Snowflake Inc. (SNOW) Stock Analysis

Analysis from 10-Q filed 2025-12-05. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC -29.9%. FCF margin 23.2%. D/E 1.2x. Source: 10-Q filed 2025-12-05.

Metric	Value	Context
ROIC	-29.9%	Below expectations
FCF Margin	23.2%	Strong cash generation
Debt/Equity	1.2x	Moderate leverage

ROIC -29.9% — Top 5% of sector peers. FCF margin 23.2% — Top 25%.

Explore Snowflake Inc.: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for SNOW: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: Snowflake Inc. earns -29.9% ROIC, Top 5% in Technology

ROIC TTM -29.9%, sector median 3.9%, Top 5%. DuPont: NOPAT margin -26.3% × asset turnover 0.6x. Gross margin 67.1%. Operating margin -26.1%. Source: 10-Q filed 2025-12-05.

Metric	SNOW	Rating	Context
Return on Invested Capital (ROIC)	-29.9%	Red flag	Below sector median of 3.9%
Return on Equity (ROE)	-55.7%	Red flag	Moderate equity returns
Gross Margin	67.1%	Excellent	Strong pricing power
Operating Margin	-26.1%	Warning	Moderate operational efficiency

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Cash Flow: Snowflake Inc. generates $1.2B FCF at 23.2% margin, positive NaN/8 quarters

FCF TTM $1.2B. FCF margin 23.2%, Top 25%. OCF/Net income -1.0x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-12-05.

Metric	SNOW	Rating	Context
Free Cash Flow Margin	23.2%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$1.2B	Good	Positive cash generation
OCF/Net Income	-1.0x	Warning	Potential accrual concerns
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Snowflake Inc. at 1.2x leverage

Debt/Equity 1.2x. Net cash $673.1M. Source: 10-Q filed 2025-12-05.

Metric	SNOW	Rating	Context
Debt to Equity	1.2x	Adequate	Moderate leverage
Net Cash Position	$673.1M	Excellent	Net cash positive

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Valuation: Snowflake Inc. trades at -38.8x earnings

P/E -38.8x. EV/Sales 9.0x. FCF yield 2.5%. Source: 10-Q filed 2025-12-05.

Metric	SNOW	Rating	Context
P/E Ratio	-38.8x	Red flag	Reasonable valuation
EV/Sales	9.0x	Adequate	Growth premium priced in
FCF Yield	2.5%	Adequate	Lower cash yield

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Capital Allocation: Snowflake Inc. returns 1.5% shareholder yield

Total shareholder yield 1.5% (buyback 1.5%). Capital returned $682.9M TTM. Source: 10-Q filed 2025-12-05.

Metric	SNOW	Rating	Context
Total Shareholder Yield	1.5%	Adequate	Dividend + buyback yield combined
Buyback Yield	1.5%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$682.9M	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	-29.9%	Top 5%	-7.8x below
Free Cash Flow Margin	23.2%	Top 25%	2.7x above
Gross Margin	67.1%	Top 50%	1.3x above
Operating Margin	-26.1%	Top 5%	-5.3x below
Return on Equity (ROE)	-55.7%	Top 5%	-10.8x below

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Financial Scorecard

Metric	SNOW	Rating	Sector Context
Return on Invested Capital (ROIC)	-29.9%	Red flag	Top 5% of sector (median: 3.9%)
Free Cash Flow Margin	23.2%	Excellent	Top 25% of sector (median: 8.5%)
Gross Margin	67.1%	Excellent	Top 50% of sector (median: 50.6%)
Debt to Equity Ratio	117.6%	Adequate	Elevated but manageable
Free Cash Flow Yield	2.5%	Warning	Growth-focused valuation

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Frequently Asked Questions

Q: What is Snowflake Inc.'s Return on Invested Capital (ROIC)?

Snowflake Inc. (SNOW) has a trailing twelve-month Return on Invested Capital (ROIC) of -29.9%. Sector median 3.9%. Source: 10-Q filed 2025-12-05.

Q: What is Snowflake Inc.'s Free Cash Flow Margin?

Snowflake Inc. (SNOW) has a free cash flow margin of 23.2%, generating $1.2 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-12-05.

Q: What is Snowflake Inc.'s P/E ratio and how does it compare to peers?

Snowflake Inc. (SNOW) trades at a P/E ratio of -38.8x, which is above the sector median of N/A. EV/Sales 9.0x. FCF yield 2.5%. Source: 10-Q filed 2025-12-05.

Q: How much debt does Snowflake Inc. have?

Snowflake Inc. (SNOW) has a debt-to-equity ratio of 1.2x with total debt of $2.3 billion. Net cash position $673.1 million. Source: 10-Q filed 2025-12-05.

Q: What is Snowflake Inc.'s revenue and earnings growth?

Snowflake Inc. (SNOW) grew revenue by 31.1% year-over-year. EPS +16.5% YoY. Source: 10-Q filed 2025-12-05.

Q: Is Snowflake Inc. buying back stock?

Snowflake Inc. (SNOW) repurchased $682.9 million of stock over the trailing twelve months. This represents a buyback yield of 1.5%. Source: 10-Q filed 2025-12-05.

Q: How does Snowflake Inc. compare to competitors in Technology?

Compared to other companies in Technology, Snowflake Inc. (SNOW) shows: ROIC -29.9%, sector median 3.9% (Top 5%). FCF margin 23.2%, sector median 8.5% (Top 25%). Gross margin 67.1%, 16.5pp above sector median. 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 Snowflake Inc.?

No quantitative warning flags fired for Snowflake Inc. (SNOW) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-12-05.

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Data Source: Data sourced from 10-Q filed 2025-12-05. TTM metrics as of Q2 2026.

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.