Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin-3.5%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin-4.0%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
C
Years to Pay Off Debt-25.6 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$732M
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$1.7B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Price-to-Book3.13x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
C
Free Cash Flow$270M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings-$12M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Pinterest, Inc.
Pinterest, Inc. operates as a visual search and discovery platform in the United States, Canada, Europe, and internationally. The company's platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. It also provides various advertising products to help advertisers meet users; and ad auction that allows to serve ads to users at relevant moments while optimizing business outcomes for advertisers. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.
Pinterest, Inc. operates as a visual search and discovery platform in the United States, Canada, Europe, and internationally. The company's platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. It also provides various advertising products to help advertisers meet users; and ad auction that allows to serve ads to users at relevant moments while optimizing business outcomes for advertisers. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Net Income From Continuing Operation Net Minority Interest
-46,669
277,070
Reconciled Depreciation
11,785
6,008
Reconciled Cost Of Revenue
257,354
226,917
EBITDA
-29,078
307,182
EBIT
-40,863
301,174
Net Interest Income
7,334
26,642
Normalized Income
-33,060
277,070
Net Income From Continuing And Discontinued Operation
-46,669
277,070
Total Expenses
1,220,517
1,018,173
Total Operating Income As Reported
-55,198
301,174
Diluted Average Shares
562,913
677,418
Basic Average Shares
562,913
667,692
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
-46,669
277,070
Net Income Common Stockholders
-46,669
277,070
Net Income
-46,669
277,070
Net Income Including Noncontrolling Interests
-46,669
277,070
Net Income Continuous Operations
-46,669
277,070
Tax Provision
-2,490
50,637
Pretax Income
-49,159
327,707
Other Income Expense
-15,630
-109
Other Non Operating Income Expenses
-1,295
-109
Special Income Charges
-14,335
Restructuring And Mergern Acquisition
14,335
Net Non Operating Interest Income Expense
7,334
26,642
Total Other Finance Cost
-7,334
-26,642
Operating Income
-40,863
301,174
Operating Expense
963,163
791,256
Research And Development
451,010
364,905
Selling General And Administration
512,153
426,351
Selling And Marketing Expense
374,273
303,031
General And Administrative Expense
137,880
123,320
Other Gand A
137,880
123,320
Gross Profit
922,300
1,092,430
Cost Of Revenue
257,354
226,917
Total Revenue
1,179,654
1,319,347
Operating Revenue
1,179,654
1,319,347
Balance Sheet
2026
2025
2024
Ordinary Shares Number
565,497
664,546
Share Issued
565,497
664,546
Net Debt
558,644
Total Debt
1,196,635
262,018
Tangible Book Value
2,335,571
4,638,928
Invested Capital
3,875,026
4,745,238
Working Capital
1,713,536
3,090,264
Net Tangible Assets
2,335,571
4,638,928
Capital Lease Obligations
215,507
262,018
Common Stock Equity
2,893,898
4,745,238
Total Capitalization
3,875,026
4,745,238
Total Equity Gross Minority Interest
2,893,898
4,745,238
Stockholders Equity
2,893,898
4,745,238
Gains Losses Not Affecting Retained Earnings
-1,180
4,333
Other Equity Adjustments
-1,180
4,333
Retained Earnings
8,437
128,693
Additional Paid In Capital
2,886,635
4,612,205
Capital Stock
6
7
Common Stock
6
7
Total Liabilities Net Minority Interest
1,865,480
746,894
Total Non Current Liabilities Net Minority Interest
1,255,669
281,421
Other Non Current Liabilities
59,034
60,840
Long Term Debt And Capital Lease Obligation
1,196,635
220,581
Long Term Capital Lease Obligation
215,507
220,581
Long Term Debt
981,128
Current Liabilities
609,811
465,473
Current Deferred Liabilities
47,467
23,387
Current Deferred Revenue
47,467
23,387
Current Debt And Capital Lease Obligation
41,437
34,425
Current Capital Lease Obligation
41,437
34,425
Pensionand Other Post Retirement Benefit Plans Current
57,089
52,717
Payables And Accrued Expenses
609,811
319,480
Current Accrued Expenses
464,663
189,670
Payables
145,148
129,810
Accounts Payable
145,148
129,810
Total Assets
4,759,378
5,492,132
Total Non Current Assets
2,436,031
1,936,395
Other Non Current Assets
20,840
21,082
Non Current Deferred Assets
1,616,367
1,592,153
Non Current Deferred Taxes Assets
1,616,367
1,592,153
Goodwill And Other Intangible Assets
558,327
106,310
Other Intangible Assets
83,037
6,083
9,876
Goodwill
475,290
100,227
100,227
Net PPE
240,497
216,850
Accumulated Depreciation
-105,512
-89,746
Gross PPE
240,497
322,362
Leases
95,309
78,136
Construction In Progress
19,810
3,197
Other Properties
240,497
Machinery Furniture Equipment
56,844
54,037
Buildings And Improvements
150,399
85,867
Current Assets
2,323,347
3,555,737
