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 Margin4.5%
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 Margin3.3%
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
D
Years to Pay Off Debt73.1 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-$347M
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$3.0B
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
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book3.27x
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$164M
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.
CapEx % of Net Income81.5%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$147M
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 Snap Inc.
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.
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.
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.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
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.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
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.
Mr. Market is currently offering Snap Inc. at $4.96.
The business passes only 3 of 6 of Graham's defensive criteria — well below his required standard.
At $4.96, the stock trades at a 391% premium to its Graham Number of $1.01. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q3 2026
Q4 2025
Gross Profit %
62.3%▲
59.1%
Operating Margin %
4.5%▲
2.9%
Net Income %
3.3%▲
2.6%
Diluted EPS
0.03→
0.03
Balance Sheet Highlights
Metric
Q3 2026
Q4 2025
Total Assets
$7.6B
$7.7B
Total Debt
$4.1B▼
$4.1B
Working Capital
$3.0B▼
$3.3B
Years to Pay Debt
73.06
91.64
Cash Flow Highlights
Metric
Q3 2026
Q4 2025
Free Cash Flow
$164M▼
$206M
Owner Earnings
$147M
$153M
CapEx % of Net Income
81.5%
141.6%
Income Statement
2026
2025
Tax Rate For Calcs
0
0
Normalized EBITDA
148,164
117,839
Net Income From Continuing Operation Net Minority Interest
56,498
45,209
Reconciled Depreciation
44,625
43,381
Reconciled Cost Of Revenue
616,997
702,443
EBITDA
148,164
117,839
EBIT
103,539
74,458
Net Interest Income
-10,431
-4,811
Interest Expense
37,290
36,498
Interest Income
26,859
31,687
Normalized Income
56,498
45,209
Net Income From Continuing And Discontinued Operation
56,498
45,209
Total Expenses
1,645,755
1,666,744
Total Operating Income As Reported
76,716
49,717
Diluted Average Shares
1,700,192
1,720,347
Basic Average Shares
1,693,497
1,710,465
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
56,498
45,209
Net Income Common Stockholders
56,498
45,209
Net Income
56,498
45,209
Net Income Including Noncontrolling Interests
56,498
45,209
Net Income Continuous Operations
56,498
45,209
Tax Provision
9,751
-7,249
Pretax Income
66,249
37,960
Other Income Expense
-36
-6,946
Other Non Operating Income Expenses
-36
-6,946
Net Non Operating Interest Income Expense
-10,431
-4,811
Interest Expense Non Operating
37,290
36,498
Interest Income Non Operating
26,859
31,687
Operating Income
76,716
49,717
Operating Expense
996,342
964,301
Depreciation Amortization Depletion Income Statement
12,209
Depreciation And Amortization In Income Statement
12,209
Research And Development
477,678
472,693
Selling General And Administration
506,455
532,956
Selling And Marketing Expense
290,098
264,698
General And Administrative Expense
216,357
268,258
Other Gand A
216,357
268,258
Gross Profit
1,073,058
1,014,018
Cost Of Revenue
649,413
702,443
Total Revenue
1,722,471
1,716,461
Operating Revenue
1,372,788
2,229,911
Balance Sheet
2026
2025
Treasury Shares Number
44,670
Ordinary Shares Number
1,717,511
1,711,554
Share Issued
1,717,511
1,756,224
Net Debt
2,467,203
2,506,394
Total Debt
4,127,964
4,143,131
Tangible Book Value
364,734
494,113
Invested Capital
5,716,661
5,818,324
Working Capital
3,033,502
3,298,006
Net Tangible Assets
364,734
494,113
Capital Lease Obligations
641,546
606,302
Common Stock Equity
2,230,243
2,281,495
Total Capitalization
5,610,459
5,771,355
Total Equity Gross Minority Interest
2,230,243
2,281,495
Stockholders Equity
2,230,243
2,281,495
Gains Losses Not Affecting Retained Earnings
609
26,692
Other Equity Adjustments
609
26,692
Treasury Stock
416,774
435,722
Retained Earnings
-14,744,193
-13,946,816
Additional Paid In Capital
17,390,584
16,637,324
Capital Stock
17
17
Common Stock
17
17
Total Liabilities Net Minority Interest
5,336,130
5,396,307
Total Non Current Liabilities Net Minority Interest
4,048,591
4,109,439
Other Non Current Liabilities
81,257
61,756
Long Term Debt And Capital Lease Obligation
3,967,334
4,047,683
Long Term Capital Lease Obligation
587,118
557,823
Long Term Debt
3,380,216
3,489,860
Current Liabilities
1,287,539
1,286,868
Other Current Liabilities
220,229
Current Deferred Liabilities
148,999
Current Deferred Revenue
145,210
Current Debt And Capital Lease Obligation
160,630
95,448
Current Capital Lease Obligation
54,428
48,479
Current Debt
106,202
46,969
Other Current Borrowings
106,202
46,969
Pensionand Other Post Retirement Benefit Plans Current
77,812
Payables And Accrued Expenses
1,126,909
744,380
Current Accrued Expenses
1,050,879
524,587
Payables
