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-23.4%
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-21.2%
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 Debt-9.4 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-$2.1B
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$200M
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-Book41.51x
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$233M
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-$218M
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 Snowflake Inc.
Snowflake Inc. provides a cloud-based data platform for various organizations in the United States and internationally. The company's platform includes artificial intelligence (AI) Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data applications, and share data and data products, as well as applies AI for solving business problems. It serves financial services, advertising, media and entertainment, retail and consumer goods, healthcare and life sciences, manufacturing, technology, telecom, travel and hospitality, and government and defense industries, as well as the public sector. the company has a collaboration with OpenAI, L.L.C. for the development of AI solutions for joint enterprise customers that deliver tangible return on investment. The company was formerly known as Snowflake Computing, Inc. and changed its name to Snowflake Inc. in April 2019. Snowflake Inc. was incorporated in 2012 and is based in Menlo Park, California.
Snowflake Inc. provides a cloud-based data platform for various organizations in the United States and internationally. The company's platform includes artificial intelligence (AI) Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data applications, and share data and data products, as well as applies AI for solving business problems. It serves financial services, advertising, media and entertainment, retail and consumer goods, healthcare and life sciences, manufacturing, technology, telecom, travel and hospitality, and government and defense industries, as well as the public sector. the company has a collaboration with OpenAI, L.L.C. for the development of AI solutions for joint enterprise customers that deliver tangible return on investment. The company was formerly known as Snowflake Computing, Inc. and changed its name to Snowflake Inc. in April 2019. Snowflake Inc. was incorporated in 2012 and is based in Menlo Park, 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
-295,571
-293,957
Reconciled Depreciation
67,605
57,878
Reconciled Cost Of Revenue
464,500
390,873
EBITDA
-226,975
-227,968
EBIT
-294,580
-285,846
Net Interest Income
39,065
43,406
Interest Expense
2,080
2,075
Interest Income
41,145
45,481
Normalized Income
-286,111
-293,756
Net Income From Continuing And Discontinued Operation
-295,571
-293,957
Total Expenses
1,717,105
1,542,382
Total Operating Income As Reported
-326,154
-329,473
Diluted Average Shares
345,391
339,648
Basic Average Shares
345,391
339,648
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
-295,571
-293,957
Net Income Common Stockholders
-295,571
-293,957
Net Income
-295,571
-293,957
Minority Interests
0
-2,354
Net Income Including Noncontrolling Interests
-295,571
-291,603
Net Income Continuous Operations
-295,571
-291,603
Tax Provision
-1,089
3,682
Pretax Income
-296,660
-287,921
Other Income Expense
-9,571
-1,854
Other Non Operating Income Expenses
-73
-1,599
Special Income Charges
-2,000
-500
Write Off
2,000
500
Gain On Sale Of Security
-7,498
245
Net Non Operating Interest Income Expense
39,065
43,406
Interest Expense Non Operating
2,080
2,075
Interest Income Non Operating
41,145
45,481
Operating Income
-326,154
-329,473
Operating Expense
1,252,605
1,151,509
Research And Development
534,937
494,027
Selling General And Administration
717,668
657,482
Selling And Marketing Expense
588,952
550,364
General And Administrative Expense
128,716
107,118
Other Gand A
