PENUMBRA INC (PEN) Stock Fundamental Analysis
NYSE:PEN - New York Stock Exchange, Inc. - US70975L1070 - Common Stock - Currency: USD
PEN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 187 industry peers in the Health Care Equipment & Supplies industry. PEN is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. PEN is not priced too expensively while it is growing strongly. Keep and eye on this one! 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.
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.
In multiple years PEN reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.65%, PEN is in the better half of the industry, outperforming 77.01% of the companies in the same industry.
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.
PEN has a Return On Invested Capital of 6.92%. This is amongst the best in the industry. PEN outperforms 82.89% of its industry peers.
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
Looking at the Profit Margin, with a value of 3.41%, PEN is in the better half of the industry, outperforming 75.40% of the companies in the same industry.
PEN's Profit Margin has declined in the last couple of years.
PEN has a better Operating Margin (11.92%) than 79.14% of its industry peers.
In the last couple of years the Operating Margin of PEN has declined.
PEN's Gross Margin of 66.37% is fine compared to the rest of the industry. PEN outperforms 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.
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
Compared to 1 year ago, PEN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 17.14 indicates that PEN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 17.14, PEN belongs to the best of the industry, outperforming 93.58% of the companies in the same industry.
PEN has a debt to FCF ratio of 0.16. This is a very positive value and a sign of high solvency as it would only need 0.16 years to pay back of all of its debts.
PEN has a Debt to FCF ratio of 0.16. This is amongst the best in the industry. PEN outperforms 94.65% 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 has a Debt to Equity ratio of 0.02. This is in the better half of the industry: PEN outperforms 66.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.16 | ||
| Altman-Z | 17.14 |
ROIC/WACC0.77
WACC8.98%
2.3 Liquidity
A Current Ratio of 6.30 indicates that PEN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 6.30, PEN belongs to the top of the industry, outperforming 83.96% of the companies in the same industry.
A Quick Ratio of 3.68 indicates that PEN has no problem at all paying its short term obligations.
The Quick ratio of PEN (3.68) is better than 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.
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)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 3Y30.29%
EPS Next 5Y25.44%
Revenue Next Year13.8%
Revenue Next 2Y14.02%
Revenue Next 3Y13.89%
Revenue Next 5Y12.69%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 75.49, 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 65.24% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PEN to the average of the S&P500 Index (27.29), we can say PEN is valued expensively.
With a Price/Forward Earnings ratio of 49.12, PEN can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, PEN is valued a bit cheaper than the industry average as 67.38% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.74, PEN is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.49 | ||
| Fwd PE | 49.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PEN indicates a somewhat cheap valuation: PEN is cheaper than 65.78% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PEN indicates a somewhat cheap valuation: PEN is cheaper than 71.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.99 | ||
| EV/EBITDA | 55.41 |
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.
PEN's earnings are expected to grow with 30.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.32
PEG (5Y)3.12
EPS Next 2Y32.73%
EPS Next 3Y30.29%
5. Dividend
5.1 Amount
PEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
248.37
-2.69 (-1.07%)
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 Change7.39%
Market Cap9.62B
Analysts81.74
Price Target325.32 (30.98%)
Short Float %4.07%
Short Ratio2.82
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)0.02%
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 | 75.49 | ||
| Fwd PE | 49.12 | ||
| P/S | 7.76 | ||
| P/FCF | 63.99 | ||
| P/OCF | 53.69 | ||
| P/B | 7.93 | ||
| P/tB | 9.25 | ||
| EV/EBITDA | 55.41 |
EPS(TTM)3.29
EY1.32%
EPS(NY)5.06
Fwd EY2.04%
FCF(TTM)3.88
FCFY1.56%
OCF(TTM)4.63
OCFY1.86%
SpS32.02
BVpS31.32
TBVpS26.86
PEG (NY)2.32
PEG (5Y)3.12
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 | 17.14 |
F-Score8
WACC8.98%
ROIC/WACC0.77
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 3Y30.29%
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%