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 191 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 shows excellent growth, but is valued quite expensive already. These ratings could make PEN a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
PEN had positive earnings in the past year.
In the past year PEN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PEN reported negative net income in multiple years.
In multiple years PEN reported negative operating cash flow during the last 5 years.
1.2 Ratios
PEN's Return On Assets of 0.91% is fine compared to the rest of the industry. PEN outperforms 73.82% of its industry peers.
With a decent Return On Equity value of 1.22%, PEN is doing good in the industry, outperforming 74.87% of the companies in the same industry.
PEN has a better Return On Invested Capital (5.84%) than 80.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PEN is below the industry average of 7.68%.
The last Return On Invested Capital (5.84%) for PEN is above the 3 year average (2.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 1.22% | ||
| ROIC | 5.84% |
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 (1.17%) than 74.35% of its industry peers.
PEN's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 10.01%, PEN is doing good in the industry, outperforming 78.01% of the companies in the same industry.
In the last couple of years the Operating Margin of PEN has declined.
PEN has a Gross Margin of 65.99%. This is in the better half of the industry: PEN outperforms 69.11% 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 | 10.01% | ||
| PM (TTM) | 1.17% | ||
| GM | 65.99% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PEN is destroying value.
The number of shares outstanding for PEN has been reduced compared to 1 year ago.
The number of shares outstanding for PEN has been increased compared to 5 years ago.
The debt/assets ratio for PEN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 18.64 indicates that PEN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 18.64, PEN belongs to the top of the industry, outperforming 95.81% of the companies in the same industry.
The Debt to FCF ratio of PEN is 0.16, which is an excellent value as it means it would take PEN, only 0.16 years of fcf income to pay off all of its debts.
PEN has a Debt to FCF ratio of 0.16. This is amongst the best in the industry. PEN outperforms 94.24% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that PEN is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.02, PEN is doing good in the industry, outperforming 67.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.16 | ||
| Altman-Z | 18.64 |
ROIC/WACC0.64
WACC9.15%
2.3 Liquidity
PEN has a Current Ratio of 6.01. This indicates that PEN is financially healthy and has no problem in meeting its short term obligations.
PEN has a better Current ratio (6.01) than 83.77% of its industry peers.
PEN has a Quick Ratio of 3.44. This indicates that PEN is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 3.44, PEN is doing good in the industry, outperforming 68.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.01 | ||
| Quick Ratio | 3.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.93% over the past year.
PEN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.23% yearly.
The Revenue has grown by 12.86% in the past year. This is quite good.
The Revenue has been growing by 16.89% on average over the past years. This is quite good.
EPS 1Y (TTM)44.93%
EPS 3Y60.05%
EPS 5Y24.23%
EPS Q2Q%102.44%
Revenue 1Y (TTM)12.86%
Revenue growth 3Y16.91%
Revenue growth 5Y16.89%
Sales Q2Q%16.32%
3.2 Future
Based on estimates for the next years, PEN will show a very strong growth in Earnings Per Share. The EPS will grow by 24.91% on average per year.
The Revenue is expected to grow by 12.47% on average over the next years. This is quite good.
EPS Next Y28.94%
EPS Next 2Y31.9%
EPS Next 3Y29.21%
EPS Next 5Y24.91%
Revenue Next Year13.47%
Revenue Next 2Y13.84%
Revenue Next 3Y13.69%
Revenue Next 5Y12.47%
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.
4. Valuation
4.1 Price/Earnings Ratio
PEN is valuated quite expensively with a Price/Earnings ratio of 91.00.
65.97% of the companies in the same industry are more expensive than PEN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.64, PEN is valued quite expensively.
With a Price/Forward Earnings ratio of 59.97, PEN can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, PEN is valued a bit cheaper than 69.63% 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 21.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 91 | ||
| Fwd PE | 59.97 |
4.2 Price Multiples
64.40% of the companies in the same industry are more expensive than PEN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PEN indicates a somewhat cheap valuation: PEN is cheaper than 71.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.62 | ||
| EV/EBITDA | 72.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as PEN's earnings are expected to grow with 29.21% in the coming years.