128,716
107,118
Gross Profit
926,451
822,036
Cost Of Revenue
464,500
390,873
Total Revenue
1,390,951
1,212,909
Operating Revenue
1,390,951
1,212,909
Balance Sheet
2026
2025
2024
Treasury Shares Number
390
408
Ordinary Shares Number
346,601
342,065
Share Issued
346,991
342,473
Net Debt
197,188
336,092
120,531
Total Debt
2,772,095
2,685,615
Tangible Book Value
-109,131
573,722
Invested Capital
4,221,625
4,410,682
Working Capital
199,816
1,240,181
Net Tangible Assets
-109,131
573,722
Capital Lease Obligations
490,192
407,866
Common Stock Equity
1,939,722
2,132,933
Total Capitalization
4,221,625
4,410,682
Total Equity Gross Minority Interest
1,939,722
2,132,933
Minority Interest
0
Stockholders Equity
1,939,722
2,132,933
Gains Losses Not Affecting Retained Earnings
-3,639
5,123
Other Equity Adjustments
-3,639
5,123
Treasury Stock
53,261
55,714
Retained Earnings
-10,089,823
-9,034,696
Additional Paid In Capital
12,086,411
11,218,186
Capital Stock
34
34
Common Stock
34
34
Total Liabilities Net Minority Interest
6,614,534
6,097,258
Total Non Current Liabilities Net Minority Interest
2,837,243
2,713,944
Other Non Current Liabilities
95,268
57,653
Non Current Deferred Liabilities
25,663
10,884
Non Current Deferred Revenue
25,663
10,884
Long Term Debt And Capital Lease Obligation
2,716,312
2,645,407
Long Term Capital Lease Obligation
434,409
367,658
Long Term Debt
2,281,903
2,277,749
Current Liabilities
3,777,291
3,383,314
Other Current Liabilities
136,177
175,708
Current Deferred Liabilities
2,851,812
2,423,622
Current Deferred Revenue
2,851,812
2,423,622
Current Debt And Capital Lease Obligation
55,783
40,208
Current Capital Lease Obligation
55,783
40,208
Pensionand Other Post Retirement Benefit Plans Current
263,671
324,021
Payables And Accrued Expenses
469,848
419,755
Current Accrued Expenses
383,441
179,721
Payables
86,407
240,034
Total Tax Payable
31,345
46,343
Accounts Payable
55,062
193,691
Total Assets
8,554,256
8,230,191
Total Non Current Assets
4,577,149
3,606,696
Other Non Current Assets
412,043
403,686
Non Current Deferred Assets
222,000
209,511
Investments And Advances
1,432,494
1,041,474
Investmentin Financial Assets
1,432,494
1,041,474
Available For Sale Securities
1,432,494
1,041,474
Goodwill And Other Intangible Assets
2,048,853
1,559,211
Other Intangible Assets
511,668
384,251
Goodwill
1,537,185
1,174,960
Net PPE
461,759
392,814
Accumulated Depreciation
-95,173
-109,354
Gross PPE
556,932
502,168
Leases
135,589
125,781
Construction In Progress
11,190
22,281
Other Properties
294,863
254,641
Machinery Furniture Equipment
115,290
99,465
Current Assets
3,977,107
4,623,495
Other Current Assets
229,504
164,319
Current Deferred Assets
212,886
167,926
Receivables
579,719
938,145
Accounts Receivable
579,719
938,145
Allowance For Doubtful Accounts Receivable
-3,700
-2,800
Gross Accounts Receivable
941,845
599,152
Cash Cash Equivalents And Short Term Investments
2,954,998
3,353,105
Other Short Term Investments
870,283
1,411,448
Cash And Cash Equivalents
2,084,715
1,941,657
Cash Flow
2026
2025
2024
Free Cash Flow
232,772
113,614
Repurchase Of Capital Stock
-300,003
-232,896
Capital Expenditure
-10,451
-23,905
End Cash Position
2,128,678
1,984,631
Beginning Cash Position
2,864,303
1,960,838
Effect Of Exchange Rate Changes
-2,824
21
Changes In Cash
-732,801
23,772
Financing Cash Flow
-371,533
-361,986
Cash Flow From Continuing Financing Activities
-371,533
-361,986
Net Other Financing Charges
-145,096
-192,869
Proceeds From Stock Option Exercised
73,566
63,779
Net Common Stock Issuance
-300,003
-232,896
Common Stock Payments
-300,003
-232,896
Investing Cash Flow
-604,491
248,239
Cash Flow From Continuing Investing Activities
-604,491
248,239
Net Investment Purchase And Sale
-341,583
272,144
Sale Of Investment
554,864
613,316
Purchase Of Investment
-896,447
-341,172
Net Business Purchase And Sale
-252,457
0
Purchase Of Business
-252,457
0
Net Intangibles Purchase And Sale
0
0
