PURE STORAGE INC - CLASS A (PSTG)
US74624M1027 - Common Stock
We assign a fundamental rating of 5 out of 10 to PSTG. PSTG was compared to 31 industry peers in the Technology Hardware, Storage & Peripherals industry. While PSTG has a great health rating, its profitability is only average at the moment. PSTG is valued quite expensive, but it does show an excellent growth. These ratings would make PSTG suitable for growth investing!
1. Profitability
1.1 Basic Checks
PSTG had positive earnings in the past year.
In the past year PSTG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PSTG reported negative net income in multiple years.
In the past 5 years PSTG always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.37%, PSTG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Equity value of 9.20%, PSTG is doing good in the industry, outperforming 80.00% of the companies in the same industry.
PSTG's Return On Invested Capital of 4.06% is in line compared to the rest of the industry. PSTG outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 9.2% | ||
| ROIC | 4.06% |
ROA(3y)-0.28%
ROA(5y)-3.87%
ROE(3y)-2.13%
ROE(5y)-13.65%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PSTG has a better Profit Margin (4.21%) than 66.67% of its industry peers.
PSTG has a Operating Margin (4.32%) which is comparable to the rest of the industry.
The Gross Margin of PSTG (71.06%) is better than 96.67% of its industry peers.
In the last couple of years the Gross Margin of PSTG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.32% | ||
| PM (TTM) | 4.21% | ||
| GM | 71.06% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.53%
GM growth 5Y1.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PSTG is destroying value.
Compared to 1 year ago, PSTG has more shares outstanding
The number of shares outstanding for PSTG has been increased compared to 5 years ago.
PSTG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.89 indicates that PSTG is not in any danger for bankruptcy at the moment.
PSTG's Altman-Z score of 5.89 is amongst the best of the industry. PSTG outperforms 83.33% of its industry peers.
There is no outstanding debt for PSTG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 5.89 |
ROIC/WACC0.35
WACC11.66%
2.3 Liquidity
PSTG has a Current Ratio of 1.77. This is a normal value and indicates that PSTG is financially healthy and should not expect problems in meeting its short term obligations.
PSTG has a Current ratio (1.77) which is in line with its industry peers.
A Quick Ratio of 1.74 indicates that PSTG should not have too much problems paying its short term obligations.
The Quick ratio of PSTG (1.74) is better than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.38% over the past year.
Measured over the past years, PSTG shows a very strong growth in Earnings Per Share. The EPS has been growing by 46.56% on average per year.
Looking at the last year, PSTG shows a small growth in Revenue. The Revenue has grown by 7.97% in the last year.
Measured over the past years, PSTG shows a quite strong growth in Revenue. The Revenue has been growing by 15.79% on average per year.
EPS 1Y (TTM)21.38%
EPS 3Y99.07%
EPS 5Y46.56%
EPS Q2Q%0%
Revenue 1Y (TTM)7.97%
Revenue growth 3Y18.89%
Revenue growth 5Y15.79%
Sales Q2Q%8.94%
3.2 Future
The Earnings Per Share is expected to grow by 19.62% on average over the next years. This is quite good.
PSTG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.38% yearly.
EPS Next Y20.04%
EPS Next 2Y12.88%
EPS Next 3Y17.14%
EPS Next 5Y19.62%
Revenue Next Year11.81%
Revenue Next 2Y11.51%
Revenue Next 3Y12.64%
Revenue Next 5Y15.38%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 36.51, which means the current valuation is very expensive for PSTG.
PSTG's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.34. PSTG is valued slightly more expensive when compared to this.
PSTG is valuated quite expensively with a Price/Forward Earnings ratio of 35.52.
PSTG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PSTG is more expensive than 60.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PSTG to the average of the S&P500 Index (23.61), we can say PSTG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.51 | ||
| Fwd PE | 35.52 |
4.2 Price Multiples
PSTG's Enterprise Value to EBITDA ratio is in line with the industry average.
PSTG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.44 | ||
| EV/EBITDA | 70.88 |
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 PSTG's earnings are expected to grow with 17.14% in the coming years.
