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Pinterest Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Pinterest has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Pinterest's Piotroski F-Score or its related term are showing as below:

PINS' s Piotroski F-Score Range Over the Past 10 Years
Min: 5   Med: 7   Max: 7
Current: 6

During the past 5 years, the highest Piotroski F-Score of Pinterest was 7. The lowest was 5. And the median was 7.


Pinterest Piotroski F-Score Historical Data

The historical data trend for Pinterest's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Pinterest Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
N/A N/A 6.00 5.00 7.00

Pinterest Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 7.00 7.00 7.00 6.00

Competitive Comparison

For the Internet Content & Information subindustry, Pinterest's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Pinterest Piotroski F-Score Distribution

For the Interactive Media industry and Communication Services sector, Pinterest's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Pinterest's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 93.996 + 174.699 + -5.281 + -43.076 = $220 Mil.
Cash Flow from Operations was 165.742 + 211.772 + 213.389 + 120.068 = $711 Mil.
Revenue was 632.932 + 846.655 + 574.885 + 665.93 = $2,720 Mil.
Gross Profit was 506.149 + 705.407 + 428.815 + 501.034 = $2,141 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(2885.646 + 3152.79 + 3537.238 + 3558.19 + 3694.032) / 5 = $3365.5792 Mil.
Total Assets at the begining of this year (Jun21) was $2,886 Mil.
Long-Term Debt & Capital Lease Obligation was $193 Mil.
Total Current Assets was $3,246 Mil.
Total Current Liabilities was $351 Mil.
Net Income was -94.22 + 207.841 + -21.674 + 69.417 = $161 Mil.

Revenue was 442.616 + 705.617 + 485.23 + 613.21 = $2,247 Mil.
Gross Profit was 329.772 + 576.594 + 351.76 + 485.391 = $1,744 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(2249.624 + 2301.038 + 2609.459 + 2692.292 + 2885.646) / 5 = $2547.6118 Mil.
Total Assets at the begining of last year (Jun20) was $2,250 Mil.
Long-Term Debt & Capital Lease Obligation was $122 Mil.
Total Current Assets was $2,664 Mil.
Total Current Liabilities was $237 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Pinterest's current Net Income (TTM) was 220. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Pinterest's current Cash Flow from Operations (TTM) was 711. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=220.338/2885.646
=0.07635656

ROA (Last Year)=Net Income/Total Assets (Jun20)
=161.364/2249.624
=0.07172932

Pinterest's return on assets of this year was 0.07635656. Pinterest's return on assets of last year was 0.07172932. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Pinterest's current Net Income (TTM) was 220. Pinterest's current Cash Flow from Operations (TTM) was 711. ==> 711 > 220 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=192.543/3365.5792
=0.05720947

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=121.632/2547.6118
=0.04774354

Pinterest's gearing of this year was 0.05720947. Pinterest's gearing of last year was 0.04774354. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=3246.07/350.855
=9.25188468

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=2663.711/237.449
=11.21803419

Pinterest's current ratio of this year was 9.25188468. Pinterest's current ratio of last year was 11.21803419. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Pinterest's number of shares in issue this year was 662.242. Pinterest's number of shares in issue last year was 692.364. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2141.405/2720.402
=0.78716491

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1743.517/2246.673
=0.77604395

Pinterest's gross margin of this year was 0.78716491. Pinterest's gross margin of last year was 0.77604395. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=2720.402/2885.646
=0.94273587

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=2246.673/2249.624
=0.99868823

Pinterest's asset turnover of this year was 0.94273587. Pinterest's asset turnover of last year was 0.99868823. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+0+1+1+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Pinterest has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Pinterest  (NYSE:PINS) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Pinterest Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Pinterest's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Pinterest Business Description

Pinterest logo
Traded in Other Exchanges
Address
505 Brannan Street, San Francisco, CA, USA, 94107
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 more than 365 million monthly active users. The company generates revenue by selling digital ads and is now rolling out more in-platform e-commerce features.
Executives
Acosta Andrea officer: Chief Accounting Officer C/O BIOMARIN PHARMACEUTICAL INC. 770 LINDARO ST SAN RAFAEL CA 94901
Gavini Naveen officer: SVP, Products 505 BRANNAN ST. SAN FRANCISCO CA 94107
Coleman Salaam director 505 BRANNAN ST. SAN FRANCISCO CA 94701
Wishom Andrea M director 651 BRANNAN ST. SAN FRANCISCO CA 94107
Reynolds Fredric G director CBS CORPORATION 51 WEST 52ND STREET NEW YORK NY 10019
Kilgore Leslie J director 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Wilson L Michelle director PO BOX 81226 SEATTLE WA 98108-1226
Levine Jeremy S. director C/O BESSEMER VENTURE PARTNERS 1865 PALMER AVENUE LARCHMONT NY 10538
Rajaram Gokul director 301 CONGRESS AVENUE SUITE 700 AUSTIN TX 78701
Jordan Jeffrey D director 2865 SAND HILL ROAD #101 MENLO PARK CA 94025
Silbermann Benjamin director, 10 percent owner, officer: Chairman, President, CEO, Co-F 505 BRANNAN STREET SAN FRANCISCO CA 94107
Sharp Evan director, officer: Co-Founder & Chief Design & Cr 505 BRANNAN STREET SAN FRANCISCO CA 94107
Yang Tseli Lily officer: Chief Accounting Officer C/O MEDIVATION, INC. 525 MARKET ST., 36TH FLOOR SAN FRANCISCO CA 94105
Flores Christine officer: General Counsel 505 BRANNAN STREET SAN FRANCISCO CA 94107
Brougher Francoise officer: Chief Operating Officer 1455 MARKET STREET SUITE 600 SAN FRANCISCO CA 94103

Pinterest Headlines

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