PINTEREST, INC. (PINS) Stock Analysis
PINTEREST, INC. (PINS) Stock Analysis
Analysis from 10-Q filed 2025-11-04. Data as of Q4 2025.
Overall Grade: F (Concerning)
PINTEREST, INC. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 6.3% | Below expectations |
| FCF Margin | 29.7% | Strong cash generation |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 29.7% provides financial flexibility for growth and shareholder returns.
Explore PINTEREST, INC.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: PINTEREST, INC. earns 6.3% ROIC, Top 50% in Technology
PINTEREST, INC.'s trailing-twelve-month ROIC of 6.3% ranks Top 50% in Technology companies (sector median: 5.2%), driven by NOPAT margin of 7.1% combined with asset turnover of 0.8x. Source: 10-Q filed 2025-11-04. Gross margin of 80.1% with operating margin at 7.6% reflects strong pricing power.
| Metric | PINS | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 6.3% | Warning | Above sector median of 5.2% |
| Return on Equity (ROE) | 8.7% | Adequate | Moderate equity returns |
| Gross Margin | 80.1% | Excellent | Strong pricing power |
| Operating Margin | 7.6% | Adequate | Moderate operational efficiency |
Cash Flow: PINTEREST, INC. generates $1.3B FCF at 29.7% margin, positive NaN/8 quarters
PINTEREST, INC. generated $1.3B in free cash flow (TTM), a 29.7% FCF margin, a margin that ranks Top 25% in Technology. Operating cash flow exceeds net income by 3.1x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-04.
| Metric | PINS | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 29.7% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $1.3B | Good | Positive cash generation |
| OCF/Net Income | 3.1x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: PINTEREST, INC. at 0.0x leverage
PINTEREST, INC.'s debt-to-equity ratio of 0.0x reflects conservative leverage. Source: 10-Q filed 2025-11-04.
| Metric | PINS | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: PINTEREST, INC. trades at 41.8x earnings
PINTEREST, INC. trades at a P/E of 41.8x. Free cash flow yield of 7.2% offers attractive cash returns relative to price.
| Metric | PINS | Rating | Context |
|---|---|---|---|
| P/E Ratio | 41.8x | Adequate | Premium valuation |
| EV/Sales | 3.5x | Good | Growth premium priced in |
| FCF Yield | 7.2% | Good | Attractive cash return |
Capital Allocation: PINTEREST, INC. returns 5.3% shareholder yield
PINTEREST, INC.'s total shareholder yield is 5.3% (dividends + buybacks 5.3%). Source: 10-Q filed 2025-11-04.
| Metric | PINS | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 5.3% | Good | Dividend + buyback yield combined |
| Buyback Yield | 5.3% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $927.0M | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 6.3% | Top 50% | 1.2x above |
| Free Cash Flow Margin | 29.7% | Top 25% | 3.3x above |
| Gross Margin | 80.1% | Top 25% | 1.5x above |
| Operating Margin | 7.6% | Top 50% | 1.6x above |
| Return on Equity (ROE) | 8.7% | Top 50% | 1.8x above |
| P/E Ratio | 41.8x | N/A | - |
Financial Scorecard
| Metric | PINS | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 6.3% | Warning | Top 50% of sector (median: 5.2%) |
| Free Cash Flow Margin | 29.7% | Excellent | Top 25% of sector (median: 9.1%) |
| Gross Margin | 80.1% | Excellent | Top 25% of sector (median: 51.8%) |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 41.8x | Adequate | High expectations priced in |
| Free Cash Flow Yield | 7.2% | Good | Solid cash yield |
Frequently Asked Questions
Q: What is PINTEREST, INC.'s Return on Invested Capital (ROIC)?
PINTEREST, INC. (PINS) has a trailing twelve-month Return on Invested Capital (ROIC) of 6.3%. This compares above the sector median of 5.2%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is PINTEREST, INC.'s Free Cash Flow Margin?
PINTEREST, INC. (PINS) has a free cash flow margin of 29.7%, generating $1.3 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is PINTEREST, INC. stock overvalued or undervalued?
PINTEREST, INC. (PINS) trades at a P/E ratio of 41.8x, which is above the sector median of N/A. The EV/Sales multiple is 3.5x. Free cash flow yield is 7.2%, which represents an attractive cash return to investors.
Q: What is PINTEREST, INC.'s revenue and earnings growth?
PINTEREST, INC. (PINS) grew revenue by 15.8% year-over-year. Earnings per share decreased by 77.1% compared to the prior year. Solid growth above 10% suggests healthy business momentum.
Q: Is PINTEREST, INC. buying back stock?
PINTEREST, INC. (PINS) repurchased $927.0 million of stock over the trailing twelve months. This represents a buyback yield of 5.3%.
Q: How does PINTEREST, INC. compare to competitors in Technology?
Compared to other companies in Technology, PINTEREST, INC. (PINS) shows: ROIC of 6.3% is above the sector median of 5.2% (Top 48%). FCF margin of 29.7% exceeds the sector median of 9.1% (Top 13% of sector). Gross margin at 80.1% is 28.2 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with PINTEREST, INC.?
PINTEREST, INC. (PINS) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-11-04. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.