Purchase Of Intangibles
0
0
Net PPE Purchase And Sale
-10,451
-23,905
Purchase Of PPE
-10,451
-23,905
Capital Expenditure Reported
0
Operating Cash Flow
243,223
137,519
Cash Flow From Continuing Operating Activities
243,223
137,519
Change In Working Capital
-30,249
-80,639
Change In Other Working Capital
-565,340
54,636
Change In Other Current Liabilities
-19,207
-15,990
Change In Payables And Accrued Expense
-170,464
149,568
Change In Accrued Expense
-80,791
120,620
Change In Payable
-89,673
28,948
Change In Account Payable
-89,673
28,948
Change In Prepaid Assets
-22,455
19,823
Change In Receivables
747,217
-288,676
Changes In Account Receivables
747,217
-288,676
Other Non Cash Items
80,513
44,354
Stock Based Compensation
402,470
412,278
Asset Impairment Charge
17,724
96
Amortization Of Securities
-2,205
-5,100
Deferred Tax
-6,562
0
Deferred Income Tax
-6,562
0
Depreciation Amortization Depletion
67,605
57,878
Depreciation And Amortization
67,605
57,878
Operating Gains Losses
9,498
255
Gain Loss On Investment Securities
9,498
255
Net Income From Continuing Operations
-295,571
-291,603
📊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: $1.0B▲ $1.4B+33.5%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 66.5%▲ 66.6%+0.1pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: -31.3%▲ -23.4%+7.9pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: -41.3%▲ -21.2%+20.0pp
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.
$1.4B/qtr (≈$5.6B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.05x 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.
$233M
vs Positive
Operating Cash Flow
$243M
Latest quarter · Buffett's cash reality check
ROIC
-5.4%
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
41.5x
Net Assets: $1.9B
Asset Context — Software - Application
Software companies store most of their value in code, IP, recurring revenue, and customer relationships — none of which appear on the balance sheet under GAAP. Book value and Net Assets are poor proxies for intrinsic value here. Focus on ROIC, gross margin trajectory, and free cash flow instead.
Peers & Industry
No auto-detected peers for Software - Application. You can manually compare SNOW against any stock using the Compare tool.
"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
2.87%
Low — management has little skin in the game
Return on Equity (ROE)
-15.2%
Weak — poor returns on equity
Return on Assets (ROA)
-3.5%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$874M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+1.1% YoY
Debt is roughly stable
Leadership Team
Sridhar Ramaswamy Ph.
CEO & Director
Age 58
Pay: $1,523,031
Benoit Dageville Ph.
Co-Founder, Chief Architect & President of Product Division & Director
Age 58
Brian Robins
Chief Financial Officer
Age 55
Pay: $722,647
Christian Kleinerman
Executive Vice President of Product Management
Age 49
Pay: $811,081
Vivek Raghunathan
Senior Vice President of Engineering & Support
Age 46
Pay: $758,093
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
8.07%
27,962,714
Vanguard Capital Management LLC
4.26%
14,777,513
Vanguard Portfolio Management LLC
3.71%
12,842,543
JPMORGAN CHASE & CO
3.23%
11,187,132
FMR, LLC
3.10%
10,746,987
State Street Corporation
2.21%
7,662,565
Morgan Stanley
2.08%
7,213,093
Jennison Associates LLC
2.07%
7,164,080
Risk Analysis
Beta (Market Risk)
1.35
Moderate volatility — moves slightly more than market
Short Interest
6.3% of float
Moderate short interest
Debt-to-Equity
1.43x
Moderate leverage
Current Ratio
1.05x
Adequate liquidity
52-Week Price Range
Low: $118.30Current: $232.29High: $284.99
Currently at 68% of 52-week range
Snowflake Inc. (SNOW) 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: 66.6%. Operating margin: -23.4%. Net margin: -21.2%. Market cap: $80.5B. Sector: Technology. Industry: Software - Application. 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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