PENUMBRA INC (PEN) Stock Fundamental Analysis
NYSE:PEN - New York Stock Exchange, Inc. - US70975L1070 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to PEN. PEN was compared to 190 industry peers in the Health Care Equipment & Supplies industry. PEN has an excellent financial health rating, but there are some minor concerns on its profitability. PEN is not valued too expensively and it also shows a decent growth rate.
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's Return On Assets of 2.34% is fine compared to the rest of the industry. PEN outperforms 74.47% of its industry peers.
With a decent Return On Equity value of 3.13%, PEN is doing good in the industry, outperforming 75.53% of the companies in the same industry.
PEN's Return On Invested Capital of 6.66% is amongst the best of the industry. PEN outperforms 83.51% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PEN is significantly below the industry average of 8.19%.
The last Return On Invested Capital (6.66%) for PEN is above the 3 year average (2.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 3.13% | ||
| ROIC | 6.66% |
ROA(3y)2.04%
ROA(5y)2.3%
ROE(3y)2.69%
ROE(5y)3.12%
ROIC(3y)2.28%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 2.97%, PEN is in the better half of the industry, outperforming 73.94% of the companies in the same industry.
PEN's Profit Margin has improved in the last couple of years.
PEN has a better Operating Margin (9.61%) than 78.19% of its industry peers.
PEN's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 65.70%, PEN is doing good in the industry, outperforming 69.15% of the companies in the same industry.
PEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.61% | ||
| PM (TTM) | 2.97% | ||
| GM | 65.7% |
OM growth 3YN/A
OM growth 5Y5.22%
PM growth 3YN/A
PM growth 5Y42.09%
GM growth 3Y2.24%
GM growth 5Y-0.38%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PEN is destroying value.
PEN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
PEN has an Altman-Z score of 20.28. This indicates that PEN is financially healthy and has little risk of bankruptcy at the moment.
PEN has a better Altman-Z score (20.28) than 94.68% of its industry peers.
PEN has a debt to FCF ratio of 0.18. This is a very positive value and a sign of high solvency as it would only need 0.18 years to pay back of all of its debts.
The Debt to FCF ratio of PEN (0.18) is better than 92.55% 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 64.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 20.28 |
ROIC/WACC0.74
WACC9.05%
2.3 Liquidity
PEN has a Current Ratio of 5.82. This indicates that PEN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 5.82, PEN belongs to the best of the industry, outperforming 82.45% of the companies in the same industry.
A Quick Ratio of 3.25 indicates that PEN has no problem at all paying its short term obligations.
PEN has a Quick ratio of 3.25. This is in the better half of the industry: PEN outperforms 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.82 | ||
| Quick Ratio | 3.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.32% over the past year.
The Earnings Per Share has been growing by 24.23% on average over the past years. This is a very strong growth
EPS 1Y (TTM)37.32%
EPS 3Y60.05%
EPS 5Y24.23%
EPS Q2Q%27.63%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%10.83%
3.2 Future
The Earnings Per Share is expected to grow by 24.44% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.41% on average over the next years. This is quite good.
EPS Next Y28.36%
EPS Next 2Y31.53%
EPS Next 3Y29.72%
EPS Next 5Y24.44%
Revenue Next Year14.3%
Revenue Next 2Y14.31%
Revenue Next 3Y13.97%
Revenue Next 5Y12.41%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 101.63, PEN can be considered very expensive at the moment.
Based on the Price/Earnings ratio, PEN is valued a bit cheaper than the industry average as 64.36% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.63, PEN is valued quite expensively.
The Price/Forward Earnings ratio is 79.18, which means the current valuation is very expensive for PEN.
67.02% of the companies in the same industry are more expensive than PEN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, PEN is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.63 | ||
| Fwd PE | 79.18 |
4.2 Price Multiples
64.36% of the companies in the same industry are more expensive than PEN, based on the Enterprise Value to EBITDA ratio.
70.21% of the companies in the same industry are more expensive than PEN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.43 | ||
| EV/EBITDA | 82.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEN has a very decent profitability rating, which may justify a higher PE ratio.
