Snowflake Inc.SNOW
NYSE • Technology
$151.98
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
+30.1% YoY
Gross Margin
66.8%
Health Score
5/10
D/E Ratio
1.42
Confidence
MEDIUM
Business Snapshot
Snowflake operates a cloud-native data platform that enables customers to store, manage, and analyse data across multiple cloud providers, with its core revenue generated from compute and storage consumption. It competes in the highly competitive cloud data warehouse and analytics market, where it holds a strong position due to its multi-cloud flexibility and ease of use. The company generates $4.68 billion in trailing twelve-month (TTM) revenue, placing it at a significant scale for a software company still in a growth phase. A defining characteristic is its consumption-based pricing model, which aligns revenue with customer usage but also leads to volatility in quarterly results and continued net losses despite rapid top-line growth.
Financial Health
Gross margin stands at 66.8%, slightly down from 67.8% a year ago, while net margin is deeply negative at -28.4%, reflecting heavy spending on sales, R&D, and infrastructure. The debt/equity ratio of 1.42x indicates elevated leverage relative to equity, and the current ratio of 1.3x suggests adequate short-term liquidity but not a fortress balance sheet...
Risk Assessment
- VALUATION — Price/Sales of 11.22x reflects a steep premium for a company still generating net losses, especially in a rising-rate environment.
- DEBT / LIQUIDITY — Debt/equity of 1.42x, while below 1.5x, is elevated for a software company and combined with negative equity adds financial fragility.
- 52-WEEK POSITION — Current price of $151.98 sits 46% below the 52-week high of $280.67 and below the midpoint of the range, signaling persistent weakness.
- TECHNICALS — RSI of 53.4 is neutral, but price trades below both the 50-day ($155.2) and 200-day ($204.77) moving averages, and the moving average crossover is a death cross — a clearly bearish structure.
- EARNINGS QUALITY — Despite 4/4 earnings beats, net losses persist, meaning operational progress has not yet translated to GAAP profitability....