76,030
219,793
Accounts Payable
76,030
219,793
Total Assets
7,566,373
7,677,802
Total Non Current Assets
3,245,332
3,092,928
Other Non Current Assets
252,330
221,255
Goodwill And Other Intangible Assets
1,865,509
1,787,382
Other Intangible Assets
86,423
66,613
Goodwill
1,779,086
1,720,769
Net PPE
1,127,493
1,084,291
Accumulated Depreciation
-370,402
Gross PPE
1,127,493
1,454,693
Leases
560,551
Construction In Progress
41,301
Other Properties
1,127,493
506,216
Machinery Furniture Equipment
325,139
Buildings And Improvements
21,486
Current Assets
4,321,041
4,584,874
Other Current Assets
306,648
272,065
Receivables
1,243,746
1,372,237
Accounts Receivable
1,243,746
1,372,237
Cash Cash Equivalents And Short Term Investments
2,770,647
2,940,572
Other Short Term Investments
1,751,432
1,910,137
Cash And Cash Equivalents
1,019,215
1,030,435
Cash Equivalents
630,862
Cash Financial
399,573
Cash Flow
2026
2025
Free Cash Flow
164,453
205,556
Repurchase Of Capital Stock
0
-250,293
Repayment Of Debt
-47,013
0
Issuance Of Debt
0
0
Capital Expenditure
-46,031
-64,022
End Cash Position
1,020,758
1,031,397
Beginning Cash Position
960,491
955,499
Changes In Cash
60,267
75,898
Financing Cash Flow
-48,263
-256,518
Cash Flow From Continuing Financing Activities
-48,263
-256,518
Net Other Financing Charges
-1,250
-6,599
Proceeds From Stock Option Exercised
374
Net Common Stock Issuance
0
-250,293
Common Stock Payments
0
-250,293
Net Issuance Payments Of Debt
-47,013
0
Net Long Term Debt Issuance
-47,013
0
Long Term Debt Payments
-47,013
0
Long Term Debt Issuance
0
0
Investing Cash Flow
-101,954
62,838
Cash Flow From Continuing Investing Activities
-101,954
62,838
Net Other Investing Changes
Net Investment Purchase And Sale
-55,923
130,441
Sale Of Investment
224,928
393,420
Purchase Of Investment
-280,851
-262,979
Net Business Purchase And Sale
0
0
Purchase Of Business
0
0
Net PPE Purchase And Sale
-46,031
-64,022
Purchase Of PPE
-46,031
-64,022
Operating Cash Flow
210,484
269,578
Cash Flow From Continuing Operating Activities
210,484
269,578
Change In Working Capital
-150,806
-88,095
Change In Other Current Liabilities
-12,925
-20,224
Change In Other Current Assets
13,499
15,036
Change In Payables And Accrued Expense
-109,940
71,497
Change In Accrued Expense
-6,252
3,761
Change In Payable
-103,688
67,736
Change In Account Payable
-103,688
67,736
Change In Prepaid Assets
-27,092
-20,545
Change In Receivables
-14,348
-133,859
Changes In Account Receivables
-14,348
-133,859
Other Non Cash Items
5,818
10,679
Stock Based Compensation
254,789
257,238
Depreciation Amortization Depletion
44,625
43,381
Depreciation And Amortization
44,625
43,381
Operating Gains Losses
-440
1,166
Gain Loss On Investment Securities
-440
1,166
Net Income From Continuing Operations
56,498
45,209
📊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: $1.5B▲ $1.7B+14.3%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 55.3%▲ 62.3%+7.0pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 5.1%▲ 4.5%-0.6pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: -6.9%▲ 3.3%+10.2pp
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.
$1.7B/qtr (≈$6.9B ann.)
vs > $1.5B annualised revenue
✅ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
3.36x 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.
$164M
vs Positive
Operating Cash Flow
$210M
Latest quarter · Buffett's cash reality check
ROIC
1.0%
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
3.3x
Net Assets: $2.2B
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.
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
22.80%
High — management has strong skin in the game
Return on Equity (ROE)
2.5%
Weak — poor returns on equity
Return on Assets (ROA)
0.7%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$751M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-2.3% YoY
Debt is declining — management is deleveraging
Leadership Team
Evan Spiegel
Co-Founder, CEO & Director
Age 34
Pay: $4,250,450
7.523% of net income
Robert Murphy
Co-Founder, CTO & Director
Age 36
Pay: $1,065,214
1.885% of net income
Doug Hott
Chief Financial Officer
Age 52
Top Institutional Holders
Institution
% Owned
Shares
FMR, LLC
4.63%
66,514,779
Vanguard Capital Management LLC
3.26%
46,916,039
Vanguard Portfolio Management LLC
3.23%
46,432,846
Blackrock Inc.
3.06%
44,007,270
Irenic Capital Management LP
2.09%
30,000,000
AQR Capital Management, LLC
2.04%
29,294,755
Two Sigma Investments, LP
1.42%
20,408,453
UBS Group AG
1.19%
17,035,990
Risk Analysis
Beta (Market Risk)
1.23
Moderate volatility — moves slightly more than market
Short Interest
7.5% of float
Moderate short interest
Debt-to-Equity
2.19x
High leverage — significant financial risk
Current Ratio
2.94x
Strong liquidity — Graham approved
52-Week Price Range
Low: $3.81Current: $4.96High: $9.13
Currently at 22% of 52-week range
Snap Inc. (SNAP) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $1.01. Margin of safety: 0%. Gross profit margin: 62.3%. Operating margin: 4.5%. Net margin: 3.3%. Market cap: $8.6B. 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.