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Pinterest (NYSE:PINS) Piotroski F-Score

: 4 (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 4 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: 4   Med: 6   Max: 7
Current: 4

During the past 6 years, the highest Piotroski F-Score of Pinterest was 7. The lowest was 4. And the median was 6.


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 Dec22
Piotroski F-Score
Premium Member Only N/A 6.00 5.00 7.00 4.00

Pinterest Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
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 Premium Member Only 7.00 7.00 6.00 5.00 4.00

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 in comparison to its industry or sector. The grey bar indicates the Piotroski F-Score's extreme value range as defined by GuruFocus.


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 (Dec22) TTM:Last Year (Dec21) TTM:
Net Income was -5.281 + -43.076 + -65.181 + 17.491 = $-96 Mil.
Cash Flow from Operations was 213.389 + 120.068 + 77.455 + 58.29 = $469 Mil.
Revenue was 574.885 + 665.93 + 684.55 + 877.209 = $2,803 Mil.
Gross Profit was 428.815 + 501.034 + 501.947 + 692.181 = $2,124 Mil.
Average Total Assets from the begining of this year (Dec21)
to the end of this year (Dec22) was
(3537.238 + 3558.19 + 3694.032 + 3692.209 + 3862.73) / 5 = $3668.8798 Mil.
Total Assets at the begining of this year (Dec21) was $3,537 Mil.
Long-Term Debt & Capital Lease Obligation was $179 Mil.
Total Current Assets was $3,455 Mil.
Total Current Liabilities was $381 Mil.
Net Income was -21.674 + 69.417 + 93.996 + 174.699 = $316 Mil.

Revenue was 485.23 + 613.21 + 632.932 + 846.655 = $2,578 Mil.
Gross Profit was 351.76 + 485.391 + 506.149 + 705.407 = $2,049 Mil.
Average Total Assets from the begining of last year (Dec20)
to the end of last year (Dec21) was
(2609.459 + 2692.292 + 2885.646 + 3152.79 + 3537.238) / 5 = $2975.485 Mil.
Total Assets at the begining of last year (Dec20) was $2,609 Mil.
Long-Term Debt & Capital Lease Obligation was $209 Mil.
Total Current Assets was $3,182 Mil.
Total Current Liabilities was $260 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 -96. ==> Negative ==> Score 0.

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 469. ==> 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 (Dec21)
=-96.047/3537.238
=-0.02715311

ROA (Last Year)=Net Income/Total Assets (Dec20)
=316.438/2609.459
=0.12126575

Pinterest's return on assets of this year was -0.02715311. Pinterest's return on assets of last year was 0.12126575. ==> Last year is higher ==> Score 0.

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 -96. Pinterest's current Cash Flow from Operations (TTM) was 469. ==> 469 > -96 ==> 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: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=178.694/3668.8798
=0.04870533

Gearing (Last Year: Dec21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec20 to Dec21
=209.181/2975.485
=0.07030148

Pinterest's gearing of this year was 0.04870533. Pinterest's gearing of last year was 0.07030148. ==> This year is lower or equal to last year. ==> Score 1.

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: Dec22)=Total Current Assets/Total Current Liabilities
=3454.677/380.531
=9.07856916

Current Ratio (Last Year: Dec21)=Total Current Assets/Total Current Liabilities
=3181.563/259.806
=12.24591811

Pinterest's current ratio of this year was 9.07856916. Pinterest's current ratio of last year was 12.24591811. ==> 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 674.48. Pinterest's number of shares in issue last year was 690.286. ==> 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
=2123.977/2802.574
=0.75786652

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2048.707/2578.027
=0.7946802

Pinterest's gross margin of this year was 0.75786652. Pinterest's gross margin of last year was 0.7946802. ==> Last year's gross margin is higher ==> Score 0.

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 (Dec21)
=2802.574/3537.238
=0.79230575

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec20)
=2578.027/2609.459
=0.98795459

Pinterest's asset turnover of this year was 0.79230575. Pinterest's asset turnover of last year was 0.98795459. ==> 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
=0+1+0+1+1+0+1+0+0
=4

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

Pinterest has an F-score of 4 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 (NYSE:PINS) 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
Marc Steinberg director 600 STEAMBOAT ROAD, 3RD FLOOR, GREENWICH CT 06830
Wanjiku Juanita Walcott officer: Chief Legal Officer 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
William J Ready director, officer: Chief Executive Officer C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Andrea Acosta officer: Chief Accounting Officer C/O BIOMARIN PHARMACEUTICAL INC., 770 LINDARO ST, SAN RAFAEL CA 94901
Naveen Gavini officer: SVP, Products 505 BRANNAN ST., SAN FRANCISCO CA 94107
Salaam Coleman director 505 BRANNAN ST., SAN FRANCISCO CA 94701
Andrea M Wishom director 651 BRANNAN ST., SAN FRANCISCO CA 94107
L Michelle Wilson director PO BOX 81226, SEATTLE WA 98108-1226
Jeremy S. Levine director C/O BESSEMER VENTURE PARTNERS, 1865 PALMER AVENUE, LARCHMONT NY 10538
Fredric G Reynolds director CBS CORPORATION, 51 WEST 52ND STREET, NEW YORK NY 10019
Leslie J Kilgore director 121 ALBRIGHT WAY, LOS GATOS CA 95032
Gokul Rajaram director 301 CONGRESS AVENUE, SUITE 700, AUSTIN TX 78701
Jeffrey D Jordan director 2865 SAND HILL ROAD #101, MENLO PARK CA 94025
Evan Sharp director, officer: Co-Founder & Chief Design & Cr 505 BRANNAN STREET, SAN FRANCISCO CA 94107
Benjamin Silbermann director, 10 percent owner, officer: Chairman, President, CEO, Co-F 505 BRANNAN STREET, SAN FRANCISCO CA 94107

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