PENUMBRA INC (PEN) Stock Fundamental Analysis
NYSE:PEN - New York Stock Exchange, Inc. - US70975L1070 - Common Stock - Currency: USD
Taking everything into account, PEN scores 6 out of 10 in our fundamental rating. PEN was compared to 187 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 growing strongly while it is still valued neutral. This is a good combination! These ratings could make PEN a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year PEN was profitable.
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 2.65% is fine compared to the rest of the industry. PEN outperforms 77.01% of its industry peers.
With a decent Return On Equity value of 3.48%, PEN is doing good in the industry, outperforming 77.01% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.92%, PEN belongs to the top of the industry, outperforming 82.89% of the companies in the same industry.
PEN had an Average Return On Invested Capital over the past 3 years of 2.98%. This is below the industry average of 7.89%.
The last Return On Invested Capital (6.92%) for PEN is above the 3 year average (2.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 3.48% | ||
| ROIC | 6.92% |
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 (3.41%) than 75.40% of its industry peers.
In the last couple of years the Profit Margin of PEN has declined.
Looking at the Operating Margin, with a value of 11.92%, PEN is in the better half of the industry, outperforming 79.14% of the companies in the same industry.
In the last couple of years the Operating Margin of PEN has declined.
The Gross Margin of PEN (66.37%) is better than 70.59% of its industry peers.
PEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.92% | ||
| PM (TTM) | 3.41% | ||
| GM | 66.37% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PEN is destroying value.
Compared to 1 year ago, PEN has less shares outstanding
PEN has more shares outstanding than it did 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 15.86 indicates that PEN is not in any danger for bankruptcy at the moment.
PEN has a Altman-Z score of 15.86. This is amongst the best in the industry. PEN outperforms 92.51% of its industry peers.
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.
The Debt to FCF ratio of PEN (0.16) is better than 94.65% 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 66.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.16 | ||
| Altman-Z | 15.86 |
ROIC/WACC0.76
WACC9.06%
2.3 Liquidity
PEN has a Current Ratio of 6.30. This indicates that PEN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 6.30, PEN belongs to the best of the industry, outperforming 83.96% of the companies in the same industry.
PEN has a Quick Ratio of 3.68. This indicates that PEN is financially healthy and has no problem in meeting its short term obligations.
PEN's Quick ratio of 3.68 is fine compared to the rest of the industry. PEN outperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.3 | ||
| Quick Ratio | 3.68 |
3. Growth
3.1 Past
PEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.93%, which is quite impressive.
PEN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.23% yearly.
Looking at the last year, PEN shows a quite strong growth in Revenue. The Revenue has grown by 13.18% in the last year.
Measured over the past years, PEN shows a quite strong growth in Revenue. The Revenue has been growing by 16.89% on average per year.
EPS 1Y (TTM)44.93%
EPS 3Y60.05%
EPS 5Y24.23%
EPS Q2Q%102.44%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y16.91%
Revenue growth 5Y16.89%
Sales Q2Q%16.32%
3.2 Future
The Earnings Per Share is expected to grow by 25.44% on average over the next years. This is a very strong growth
PEN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.69% yearly.
EPS Next Y32.53%
EPS Next 2Y32.73%
EPS Next 3Y30.3%
EPS Next 5Y25.44%
Revenue Next Year13.8%
Revenue Next 2Y14.02%
Revenue Next 3Y13.89%
Revenue Next 5Y12.69%
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
Based on the Price/Earnings ratio of 70.02, the valuation of PEN can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PEN indicates a somewhat cheap valuation: PEN is cheaper than 65.78% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PEN to the average of the S&P500 Index (27.50), we can say PEN is valued expensively.
PEN is valuated quite expensively with a Price/Forward Earnings ratio of 45.56.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PEN indicates a somewhat cheap valuation: PEN is cheaper than 67.91% of the companies listed in the same industry.
PEN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.02 | ||
| Fwd PE | 45.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEN is valued a bit cheaper than the industry average as 66.84% of the companies are valued more expensively.
71.66% 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 | 59.35 | ||
| EV/EBITDA | 50.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PEN does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as PEN's earnings are expected to grow with 30.30% in the coming years.
PEG (NY)2.15
PEG (5Y)2.89
EPS Next 2Y32.73%
EPS Next 3Y30.3%
5. Dividend
5.1 Amount
No dividends for PEN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
230.38
+0.28 (+0.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners91.81%
Inst Owner Change-0.02%
Ins Owners3.48%
Ins Owner Change8.24%
Market Cap8.92B
Analysts81.74
Price Target320.41 (39.08%)
Short Float %5.08%
Short Ratio3.92
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)15.42%
Min EPS beat(2)6.98%
Max EPS beat(2)23.86%
EPS beat(4)4
Avg EPS beat(4)16.72%
Min EPS beat(4)6.98%
Max EPS beat(4)23.86%
EPS beat(8)8
Avg EPS beat(8)22.55%
EPS beat(12)12
Avg EPS beat(12)37.31%
EPS beat(16)13
Avg EPS beat(16)16.76%
Revenue beat(2)2
Avg Revenue beat(2)0.98%
Min Revenue beat(2)0.28%
Max Revenue beat(2)1.67%
Revenue beat(4)3
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-0.64%
Max Revenue beat(4)1.67%
Revenue beat(8)6
Avg Revenue beat(8)0.45%
Revenue beat(12)8
Avg Revenue beat(12)0.68%
Revenue beat(16)12
Avg Revenue beat(16)1.64%
PT rev (1m)0%
PT rev (3m)2.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.65%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.02 | ||
| Fwd PE | 45.56 | ||
| P/S | 7.2 | ||
| P/FCF | 59.35 | ||
| P/OCF | 49.8 | ||
| P/B | 7.36 | ||
| P/tB | 8.58 | ||
| EV/EBITDA | 50.6 |
EPS(TTM)3.29
EY1.43%
EPS(NY)5.06
Fwd EY2.19%
FCF(TTM)3.88
FCFY1.68%
OCF(TTM)4.63
OCFY2.01%
SpS32.02
BVpS31.32
TBVpS26.86
PEG (NY)2.15
PEG (5Y)2.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 3.48% | ||
| ROCE | 10.3% | ||
| ROIC | 6.92% | ||
| ROICexc | 9.4% | ||
| ROICexgc | 11.24% | ||
| OM | 11.92% | ||
| PM (TTM) | 3.41% | ||
| GM | 66.37% | ||
| FCFM | 12.12% |
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-Score8
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.16 | ||
| Debt/EBITDA | 0.13 | ||
| Cap/Depr | 135.98% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.99% | ||
| Profit Quality | 355.96% | ||
| Current Ratio | 6.3 | ||
| Quick Ratio | 3.68 | ||
| Altman-Z | 15.86 |
F-Score8
WACC9.06%
ROIC/WACC0.76
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 Y32.53%
EPS Next 2Y32.73%
EPS Next 3Y30.3%
EPS Next 5Y25.44%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y16.91%
Revenue growth 5Y16.89%
Sales Q2Q%16.32%
Revenue Next Year13.8%
Revenue Next 2Y14.02%
Revenue Next 3Y13.89%
Revenue Next 5Y12.69%
EBIT growth 1Y54.26%
EBIT growth 3Y67.65%
EBIT growth 5Y12.66%
EBIT Next Year76.61%
EBIT Next 3Y39.22%
EBIT Next 5Y31.32%
FCF growth 1Y367.26%
FCF growth 3YN/A
FCF growth 5Y100.55%
OCF growth 1Y571.22%
OCF growth 3Y160.78%
OCF growth 5Y44.6%