PEN's earnings are expected to grow with 29.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.58
PEG (5Y)4.19
EPS Next 2Y31.53%
EPS Next 3Y29.72%
5. Dividend
5.1 Amount
PEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
291.68
-11.44 (-3.77%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners92.16%
Inst Owner Change-1.51%
Ins Owners3.87%
Ins Owner Change0.73%
Market Cap11.19B
Analysts81.74
Price Target271.44 (-6.94%)
Short Float %3.89%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.03%
Min EPS beat(2)13.6%
Max EPS beat(2)22.45%
EPS beat(4)4
Avg EPS beat(4)12.73%
Min EPS beat(4)7.31%
Max EPS beat(4)22.45%
EPS beat(8)8
Avg EPS beat(8)33.42%
EPS beat(12)10
Avg EPS beat(12)20.39%
EPS beat(16)13
Avg EPS beat(16)68.98%
Revenue beat(2)1
Avg Revenue beat(2)-0.21%
Min Revenue beat(2)-0.64%
Max Revenue beat(2)0.22%
Revenue beat(4)2
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-1.64%
Max Revenue beat(4)0.37%
Revenue beat(8)6
Avg Revenue beat(8)0.81%
Revenue beat(12)8
Avg Revenue beat(12)1.12%
Revenue beat(16)12
Avg Revenue beat(16)2.67%
PT rev (1m)2.75%
PT rev (3m)22.18%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)-0.87%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.63 | ||
| Fwd PE | 79.18 | ||
| P/S | 9.62 | ||
| P/FCF | 83.43 | ||
| P/OCF | 72.86 | ||
| P/B | 10.14 | ||
| P/tB | 12.02 | ||
| EV/EBITDA | 82.18 |
EPS(TTM)2.87
EY0.98%
EPS(NY)3.68
Fwd EY1.26%
FCF(TTM)3.5
FCFY1.2%
OCF(TTM)4
OCFY1.37%
SpS30.32
BVpS28.77
TBVpS24.26
PEG (NY)3.58
PEG (5Y)4.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 3.13% | ||
| ROCE | 8.43% | ||
| ROIC | 6.66% | ||
| ROICexc | 8.54% | ||
| ROICexgc | 10.25% | ||
| OM | 9.61% | ||
| PM (TTM) | 2.97% | ||
| GM | 65.7% | ||
| FCFM | 11.53% |
ROA(3y)2.04%
ROA(5y)2.3%
ROE(3y)2.69%
ROE(5y)3.12%
ROIC(3y)2.28%
ROIC(5y)N/A
ROICexc(3y)2.88%
ROICexc(5y)N/A
ROICexgc(3y)3.74%
ROICexgc(5y)N/A
ROCE(3y)2.89%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-5.74%
ROICexc growth 3YN/A
ROICexc growth 5Y-7.37%
OM growth 3YN/A
OM growth 5Y5.22%
PM growth 3YN/A
PM growth 5Y42.09%
GM growth 3Y2.24%
GM growth 5Y-0.38%
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.18 | ||
| Debt/EBITDA | 0.16 | ||
| Cap/Depr | 73.83% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 111.18% | ||
| Profit Quality | 388.4% | ||
| Current Ratio | 5.82 | ||
| Quick Ratio | 3.25 | ||
| Altman-Z | 20.28 |
F-Score7
WACC9.05%
ROIC/WACC0.74
Cap/Depr(3y)88.08%
Cap/Depr(5y)145.86%
Cap/Sales(3y)2.18%
Cap/Sales(5y)3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.32%
EPS 3Y60.05%
EPS 5Y24.23%
EPS Q2Q%27.63%
EPS Next Y28.36%
EPS Next 2Y31.53%
EPS Next 3Y29.72%
EPS Next 5Y24.44%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%10.83%
Revenue Next Year14.3%
Revenue Next 2Y14.31%
Revenue Next 3Y13.97%
Revenue Next 5Y12.41%
EBIT growth 1Y81.85%
EBIT growth 3YN/A
EBIT growth 5Y25.14%
EBIT Next Year85.93%
EBIT Next 3Y42.75%
EBIT Next 5Y31.16%
FCF growth 1Y248.93%
FCF growth 3YN/A
FCF growth 5Y33.72%
OCF growth 1Y331.83%
OCF growth 3YN/A
OCF growth 5Y27.57%