PEG (NY)3.14
PEG (5Y)3.76
EPS Next 2Y31.9%
EPS Next 3Y29.21%
5. Dividend
5.1 Amount
No dividends for PEN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:PEN (4/24/2025, 2:31:19 PM)
299.4
+20.63 (+7.4%)
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 Change0.54%
Ins Owners3.87%
Ins Owner Change4.95%
Market Cap11.58B
Analysts82.5
Price Target314.46 (5.03%)
Short Float %3.67%
Short Ratio2.76
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)14.72%
Min EPS beat(2)6.98%
Max EPS beat(2)22.45%
EPS beat(4)4
Avg EPS beat(4)12.59%
Min EPS beat(4)6.98%
Max EPS beat(4)22.45%
EPS beat(8)8
Avg EPS beat(8)33.2%
EPS beat(12)11
Avg EPS beat(12)25.52%
EPS beat(16)13
Avg EPS beat(16)27.5%
Revenue beat(2)2
Avg Revenue beat(2)0.25%
Min Revenue beat(2)0.22%
Max Revenue beat(2)0.28%
Revenue beat(4)3
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-0.64%
Max Revenue beat(4)0.37%
Revenue beat(8)6
Avg Revenue beat(8)0.75%
Revenue beat(12)8
Avg Revenue beat(12)0.81%
Revenue beat(16)12
Avg Revenue beat(16)2.14%
PT rev (1m)0.21%
PT rev (3m)19.6%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)-8.56%
EPS NY rev (1m)0.46%
EPS NY rev (3m)-3.91%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 91 | ||
| Fwd PE | 59.97 | ||
| P/S | 9.69 | ||
| P/FCF | 78.62 | ||
| P/OCF | 68.74 | ||
| P/B | 10.06 | ||
| P/tB | 11.83 | ||
| EV/EBITDA | 72.94 |
EPS(TTM)3.29
EY1.1%
EPS(NY)4.99
Fwd EY1.67%
FCF(TTM)3.81
FCFY1.27%
OCF(TTM)4.36
OCFY1.45%
SpS30.88
BVpS29.76
TBVpS25.3
PEG (NY)3.14
PEG (5Y)3.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 1.22% | ||
| ROCE | 8.7% | ||
| ROIC | 5.84% | ||
| ROICexc | 7.76% | ||
| ROICexgc | 9.31% | ||
| OM | 10.01% | ||
| PM (TTM) | 1.17% | ||
| GM | 65.99% | ||
| FCFM | 12.33% |
ROA(3y)2.2%
ROA(5y)1.03%
ROE(3y)2.91%
ROE(5y)1.37%
ROIC(3y)2.98%
ROIC(5y)N/A
ROICexc(3y)3.84%
ROICexc(5y)N/A
ROICexgc(3y)4.75%
ROICexgc(5y)N/A
ROCE(3y)4.43%
ROCE(5y)N/A
ROICexcg growth 3Y49.31%
ROICexcg growth 5Y-5.8%
ROICexc growth 3Y58%
ROICexc growth 5Y-7.52%
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%
F-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.16 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 89.37% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.59% | ||
| Profit Quality | 1051.23% | ||
| Current Ratio | 6.01 | ||
| Quick Ratio | 3.44 | ||
| Altman-Z | 18.64 |
F-Score7
WACC9.15%
ROIC/WACC0.64
Cap/Depr(3y)74.85%
Cap/Depr(5y)109.14%
Cap/Sales(3y)1.83%
Cap/Sales(5y)2.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)44.93%
EPS 3Y60.05%
EPS 5Y24.23%
EPS Q2Q%102.44%
EPS Next Y28.94%
EPS Next 2Y31.9%
EPS Next 3Y29.21%
EPS Next 5Y24.91%
Revenue 1Y (TTM)12.86%
Revenue growth 3Y16.91%
Revenue growth 5Y16.89%
Sales Q2Q%16.32%
Revenue Next Year13.47%
Revenue Next 2Y13.84%
Revenue Next 3Y13.69%
Revenue Next 5Y12.47%
EBIT growth 1Y30.37%
EBIT growth 3Y67.65%
EBIT growth 5Y12.66%
EBIT Next Year73.67%
EBIT Next 3Y39.05%
EBIT Next 5Y27.76%
FCF growth 1Y79.37%
FCF growth 3YN/A
FCF growth 5Y100.55%
OCF growth 1Y73.1%
OCF growth 3Y160.78%
OCF growth 5Y44.6%