PENUMBRA INC (PEN)
US70975L1070 - Common Stock
We assign a fundamental rating of 6 out of 10 to PEN. PEN was compared to 188 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! With these ratings, PEN could be worth investigating further 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.
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 2.34%, PEN is in the better half of the industry, outperforming 73.26% of the companies in the same industry.
The Return On Equity of PEN (3.13%) is better than 74.87% of its industry peers.
The Return On Invested Capital of PEN (6.66%) is better than 83.42% 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 8.23%.
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
PEN has a Profit Margin of 2.97%. This is in the better half of the industry: PEN outperforms 73.26% of its industry peers.
PEN's Profit Margin has improved in the last couple of years.
PEN has a Operating Margin of 9.61%. This is in the better half of the industry: PEN outperforms 78.07% of its industry peers.
PEN's Operating Margin has improved in the last couple of years.
PEN has a Gross Margin of 65.70%. This is in the better half of the industry: PEN outperforms 68.45% 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 | 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.
Compared to 1 year ago, PEN has more shares outstanding
The number of shares outstanding for PEN has been increased compared to 5 years ago.
Compared to 1 year ago, PEN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 16.36 indicates that PEN is not in any danger for bankruptcy at the moment.
PEN's Altman-Z score of 16.36 is amongst the best of the industry. PEN outperforms 90.91% 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.
PEN has a better Debt to FCF ratio (0.18) than 92.51% 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.
Looking at the Debt to Equity ratio, with a value of 0.02, PEN is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 16.36 |
ROIC/WACC0.74
WACC9.04%
2.3 Liquidity
A Current Ratio of 5.82 indicates that PEN has no problem at all paying its short term obligations.
PEN has a better Current ratio (5.82) than 79.14% of its industry peers.
PEN has a Quick Ratio of 3.25. This indicates that PEN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of PEN (3.25) is better than 66.31% 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 78.52% 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 32.59% on average per year.
PEN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.96%.
The Revenue has been growing by 18.93% on average over the past years. This is quite good.
EPS 1Y (TTM)78.52%
EPS 3Y126.44%
EPS 5Y32.59%
EPS Q2Q%26.87%
Revenue 1Y (TTM)16.96%
Revenue growth 3Y23.61%
Revenue growth 5Y18.93%
Sales Q2Q%11.11%
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 31.45% on average per year.
Based on estimates for the next years, PEN will show a quite strong growth in Revenue. The Revenue will grow by 15.70% on average per year.
EPS Next Y34.43%
EPS Next 2Y35.08%
EPS Next 3Y33.48%
EPS Next 5Y31.45%
Revenue Next Year12.32%
Revenue Next 2Y13.35%
Revenue Next 3Y13.77%
Revenue Next 5Y15.7%
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.
When comparing the Revenue 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
The Price/Earnings ratio is 90.41, which means the current valuation is very expensive for PEN.
PEN's Price/Earnings ratio is a bit cheaper when compared to the industry. PEN is cheaper than 64.71% of the companies in the same industry.
PEN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.65.
Based on the Price/Forward Earnings ratio of 63.06, the valuation of PEN can be described as expensive.
68.98% of the companies in the same industry are more expensive than PEN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.56. PEN is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 90.41 | ||
| Fwd PE | 63.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEN is valued a bit cheaper than the industry average as 65.24% of the companies are valued more expensively.
72.73% 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 | 68.79 | ||
| EV/EBITDA | 64.43 |
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.
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 33.48% in the coming years.
PEG (NY)2.63
PEG (5Y)2.77
EPS Next 2Y35.08%
EPS Next 3Y33.48%
5. Dividend
5.1 Amount
PEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PENUMBRA INC
NYSE:PEN (11/21/2024, 4:15:00 PM)
After market: 240.49 0 (0%)240.49
+1.29 (+0.54%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 90.41 | ||
| Fwd PE | 63.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.63
PEG (5Y)2.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 3.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.61% | ||
| PM (TTM) | 2.97% | ||
| GM | 65.7% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.82 | ||
| Quick Ratio | 3.25 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)78.52%
EPS 3Y126.44%
EPS 5Y
EPS Q2Q%
EPS Next Y34.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.96%
Revenue growth 3Y23.61%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y