As we approach September 19, 2023, Pinterest is projected to experience a remarkable mid-high teen growth in revenue compound annual growth rate (CAGR) over the next 3-5 years. Moreover, the company anticipates achieving low 30s adjusted EBITDA margins within the same time frame. The Chief Financial Officer of Pinterest has confidently declared that the adjusted EBITDA margin in 2023 will witness a year-over-year increase of 200 basis points.
It is important to note that the adjusted EBITDA margin is determined by dividing the adjusted EBITDA by the revenue. Pinterest firmly believes that this metric, along with other non-GAAP measures, offers valuable insights into their operational performance and future prospects. These indicators provide a comprehensive understanding of the company’s financial health and serve as a reliable reference for assessing their potential growth in the coming years.
Pinterest, Inc.
PINS
Buy
Updated on: 29/11/2023
Financial Health
Healthy
Debt to equity ratio: Neutral
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
PINS Stock Performance and Future Outlook: Mixed Results and Challenges for Pinterest Inc.
PINS stock had a mixed performance on September 19, 2023. The stock opened at $25.14, slightly lower than the previous close of $25.40. Throughout the trading day, the stock’s price fluctuated between a low of $24.38 and a high of $26.87. The total volume of shares traded was 18,956,778, which is significantly higher than the average volume of 10,243,773 over the past three months.
Pinterest Inc. has a market capitalization of $17.2 billion. The company’s earnings growth has been volatile, with a negative growth rate of -129.19% last year but a positive growth rate of +28.25% this year. However, analysts have a pessimistic outlook for the company’s future, as they forecast a negative earnings growth rate of -139.00% over the next five years.
On the revenue front, Pinterest Inc. experienced a growth rate of +8.71% last year. However, the company’s profitability has been a concern, with an annual profit of -$96.0 million and a net profit margin of -3.43%.
In terms of valuation, Pinterest Inc. does not have a P/E ratio available. The price/sales ratio is 5.77, indicating that investors are willing to pay 5.77 times the company’s annual revenue for its stock. The price/book ratio is 5.35, which suggests that the stock is trading at a premium compared to its book value.
When comparing PINS stock to its industry peers, Tradeweb Markets Inc. (TW) experienced a slight decrease of -0.18%, Snap Inc. (SNAP) saw a small increase of +0.39%, Match Group Inc. (MTCH) had a decline of -0.82%, and Sea Ltd. (SE) had a modest increase of +0.52%.
Pinterest Inc. is categorized under the Technology Services sector and operates in the Internet Software/Services industry. The company is headquartered in San Francisco, California.
Investors and analysts will be closely watching Pinterest Inc. as the next reporting date approaches on November 2, 2023. The company is expected to report earnings per share of $0.18 for the current quarter. With its recent stock performance and financial indicators, Pinterest Inc. faces challenges in terms of profitability and future growth.
Pinterest Incs Stock Price Analysis: Positive Forecasts and Hold Rating by Analysts
On September 19, 2023, Pinterest Inc’s stock, ticker symbol PINS, had a last price of $26.60. The median target price is $31.85, with a high estimate of $45.00 and a low estimate of $24.00. This indicates a potential increase of 19.76% from the last price.
The current consensus among 31 polled investment analysts is to hold the stock. This rating has remained steady since September.
Pinterest Inc reported earnings per share of $0.18 for the current quarter, with sales amounting to $737.5 million. The company is scheduled to release its next earnings report on November 02.
Based on the provided information, it appears that Pinterest Inc’s stock has received positive price forecasts from analysts, suggesting potential growth in the future. However, the current consensus among analysts is to hold the stock. Investors may want to closely monitor the company’s upcoming earnings report to assess its financial performance and make informed decisions.
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