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Snowflake Inc Ordinary Shares - Class A SNOW

Morningstar Rating
$184.95 −45.02 (19.58%)
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Company Report

Snowflake Earnings: Revenue Outlook Disappoints; New CEO Taking Over

No-moat-rated Snowflake reported decent fiscal fourth-quarter earnings. However, the company’s outlook for fiscal 2025 was disappointing. This, combined with the surprise retirement of the company’s CEO, Frank Slootman, created a challenging quarter for Snowflake, and investors are never thrilled with a surprise CEO succession. Slootman will be replaced by Sridhar Ramaswamy, who has only been with Snowflake since May 2023. As we factor in slower growth than we were previously expecting, driven by the disappointing outlook, we are lowering our fair value estimate to $187 from $231. We thought shares were fairly valued heading into today’s earnings, and based on the drop in share price of roughly 20% afterhours, our updated fair value estimate implies shares are fairly valued once again

Price vs Fair Value

SNOW is trading at a 23% premium.
Price
$229.99
Fair Value
$663.00
Uncertainty
Very High
1-Star Price
$395.42
5-Star Price
$89.20
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Snowflake could remain the only multicloud offering of its kind for much longer than anticipated, allowing it to increase its top line more with minimal pricing pressure.

Bears

Other multicloud data providers may emerge to compete with Snowflake, or in-house data warehouses at Amazon Web Services or Microsoft Azure could potentially adopt a multicloud strategy.

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News

Trading Information

Previous Close Price
$229.97
Day Range
$180.80190.40
52-Week Range
$128.64237.72
Bid/Ask
$184.91 / $185.00
Market Cap
$60.93 Bil
Volume/Avg
23.3 Mil / 5.6 Mil

Key Statistics

Price/Earnings (Normalized)
287.45
Price/Sales
26.88
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
0.78%

Company Profile

Founded in 2012, Snowflake is a data lake, warehousing, and sharing company that came public in 2020. To date, the company has over 3,000 customers, including nearly 30% of the Fortune 500 as its customers. Snowflake’s data lake stores unstructured and semistructured data that can then be used in analytics to create insights stored in its data warehouse. Snowflake’s data sharing capability allows enterprises to easily buy and ingest data almost instantaneously compared with a traditionally months-long process. Overall, the company is known for the fact that all of its data solutions that can be hosted on various public clouds.
Sector
Technology
Industry
Software - Application
Stock Style Box
Large Growth
Total Number of Employees
5,884

Competitors

Valuation

Metric
SNOW
AMZN
GOOGL
Price/Earnings (Normalized)
287.4560.9623.15
Price/Book Value
14.608.916.00
Price/Sales
26.883.165.64
Price/Cash Flow
164.9318.8316.43
Price/Earnings
SNOW
AMZN
GOOGL

Financial Strength

Metric
SNOW
AMZN
GOOGL
Quick Ratio
2.000.701.94
Current Ratio
2.120.982.10
Interest Coverage
7.45266.75
Quick Ratio
SNOW
AMZN
GOOGL

Profitability

Metric
SNOW
AMZN
GOOGL
Return on Assets (Normalized)
3.69%9.11%24.48%
Return on Equity (Normalized)
5.20%26.76%35.00%
Return on Invested Capital (Normalized)
1.68%14.52%30.54%
Return on Assets
SNOW
AMZN
GOOGL
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