PEG (NY)1.82
PEG (5Y)0.78
EPS Next 2Y12.88%
EPS Next 3Y17.14%
5. Dividend
5.1 Amount
No dividends for PSTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PURE STORAGE INC - CLASS A
NYSE:PSTG (1/8/2025, 8:24:05 PM)
After market: 64.11 -0.15 (-0.23%)64.26
+1.33 (+2.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners85.89%
Inst Owner Change0%
Ins Owners5.2%
Ins Owner Change-2.12%
Market Cap20.96B
Analysts79.31
Price Target72.73 (13.18%)
Short Float %3.04%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)16.98%
Min EPS beat(2)16.57%
Max EPS beat(2)17.38%
EPS beat(4)4
Avg EPS beat(4)23.36%
Min EPS beat(4)12.43%
Max EPS beat(4)47.07%
EPS beat(8)8
Avg EPS beat(8)35.02%
EPS beat(12)12
Avg EPS beat(12)70.49%
EPS beat(16)16
Avg EPS beat(16)76.13%
Revenue beat(2)0
Avg Revenue beat(2)-0.42%
Min Revenue beat(2)-0.83%
Max Revenue beat(2)-0.01%
Revenue beat(4)0
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)-0.01%
Revenue beat(8)1
Avg Revenue beat(8)-0.44%
Revenue beat(12)3
Avg Revenue beat(12)1.83%
Revenue beat(16)7
Avg Revenue beat(16)2.02%
PT rev (1m)9.27%
PT rev (3m)10.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.01%
EPS NY rev (1m)2.68%
EPS NY rev (3m)2.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.26%
Revenue NY rev (1m)0.91%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.51 | ||
| Fwd PE | 35.52 | ||
| P/S | 6.81 | ||
| P/FCF | 36.44 | ||
| P/OCF | 26.55 | ||
| P/B | 14.86 | ||
| P/tB | 20.43 | ||
| EV/EBITDA | 70.88 |
EPS(TTM)1.76
EY2.74%
EPS(NY)1.81
Fwd EY2.82%
FCF(TTM)1.76
FCFY2.74%
OCF(TTM)2.42
OCFY3.77%
SpS9.44
BVpS4.32
TBVpS3.15
PEG (NY)1.82
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 9.2% | ||
| ROCE | 5.52% | ||
| ROIC | 4.06% | ||
| ROICexc | 12.86% | ||
| ROICexgc | 25.98% | ||
| OM | 4.32% | ||
| PM (TTM) | 4.21% | ||
| GM | 71.06% | ||
| FCFM | 18.69% |
ROA(3y)-0.28%
ROA(5y)-3.87%
ROE(3y)-2.13%
ROE(5y)-13.65%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.53%
GM growth 5Y1.48%
F-Score7
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 164.29% | ||
| Cap/Sales | 6.96% | ||
| Interest Coverage | 18.59 | ||
| Cash Conversion | 299.85% | ||
| Profit Quality | 443.42% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 5.89 |
F-Score7
WACC11.66%
ROIC/WACC0.35
Cap/Depr(3y)145.76%
Cap/Depr(5y)136.18%
Cap/Sales(3y)5.78%
Cap/Sales(5y)5.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.38%
EPS 3Y99.07%
EPS 5Y46.56%
EPS Q2Q%0%
EPS Next Y20.04%
EPS Next 2Y12.88%
EPS Next 3Y17.14%
EPS Next 5Y19.62%
Revenue 1Y (TTM)7.97%
Revenue growth 3Y18.89%
Revenue growth 5Y15.79%
Sales Q2Q%8.94%
Revenue Next Year11.81%
Revenue Next 2Y11.51%
Revenue Next 3Y12.64%
Revenue Next 5Y15.38%
EBIT growth 1Y71.47%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year49.5%
EBIT Next 3Y27.24%
EBIT Next 5YN/A
FCF growth 1Y3.95%
FCF growth 3Y73.37%
FCF growth 5Y49.69%
OCF growth 1Y17.41%
OCF growth 3Y53.44%
OCF growth 5Y32.75%