Other Current Assets
116,446
90,735
Receivables
932,000
997,849
Accounts Receivable
932,000
997,849
Allowance For Doubtful Accounts Receivable
-7,839
Gross Accounts Receivable
901,242
Cash Cash Equivalents And Short Term Investments
1,274,901
2,467,153
Other Short Term Investments
852,417
1,497,811
Cash And Cash Equivalents
422,484
969,342
Cash Equivalents
808,644
1,024,742
Cash Financial
160,698
111,718
Cash Flow
2026
2025
2024
Free Cash Flow
269,933
380,368
Repurchase Of Capital Stock
-190,211
-586,722
Issuance Of Debt
-5,091
Capital Expenditure
-22,952
-10,845
Income Tax Paid Supplemental Data
7,668
5,278
End Cash Position
428,489
975,362
Beginning Cash Position
384,086
1,137,200
Effect Of Exchange Rate Changes
122
-54
Changes In Cash
44,281
-161,784
Financing Cash Flow
-294,489
-586,722
Cash Flow From Continuing Financing Activities
-294,489
-586,722
Net Other Financing Charges
-99,187
Net Common Stock Issuance
-190,211
-586,722
Common Stock Payments
-190,211
-586,722
Net Issuance Payments Of Debt
-5,091
Net Long Term Debt Issuance
-5,091
Long Term Debt Issuance
-5,091
Investing Cash Flow
45,885
33,725
Cash Flow From Continuing Investing Activities
45,885
33,725
Net Investment Purchase And Sale
68,837
44,570
Sale Of Investment
278,996
377,068
Purchase Of Investment
-210,159
-332,498
Net Business Purchase And Sale
0
Purchase Of Business
0
Net PPE Purchase And Sale
-22,952
-10,845
Purchase Of PPE
-22,952
-10,845
Operating Cash Flow
292,885
391,213
Cash Flow From Continuing Operating Activities
292,885
391,213
Change In Working Capital
-6,358
-162,225
Change In Other Current Liabilities
-10,405
-6,939
Change In Other Current Assets
9,129
9,075
Change In Payables And Accrued Expense
100,689
33,142
Change In Accrued Expense
25,553
-2,149
Change In Payable
75,136
35,291
Change In Account Payable
75,136
35,291
Change In Prepaid Assets
-5,771
1,468
Change In Receivables
-100,000
-198,971
Changes In Account Receivables
-100,000
-198,971
Other Non Cash Items
18,519
-2,597
Stock Based Compensation
324,517
230,667
Amortization Of Securities
-2,207
-4,456
Deferred Tax
-6,702
46,746
Deferred Income Tax
-6,702
46,746
Depreciation Amortization Depletion
11,785
6,008
Depreciation And Amortization
11,785
6,008
Net Income From Continuing Operations
-46,669
277,070
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $998M▲ $1.2B+18.2%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 79.7%▲ 78.2%-1.5pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: -4.1%▼ -3.5%+0.6pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 3.9%▼ -4.0%-7.8pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$1.2B/qtr (≈$4.7B ann.)
vs > $1.5B annualised revenue
✅ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
3.81x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$270M
vs Positive
Operating Cash Flow
$293M
Latest quarter · Buffett's cash reality check
ROIC
-0.8%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
3.1x
Net Assets: $2.9B
Asset Context — Internet Content & Information
Platform and internet businesses derive value from network effects, user data, and brand — intangibles that accounting rules don't capitalise. A low or negative Net Assets figure is expected and not a risk signal. ROIC and FCF per share are more relevant valuation anchors.
⚠️Net margin compressed 7.8pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.
Peers & Industry Comparison
Internet Content & Information — Auto-detected peers
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
1.35%
Low — management has little skin in the game
Return on Equity (ROE)
-1.6%
Weak — poor returns on equity
Return on Assets (ROA)
-1.0%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$1.3B
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-0.7% YoY
Debt is declining — management is deleveraging
Leadership Team
Benjamin Silbermann
Co-Founder & Non-Executive Chairman
Age 42
Pay: $90,000
William Ready
CEO & Director
Age 45
Pay: $1,383,083
Julia Brau Donnelly
Chief Financial Officer
Age 42
Pay: $1,248,981
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
9.84%
47,405,026
Ameriprise Financial, Inc.
9.33%
44,946,918
Elliott Investment Management L.P.
5.81%
28,000,000
UBS Group AG
4.98%
23,988,215
Victory Capital Management Inc.
4.50%
21,678,049
Vanguard Capital Management LLC
4.19%
20,201,291
Vanguard Portfolio Management LLC
4.09%
19,716,591
Goldman Sachs Group Inc
3.80%
18,327,874
Risk Analysis
Beta (Market Risk)
0.89
Low volatility — more stable than the market
Short Interest
13.0% of float
Moderate short interest
Debt-to-Equity
0.41x
Conservative balance sheet — low financial risk
Current Ratio
3.81x
Strong liquidity — Graham approved
52-Week Price Range
Low: $13.84Current: $18.39High: $35.72
Currently at 21% of 52-week range
Pinterest, Inc. (PINS) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 78.2%. Operating margin: -3.5%. Net margin: -4.0%. Market cap: $10.4B. Sector: Communication Services. Industry: Internet Content & Information. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
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