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. Negative P/B indicates book equity has been reduced by buybacks — common in highly profitable capital-return businesses.
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.
Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and snaps. It also provides Snapchat+, Lens+, and Snapchat Platinum, a subscription service that provides subscribers access to exclusive, experimental, and pre-release features; Spectacles, an augmented reality (AR) glasses; and advertising products, including AR ads and Snap ads comprises a single image or video ads, collection ads, dynamic ads, story ads, commercials, sponsored snaps, and promoted places. In addition, the company offers campaign management and delivery, an advertising platform that provides automated, sophisticated, and scalable ad buying and campaign management; and measuring advertising effectiveness solutions. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
Gross Profit %
55.0%▲
53.9%
54.1%
60.6%
Operating Margin %
-9.0%▲
-14.7%
-30.4%
-30.3%
Net Income %
-7.8%▲
-13.0%
-28.7%
-31.1%
Diluted EPS
-0.27▲
-0.42
-0.82
-0.89
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$7.7B
$7.9B
$8.0B
$8.0B
N/A
Total Debt
$4.1B↓
$4.2B
$4.3B
$4.2B
N/A
Working Capital
$3.3B▼
$3.7B
$3.8B
$4.0B
N/A
Years to Pay Debt
-9.00
-6.08
-3.29
-2.92
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$437M▲
$219M
$35M
$55M
N/A
Owner Earnings
-$78M
-$345M
-$942M
-$1.1B
N/A
CapEx % of Net Income
N/A
N/A
N/A
N/A
N/A
Income Statement
2025
2024
2023
2022
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
-165,505
-492,600
-1,103,958
-1,177,065
Net Income From Continuing Operation Net Minority Interest
-460,489
-697,856
-1,322,485
-1,429,653
Reconciled Depreciation
163,633
158,074
168,441
202,173
Reconciled Cost Of Revenue
2,669,575
2,474,237
2,114,117
1,815,342
EBITDA
-165,505
-492,600
-1,103,958
-1,177,065
EBIT
-329,138
-650,674
-1,272,399
-1,379,238
Net Interest Income
12,161
131,914
146,370
37,138
Interest Expense
121,998
21,552
22,024
21,459
Interest Income
134,159
153,466
168,394
58,597
Normalized Income
-460,489
-697,856
-1,322,485
-1,429,653
Net Income From Continuing And Discontinued Operation
-460,489
-697,856
-1,322,485
-1,429,653
Total Expenses
6,463,614
6,148,692
6,004,494
5,997,153
Total Operating Income As Reported
-532,167
-787,294
-1,398,379
-1,395,306
Diluted Average Shares
1,694,598
1,659,147
1,612,504
1,608,304
Basic Average Shares
1,694,598
1,659,147
1,612,504
1,608,304
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
-460,489
-697,856
-1,322,485
-1,429,653
Net Income Common Stockholders
-460,489
-697,856
-1,322,485
-1,429,653
Net Income
-460,489
-697,856
-1,322,485
-1,429,653
Net Income Including Noncontrolling Interests
-460,489
-697,856
-1,322,485
-1,429,653
Net Income Continuous Operations
-460,489
-697,856
-1,322,485
-1,429,653
Tax Provision
9,353
25,630
28,062
28,956
Pretax Income
-451,136
-672,226
-1,294,423
-1,400,697
Other Income Expense
68,870
-16,846
-42,414
-42,529
Other Non Operating Income Expenses
68,870
-16,846
-42,414
-42,529
Net Non Operating Interest Income Expense
12,161
131,914
146,370
37,138
Interest Expense Non Operating
121,998
21,552
22,024
21,459
Interest Income Non Operating
134,159
153,466
168,394
58,597
Operating Income
-532,167
-787,294
-1,398,379
-1,395,306
Operating Expense
3,794,039
3,674,455
3,890,377
4,181,811
Research And Development
1,793,601
1,691,683
1,910,862
2,109,800
Selling General And Administration
2,000,438
1,982,772
1,979,515
2,072,011
Selling And Marketing Expense
