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Splunk Inc. (SPLK) Stock Guide

September 18, 2020
57
Bull Case
  • Company’s profitability is improving
  • Buy analyst rating
  • Average analyst stock price above current stock price
  • Cash/Debt ratio is higher than the industry and sector averages
Bear Case
  • Revenue growth lower than the industry and sector averages
  • High short share of float
  • High short interest

Before we start: if you're looking for SPLK stock price, you can quickly find it out by visiting Finny and typing "SPLK quote". If you're looking for a quick scoop on SPLK stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "SPLK". You'll get all this info in one place. Or you can just type "SPLK news" to get the latest stock news.

Looking to buy or sell Splunk Inc. (SPLK)? Interested in getting the full scoop on SPLK, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this SPLK stock guide, we'll address key questions about SPLK, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are SPLK earnings?
2. What is SPLK stock forecast (i.e., prediction)?
3. SPLK buy or sell? What is SPLK Finny Score?
4. What are the reasons to buy SPLK? Why should I buy SPLK stock?
5. What are the reasons to sell SPLK? Why should I sell SPLK stock?
6. What are SPLK key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are SPLK earnings?

SPLK trailing 12-month earnings per share (EPS) is -$4.14.

Analyst Predictions

2. What is SPLK stock forecast (i.e., prediction)?

Based on SPLK analyst price targets, SPLK stock forecast is $227.63 (for a year from now). That means the average analyst price target for SPLK stock is $227.63. The prediction is based on 43 analyst estimates.

The low price target for SPLK is $107.40, while the high price target is $300.00.

SPLK analyst rating is Buy.

Analysis

3. SPLK buy or sell? What is SPLK Finny Score?

Our quantitative analysis shows 4 reasons to buy and 3 reasons to sell SPLK, resulting in Finny Score of 57.

4. What are the reasons to buy SPLK? Why should I buy SPLK stock?

Here are the reasons to buy SPLK stock:

  • Splunk’s schema-on-the-fly allows the firm’s software to compile and analyze data across multiple formats and disparate sources, creating an edge over legacy vendors.
  • Splunk’s price-per-gigabyte approach affords the company significant pricing power as customers increase the amount of data flowing through the software.
  • The versatility and open nature of Splunk’s software allows for heavy customization, which we believe works toward elevating customer switching costs.
  • SPLK profitability is improving. The YoY profit margin change was 17.00 percentage points. See SPLK profitability chart.
  • SPLK average analyst rating is Buy. See SPLK analyst rating chart.
  • SPLK average analyst price target ($227.63) is above its current price ($172.98). See SPLK price target chart.
  • SPLK cash to debt ratio is 0.79, higher than the average industry (0.16) and sector (0.17) cash to debt ratio. See SPLK cash to debt chart.

5. What are the reasons to sell SPLK? Why should I sell SPLK stock?

Let's look at the reasons to sell SPLK stock (i.e., the bear case):

  • A number of large, well-capitalized software vendors are vying to retain large customer bases, spurring investment to mimic Splunk’s technology.
  • Outside of SIEM, Splunk has a relatively modest market share, leaving the company vulnerable should competitors step up their efforts in these use cases.
  • Sales and marketing spending is much higher than we would expect from a software company with Splunk’s revenue, which could create challenges in generating operating leverage.
  • SPLK quarterly revenue growth was -4.80%, lower than the industry and sector average revenue growth (1.11% and 0.89%, respectively). See SPLK revenue growth chart.
  • SPLK short share of float is 6.01%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See SPLK short share of float chart.
  • SPLK short interest (days to cover the shorts) ratio is 6.24. The stock garners more short interest than the average industry, sector or S&P 500 stock. See SPLK short interest ratio chart.

Key Stats

6. What are SPLK key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for SPLK:

Metrics SPLK
Price $207.18
Average Price Target / Upside $230.79 / 11.40%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Software - Application
Sector Technology
Number of Employees 3,200
Market Cap $33.56B
Forward P/E Ratio 278.97
Price/Book Ratio 14.32
Revenue (TTM) $2.34B
YoY Quarterly Revenue Growth -4.80%
Profit Margin -27.62%

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