Overall PEN gets a fundamental rating of 6 out of 10. We evaluated PEN against 186 industry peers in the Health Care Equipment & Supplies industry. While PEN has a great health rating, its profitability is only average at the moment. PEN is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes PEN very considerable for growth investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

PEN had positive earnings in the past year.
PEN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PEN reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: PEN reported negative operating cash flow in multiple years.

1.2 Ratios

PEN has a Return On Assets of 9.40%. This is amongst the best in the industry. PEN outperforms 91.94% of its industry peers.
PEN has a better Return On Equity (12.07%) than 88.71% of its industry peers.
PEN has a better Return On Invested Capital (7.37%) than 82.26% of its industry peers.
PEN had an Average Return On Invested Capital over the past 3 years of 2.98%. This is significantly below the industry average of 8.84%.
The last Return On Invested Capital (7.37%) for PEN is above the 3 year average (2.98%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	9.4%
ROE	12.07%
ROIC	7.37%

ROA(3y)2.2%

ROA(5y)1.03%

ROE(3y)2.91%

ROE(5y)1.37%

ROIC(3y)2.98%

ROIC(5y)N/A

1.3 Margins

PEN has a better Profit Margin (12.30%) than 88.17% of its industry peers.
In the last couple of years the Profit Margin of PEN has declined.
The Operating Margin of PEN (12.95%) is better than 80.65% of its industry peers.
In the last couple of years the Operating Margin of PEN has declined.
The Gross Margin of PEN (66.80%) is better than 70.97% of its industry peers.
In the last couple of years the Gross Margin of PEN has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	12.95%
PM (TTM)	12.3%
GM	66.8%

OM growth 3Y43.4%

OM growth 5Y-3.62%

PM growth 3Y18.27%

PM growth 5Y-33.26%

GM growth 3Y-0.21%

GM growth 5Y-1.44%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

PEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PEN has been reduced compared to 1 year ago.
Compared to 5 years ago, PEN has more shares outstanding
PEN has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 23.76 indicates that PEN is not in any danger for bankruptcy at the moment.
PEN has a Altman-Z score of 23.76. This is amongst the best in the industry. PEN outperforms 96.77% of its industry peers.
The Debt to FCF ratio of PEN is 0.15, which is an excellent value as it means it would take PEN, only 0.15 years of fcf income to pay off all of its debts.
PEN has a Debt to FCF ratio of 0.15. This is amongst the best in the industry. PEN outperforms 93.01% of its industry peers.
PEN has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
PEN's Debt to Equity ratio of 0.02 is fine compared to the rest of the industry. PEN outperforms 71.51% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.02
Debt/FCF	0.15
Altman-Z	23.76

ROIC/WACC0.74

WACC10.01%

2.3 Liquidity

PEN has a Current Ratio of 6.73. This indicates that PEN is financially healthy and has no problem in meeting its short term obligations.
PEN has a better Current ratio (6.73) than 86.02% of its industry peers.
A Quick Ratio of 4.18 indicates that PEN has no problem at all paying its short term obligations.
PEN's Quick ratio of 4.18 is fine compared to the rest of the industry. PEN outperforms 77.42% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	6.73
Quick Ratio	4.18

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 36.47% over the past year.
Measured over the past years, PEN shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.23% on average per year.
The Revenue has grown by 14.61% in the past year. This is quite good.
PEN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.89% yearly.

EPS 1Y (TTM)36.47%

EPS 3Y60.05%

EPS 5Y24.23%

EPS Q2Q%14.12%

Revenue 1Y (TTM)14.61%

Revenue growth 3Y16.91%

Revenue growth 5Y16.89%

Sales Q2Q%17.82%

3.2 Future

The Earnings Per Share is expected to grow by 24.42% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.24% on average over the next years. This is quite good.

EPS Next Y32.98%

EPS Next 2Y33.42%

EPS Next 3Y31.48%

EPS Next 5Y24.42%

Revenue Next Year15.96%

Revenue Next 2Y15.04%

Revenue Next 3Y14.52%

Revenue Next 5Y13.24%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 98.97, PEN can be considered very expensive at the moment.
Based on the Price/Earnings ratio, PEN is valued a bit cheaper than 66.13% of the companies in the same industry.
PEN is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 70.32 indicates a quite expensive valuation of PEN.
Based on the Price/Forward Earnings ratio, PEN is valued a bit cheaper than 67.20% of the companies in the same industry.
PEN's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.26.

		Industry Rank	Sector Rank
PE	98.97
Fwd PE	70.32

4.2 Price Multiples

65.05% of the companies in the same industry are more expensive than PEN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PEN is valued a bit cheaper than 70.43% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	92.18
EV/EBITDA	70.69

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of PEN may justify a higher PE ratio.
A more expensive valuation may be justified as PEN's earnings are expected to grow with 31.48% in the coming years.