1,021,305
1,063,675
1,122,092
1,118,746
General And Administrative Expense
979,133
919,097
857,423
953,265
Other Gand A
979,133
919,097
857,423
953,265
Gross Profit
3,261,872
2,887,161
2,491,998
2,786,505
Cost Of Revenue
2,669,575
2,474,237
2,114,117
1,815,342
Total Revenue
5,931,447
5,361,398
4,606,115
4,601,847
Operating Revenue
5,931,447
5,361,398
4,606,115
4,601,847
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
44,670
47,222
49,200
51,312
Ordinary Shares Number
1,711,554
1,690,646
1,645,497
1,574,086
Share Issued
1,756,224
1,737,868
1,694,697
1,625,398
Net Debt
2,506,394
2,597,395
1,969,000
2,319,399
Total Debt
4,143,131
4,243,896
4,345,000
4,175,276
Tangible Book Value
494,113
674,613
575,982
730,098
Invested Capital
5,818,324
6,094,690
6,163,512
6,323,218
Working Capital
3,298,006
3,663,209
3,841,725
4,041,048
Net Tangible Assets
494,113
674,613
575,982
730,098
Capital Lease Obligations
606,302
599,967
595,600
432,756
Common Stock Equity
2,281,495
2,450,761
2,414,112
2,580,698
Total Capitalization
5,771,355
6,058,478
6,163,512
6,323,218
Total Equity Gross Minority Interest
2,281,495
2,450,761
2,414,112
2,580,698
Stockholders Equity
2,281,495
2,450,761
2,414,112
2,580,698
Gains Losses Not Affecting Retained Earnings
26,692
2,694
7,131
-13,974
Other Equity Adjustments
26,692
2,694
7,131
-13,974
Treasury Stock
435,722
460,620
479,903
500,514
Retained Earnings
-13,946,816
-12,735,461
-11,726,536
-10,214,657
Additional Paid In Capital
16,637,324
15,644,132
14,613,404
13,309,828
Capital Stock
17
16
16
15
Common Stock
17
16
16
15
Total Liabilities Net Minority Interest
5,396,307
5,485,587
5,553,646
5,448,840
Total Non Current Liabilities Net Minority Interest
4,109,439
4,242,039
4,419,528
4,233,241
Other Non Current Liabilities
61,756
59,240
123,849
104,450
Long Term Debt And Capital Lease Obligation
4,047,683
4,182,799
4,295,679
4,128,791
Long Term Capital Lease Obligation
557,823
575,082
546,279
386,271
Long Term Debt
3,489,860
3,607,717
3,749,400
3,742,520
Current Liabilities
1,286,868
1,243,548
1,134,118
1,215,599
Other Current Liabilities
220,229
140,630
136,381
484,855
Current Deferred Liabilities
148,999
189,203
101,065
50,782
Current Deferred Revenue
145,210
112,769
93,706
50,782
Current Debt And Capital Lease Obligation
95,448
61,097
49,321
46,485
Current Capital Lease Obligation
48,479
24,885
49,321
46,485
Current Debt
46,969
36,212
Other Current Borrowings
46,969
36,212
Pensionand Other Post Retirement Benefit Plans Current
77,812
85,416
95,600
206,441
Payables And Accrued Expenses
744,380
767,202
751,751
427,036
Current Accrued Expenses
524,587
594,005
472,790
245,262
Payables
219,793
173,197
278,961
181,774
Accounts Payable
219,793
173,197
278,961
181,774
Total Assets
7,677,802
7,936,348
7,967,758
8,029,538
Total Non Current Assets
3,092,928
3,029,591
2,991,915
2,772,891
Other Non Current Assets
221,255
233,914
226,597
279,562
Goodwill And Other Intangible Assets
1,787,382
1,776,148
1,838,130
1,850,600
Other Intangible Assets
66,613
86,363
146,303
204,480
Goodwill
1,720,769
1,689,785
1,691,827
1,646,120
Net PPE
1,084,291
1,019,529
927,188
642,729
Accumulated Depreciation
-370,402
-328,923
-264,384
-218,593
Gross PPE
1,454,693
1,348,452
1,191,572
861,322
Leases
560,551
450,826
332,721
225,647
Construction In Progress
41,301
63,284
90,038
80,267
Other Properties
506,216
530,441
516,862
370,952
Machinery Furniture Equipment
325,139
282,415
230,465
162,970
Buildings And Improvements
21,486
21,486
21,486
21,486
Current Assets
4,584,874
4,906,757
4,975,843
5,256,647
Other Current Assets
