PINS
META
SNAP

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SPOT
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SNAP
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TME
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