272,065
182,006
153,587
134,431
Prepaid Assets
134,431
92,244
Receivables
1,372,237
1,348,472
1,278,176
1,183,092
Accounts Receivable
1,372,237
1,348,472
1,278,176
1,183,092
Cash Cash Equivalents And Short Term Investments
2,940,572
3,376,279
3,544,080
3,939,124
Other Short Term Investments
1,910,137
2,329,745
1,763,680
2,516,003
Cash And Cash Equivalents
1,030,435
1,046,534
1,780,400
1,423,121
Cash Equivalents
630,862
698,284
1,195,410
Cash Financial
399,573
348,251
584,990
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
437,189
218,654
34,794
55,308
Repurchase Of Capital Stock
-750,866
-311,069
-189,394
-1,001,052
Repayment Of Debt
-2,030,790
-859,042
0
0
Issuance Of Debt
2,014,193
740,350
0
1,483,500
Capital Expenditure
-218,981
-194,826
-211,727
-129,306
Interest Paid Supplemental Data
65,060
10,284
10,244
8,873
Income Tax Paid Supplemental Data
26,716
24,686
30,924
12,087
End Cash Position
1,031,397
1,050,234
1,782,462
1,423,776
Beginning Cash Position
1,050,234
1,782,462
1,423,776
1,994,723
Changes In Cash
-18,837
-732,228
358,686
-570,947
Financing Cash Flow
-848,125
-428,624
-458,789
306,714
Cash Flow From Continuing Financing Activities
-848,125
-428,624
-458,789
306,714
Net Other Financing Charges
-81,036
-11,661
-270,433
-180,006
Proceeds From Stock Option Exercised
374
12,798
1,038
4,272
Net Common Stock Issuance
-750,866
-311,069
-189,394
-1,001,052
Common Stock Payments
-750,866
-311,069
-189,394
-1,001,052
Net Issuance Payments Of Debt
-16,597
-118,692
0
1,483,500
Net Long Term Debt Issuance
-16,597
-118,692
0
1,483,500
Long Term Debt Payments
-2,030,790
-859,042
0
0
Long Term Debt Issuance
2,014,193
740,350
0
1,483,500
Investing Cash Flow
173,118
-717,084
570,954
-1,062,275
Cash Flow From Continuing Investing Activities
173,118
-717,084
570,954
-1,062,275
Net Other Investing Changes
-3,581
-100
-2,779
-18,125
Net Investment Purchase And Sale
431,179
-522,158
835,714
-847,777
Sale Of Investment
1,729,475
1,767,510
2,891,757
2,664,207
Purchase Of Investment
-1,298,296
-2,289,668
-2,056,043
-3,511,984
Net Business Purchase And Sale
-35,499
0
-50,254
-67,067
Purchase Of Business
-35,499
0
-50,254
-67,067
Net PPE Purchase And Sale
-218,981
-194,826
-211,727
-129,306
Purchase Of PPE
-218,981
-194,826
-211,727
-129,306
Operating Cash Flow
656,170
413,480
246,521
184,614
Cash Flow From Continuing Operating Activities
656,170
413,480
246,521
184,614
Change In Working Capital
-17,004
-91,456
63,131
-34,992
Change In Other Current Liabilities
-42,084
-54,745
-58,852
-63,430
Change In Other Current Assets
64,919
44,175
72,912
70,937
Change In Payables And Accrued Expense
58,732
49,663
157,118
118,198
Change In Accrued Expense
12,814
150,391
62,130
71,706
Change In Payable
45,918
-100,728
94,988
46,492
Change In Account Payable
45,918
-100,728
94,988
46,492
Change In Prepaid Assets
-66,744
-36,544
-9,920
-40,917
Change In Receivables
-31,827
-94,005
-98,127
-119,780
Changes In Account Receivables
-31,827
-94,005
-98,127
-119,780
Other Non Cash Items
32,999
-11,437
-19,597
22,461
Stock Based Compensation
1,016,825
1,041,023
1,324,004
1,387,787
Depreciation Amortization Depletion
163,633
158,074
168,441
202,173
Depreciation And Amortization
163,633
158,074
168,441
202,173
Operating Gains Losses
-79,794
15,132
33,027
36,838
Gain Loss On Investment Securities
16,940
8,460
33,027
36,838
Net Income From Continuing Operations
-460,489
-697,856
-1,322,485
-1,429,653
These metrics estimate what Snap Inc. is worth based on its fundamentals — independent of what the market currently prices it at.
Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles.
EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.
Graham's Fair Value
N/A (negative EPS)
Margin of Safety
—
Market Cap ÷ Company Value
2.53
P/B Ratio
3.87
Warren's Owner Earnings
-$78M
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/6 — Speculative Investor
✅Adequate Size
$5.9B
vs > $1.5B revenue
✅Strong Financial Condition
3.56x
vs Current Ratio > 2.0x
❌Earnings Stability
4 loss years (4 yrs data)
vs No negative EPS years
❌Dividend Record
No dividend
vs Uninterrupted dividends
✅Moderate P/E Ratio
9.0x
vs P/E ≤ 15.0x
❌Moderate Price-to-Book
3.87x P/B (P/E×P/B: 34.8)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it may or may not apply to modern businesses.
✅ Adequate Size — $5.9Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
✅ Strong Financial Condition — 3.56xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
❌ Earnings Stability — 4 loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
✅ Moderate P/E Ratio — 9.0xvs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
Net Current Asset Value
$-0.57
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
$-4.12
Per share, no-growth floor. Compare to current price.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
N/A
N/A
N/A
N/A
N/A
Repurchase of Capital Stock
-$751M
-$311M
-$189M
-$1.0B
N/A
Free Cash Flow
$437M▲
$219M▲
$35M▼
$55M•
N/A•
Warren's Owner Earnings
-$78M
-$345M
-$942M
-$1.1B
N/A
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
23.00%
High — management has strong skin in the game
Return on Equity (ROE)
-20.2%
Weak — poor returns on equity
Return on Assets (ROA)
-6.0%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$751M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-2.4% YoY
Debt is declining — management is deleveraging
Leadership Team
Evan Spiegel
Co-Founder, CEO & Director
Age 34
Pay: $4,250,450
Robert Murphy
Co-Founder, CTO & Director
Age 36
Pay: $1,065,214
Derek Andersen
Chief Financial Officer
Age 46
Pay: $1,016,695
Top Institutional Holders
Institution
% Owned
Shares
Vanguard Group Inc
7.06%
101,251,557
FMR, LLC
6.78%
97,347,095
Capital World Investors
6.16%
88,452,006
Blackrock Inc.
3.05%
43,812,693
Capital International Investors
2.64%
37,871,060
Citadel Advisors Llc
1.46%
20,968,545
Two Sigma Investments, LP
1.20%
17,277,398
Millennium Management Llc
1.07%
15,346,103
Risk Analysis
Beta (Market Risk)
1.05
Moderate volatility — moves slightly more than market
Short Interest
10.5% of float
Moderate short interest
Debt-to-Equity
1.82x
Moderate leverage
Current Ratio
3.56x
Strong liquidity — Graham approved
52-Week Price Range
Low: $3.81Current: $6.15High: $10.41
Currently at 35% of 52-week range
Snap Inc. (SNAP) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 55.0%. Operating margin: -9.0%. Net margin: -7.8%. 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
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.